Iran's Rial Hits Record Low, Bazaar Shopkeepers Struggle to Survive

Iran's bazaar shopkeepers are struggling to stay in business due to a collapsing currency, weaker consumer demand, and rising costs. The rial has hit an all-time low of over two million against the US dollar, making it difficult for merchants to attract customers and cover their own costs.

Shopkeepers in Tehran's Grand Bazaar have reported that rents have increased dramatically, forcing some businesses to give up their shops due to unaffordable rent. In Shiraz, a shopkeeper described how his monthly rent had jumped to 320 million rials ($160) from 180 million rials after the currency slumped.

Merchants are caught between raising prices to cover their costs and keeping prices low enough for customers to afford them. The pressure is not limited to Tehran, with shopkeepers in Bandar Abbas also blaming expanded US sanctions for worsening economic hardship.

While some merchants have expressed frustration and desperation, others remain optimistic that Iran will find ways around the pressure. One trader compared Washington's sanctions to a bully trying to dictate what Iranians can eat.