Iran's currency, the rial, has plunged to a fresh record low of more than 2.5 million rials to the US dollar, highlighting the mounting economic pressure on the country amid the ongoing Middle East conflict. Traders in Tehran exchanged more than 2.5 million rials for $1 on Tuesday, September 29, according to the Associated Press (AP).
Rial's Rapid Decline Since September
The latest collapse came only 27 days after the rial reached its previous record low of about 2.2 million to the dollar on September 2. The currency has repeatedly weakened since the war began in February, with years of international sanctions compounded by the impact of the conflict and restrictions on Iran's oil exports.
This rapid depreciation has added to pressure on Iran's already fragile economy, where businesses and households are facing rising costs and weaker purchasing power. Reuters reported that ordinary Iranians have been dealing with soaring living expenses, higher rents and medical costs, job losses and difficulties accessing basic goods as the economic impact of the war intensifies.
Economic Strain and Foreign Currency Shortage
The latest fall also reflects broader pressure on Iran's access to foreign currency. The US blockade and restrictions on Iranian oil sales have reduced a key source of foreign exchange earnings, further straining the economy. The worsening currency crisis comes as Tehran continues diplomatic efforts aimed at easing tensions with Washington and reopening the strategic Strait of Hormuz.
US-Iran Indirect Talks Over Strait of Hormuz
Iranian Foreign Minister Abbas Araghchi said indirect discussions with the United States over reopening the Strait of Hormuz had become more serious. Araghchi spoke after meeting Pakistani and Qatari mediators involved in efforts to broker an agreement between Tehran and Washington.
According to AP, he said the current discussions were focused solely on the strategic waterway, which is a critical route for global oil shipments. "The current focus is solely on the Strait of Hormuz," Araghchi told Iranian media on Monday. He said Qatari mediators were expected to engage the US side again and communicate Washington's response to Tehran.
Iran has proposed reopening the waterway within seven days, but the proposal reportedly came with conditions including the lifting of the US blockade of Iranian ports, the release of frozen Iranian assets and a waiver of sanctions affecting Iranian oil sales. US President Donald Trump rejected the Iranian proposal earlier in the week, but mediation efforts involving Qatar and Pakistan have continued. US and regional officials confirmed to AP that discussions were still underway to reach an agreement to end the fighting and reopen the waterway.
