Iranian Rial Collapses to Record Low Amid Ongoing Economic Crisis and Sanctions

The Iranian rial has hit a record low against the US dollar, reaching an unprecedented 2.4 million rials per dollar in the country's free foreign exchange market. This marks another major decline for Iran's national currency, with inflation already running at 61.4% and food prices rising by 128.1% year-on-year.

The continued weakness of the rial makes imported products more expensive, exacerbating the economic crisis in Iran. The country is facing exceptional pressure from US sanctions, including 'Operation Economic Outcast', which aims to cut Iran off from remaining international economic links.

Iranian Foreign Minister Abbas Araghchi proposed a seven-day framework for reopening the Strait of Hormuz and resuming negotiations over Iran's nuclear program in exchange for certain conditions being met by Washington. However, US President Donald Trump has rejected this proposal, leaving the situation uncertain.