Iran's Currency Crashes Past 2 Million Rials Per Dollar Amid Conflict

Iran's currency has hit an all-time low as the US dollar trades at over 2 million rials on the free market. The country is struggling with a combination of long-running sanctions, war-related disruption, and accelerating inflation.

The economic strain is being felt by households, with prices of food, medicines, and other necessities rising sharply since the US-Israel war on Iran began on February 28. For example, an amount that could buy four kilograms of tomatoes, half a kilogram of chicken, and one liter of cooking oil before the conflict now only buys about half those quantities.

Medicine prices have also skyrocketed, with insulin rising by 642% and paracetamol increasing by 93%. Baby formula, which is subsidized by the government, has become 95% more expensive. Salaries are failing to keep pace with inflation, leaving families like Afsaneh's to reconsider what they can afford.

Businesses are also being squeezed by falling demand and a weaker rial, which has increased the cost of goods while wages have failed to keep up. The war damage has disrupted domestic production, and a US naval blockade has complicated imports and exports.