Rial Reaches New Low Amid Ongoing Conflict and Naval Blockade

The Iranian rial has hit a new record low against the US dollar due to ongoing conflict and economic pressure from sanctions and a naval blockade. The currency weakened to around 1.8 million against the dollar on the open market, marking a sharp fall from roughly 811,000 a year ago.

This decline follows weeks of relative stability earlier in the conflict, but has now resumed its slide, raising concerns of further inflation as import costs surge.

The US has imposed a naval blockade after Iranian restrictions on vessels transiting the Strait of Hormuz, a critical global oil corridor. Maritime traffic has dropped significantly, disrupting trade flows with key partners including China and the UAE.