Rial Reaches Record Low as US Prepares New Sanctions on Iran
The Iranian rial has hit a record low against the US dollar as Washington prepares to impose new sanctions on Tehran. The currency fell to 2.02 million rials per dollar when informal markets opened, despite Iran's official Central Bank rate being around 1.5 million rials to the dollar.
The decline is largely attributed to nearly six months of war with the US and Israel, which has pushed the economy into double-digit inflation and negative growth. However, the currency slide has not led to concessions from Tehran, as Iran continues to maintain control over shipping through the Strait of Hormuz.
Iran and Oman are reportedly working on a plan to jointly manage the strait, allowing ships to enter through an Iranian-controlled route and leave through an Omani-controlled route. The development comes amid criticism of Oman by US President Donald Trump, who has threatened to bomb the country if it 'gets in the way.'