Iranian Rial Falls Below Two Million Per Dollar

Iran's currency has plunged to a new record low, with the US dollar now trading for more than 2 million Iranian rials on the country's free market as the impact of intensified US sanctions continues to weigh heavily on the economy.

The latest fall in the rial comes after Washington imposed some of its toughest sanctions yet, targeting parts of Iran's economy in an effort to increase pressure on Tehran.

Iran has endured years of US and international sanctions, particularly over its nuclear programme. The measures have severely restricted the country's access to international markets and contributed to persistent inflation and a sharp decline in the value of the rial.

The economic crisis has worsened significantly since the US-Israel war with Iran began on February 28, placing additional pressure on a population of around 92 million people.

The decline in the currency has translated directly into higher prices for basic necessities. An examination of prices in Tehran shows that 2 million rials now purchase considerably less food, medicine and other essential goods than they did before the war.

Before the conflict, 2 million rials could buy roughly 4kg of tomatoes, half a kilogram of chicken and just under a litre of cooking oil.

Today, the same amount of money buys around half that quantity. Tomato prices have risen by about 71 percent, while chicken has increased by 74 percent. Cooking oil has recorded an even sharper increase of 177 percent.

The cost of essential medicines has also surged.

Insulin, a vital medication for people with diabetes, has increased by 642 percent. Paracetamol is now about 93 percent more expensive, while baby formula - much of which is subsidised by the government - has risen by approximately 95 percent.

For many Iranian households, soaring prices have forced families to reduce the amount of food they purchase and change what they eat.

Iranians commonly use the term toman when discussing money. One toman is equivalent to 10 rials and is widely used because it makes the country's increasingly large currency figures easier to handle.

The economic strain has been compounded by damage to infrastructure and production caused by the war, while restrictions affecting Iranian ports have made imports and exports more difficult.

The collapse of the rial has increased the cost of imported goods and raw materials, while sanctions have further limited Iran's ability to trade internationally. At the same time, wages have failed to keep pace with rapidly rising living costs.

The government-approved minimum wage for the Iranian calendar year ending in March 2027 stands at 166 million rials, equivalent to about $82 at the reported exchange rate.

Including government assistance and benefits, the monthly figure remains below 220 million rials, or roughly $108.

With the currency continuing to weaken and prices rising sharply, Iranian households are facing an increasingly severe squeeze on their ability to afford basic necessities.