DUBAI, United Arab Emirates (AP) — Iran's currency, the rial, reached a record low on Monday as the United States prepared to announce new sanctions. The rial fell to 2.02 million against the U.S. dollar in informal currency markets, while the official Central Bank rate was approximately 1.5 million rial to the dollar. The currency has faced pressure due to ongoing economic challenges, including double-digit inflation and negative growth, exacerbated by nearly six months of conflict.
U.S. President Donald Trump has struggled to secure concessions from Iran, which maintains control over the Strait of Hormuz, a crucial waterway for global oil trade. Iranian attacks have disrupted shipping traffic in the region. Reports indicate that Iran and Oman are nearing an agreement for joint management of the Strait of Hormuz, allowing ships to enter through an Iranian-controlled route and exit via an Omani route.
In an effort to address the situation, U.S. Treasury Secretary Scott Bessent announced that stronger sanctions would be introduced, including secondary sanctions on countries conducting business with Iran. Bessent stated that the rial's weakness and high inflation are a result of the economic pressure exerted by the U.S. administration. Following these developments, the United Arab Emirates announced the suspension of all trade with Iran, which has historically been one of its largest trading partners. Mohsen Rezaei, a leader in Iran's Supreme National Security Council, warned that support for new U.S. economic measures would be viewed as an act of war.