Iran's currency plunges to record low as war takes its toll

30/04/2026 05:11 AST

Iran's national rial currency hit a record low of 1.8 million to the US dollar on Wednesday as the Middle East war took its toll on an already crumbling economy.

The fall in value in the past two days is likely to further fuel inflation in a country where imported goods from food and medicine to electronics and raw materials are affected by the dollar rate, experts said.

Demand for foreign exchange ?that built up during six weeks of fighting with the US and Israel ?is now flowing into the open market, they said.

Despite a ceasefire, a US blockade of Iranian ports has increased pressure on Iran's economy, cutting into a key source of revenue and hard currency by stopping or intercepting oil shipments.

US and Israeli strikes on Iranian infrastructure have also battered the economy by forcing ?Tehran ?to suspend exports of steel and petrochemical products, which are important foreign currency earners for the heavily sanctioned country.

According to Iran's central bank, year-on-year inflation for the month from March 20 to April 20 was 65.8 percent, a trend which is likely to accelerate ?as Iran's currency weakens ?and Tehran is faced ?with reconstruction needs.

Iran's currency lost about 70 percent of its value in 2025, which was the spark for nationwide anti-government protests.


AP

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