The Iranian rial has fallen to a new record low against the US dollar. According to the Associated Press, the American currency traded above 2.5 million rials per $1 on the Tehran market.
The previous low was recorded on September 2, when the exchange rate reached 2.2 million rials to the dollar. That means the Iranian currency has lost more than 12% against the dollar in less than a month.
AP notes that Iran’s economy has been under pressure from international sanctions for many years. Additional strain has come from new restrictions imposed after the start of the military conflict, as well as the US naval blockade of Iranian oil shipments.
On Tuesday, the US administration also announced sanctions against ten individuals and entities from Iran, Hong Kong and Pakistan. The US Treasury said they are suspected of involvement in the procurement of weapons and components for Iran’s Ministry of Defense.
Against this backdrop, contacts have continued over the Strait of Hormuz. Iran’s foreign minister, Abbas Araghchi, told Iranian media that indirect talks with the US on the issue had become “more serious,” with Qatar and Pakistan acting as mediators.
The Strait of Hormuz is crucial for the global energy market because it carries key oil and gas supply routes from the Persian Gulf states.
