Iran's currency plummets amid Trump's 'maximum pressure' plan
Iran’s currency hit a new low on Saturday with $1 costing 1,043,000 rials, and it could fall even further as global tensions rise.
The country had just finished celebrating Nowruz, the Persian New Year, during which stores were closed and only informal trading on the streets took place, according to the Associated Press. The outlet noted that this put additional pressure on the market.
Iranian money exchanges and traders have turned their electronic signs amid uncertainty over the value of the rial, the Associated Press reported.
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International sanctions, on top of immense pressure from the U.S., have taken a toll on Tehran and its economy. Prior to its new record low, the rial had already dropped to nearly half its value since President Masoud Pezeshkian took office in July 2024, Reuters reported.
The White House announced on Feb. 4 that President Donald Trump was restoring maximum pressure on Iran, with a focus on blocking the Islamic Republic from getting a nuclear weapon. The National Security Presidential Memorandum (NSPM) on Iran called for the countering of Tehran's influence abroad, in addition to the blocking of Iran’s ability to develop a nuclear weapon.
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Secretary Marco Rubio addressed the threats emanating from Iran when speaking to reporters in Israel less than two weeks after Trump signed the NSPM. He also acknowledged that the Iranian people are victims of the regime in Tehran.
"It is the single greatest source of instability in the region. Behind every terrorist group, behind every act of violence, behind every destabilizing activity, behind everything that threatens peace and stability for the millions of people who call this region home, is Iran," Rubio said during the joint news conference with Israeli Prime Minister Benjamin Netanyahu.
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As part of the Trump administration’s crackdown on Iran, the Treasury Department targeted a network that it said was working to ship millions of barrels of Iranian crude oil to China.
The Treasury Department also noted that Iran uses its oil sales to fund terrorist groups, such as Hamas and Hezbollah.
When Trump imposed sanctions on Tehran during his first term, 55,000 rials was equivalent to $1, according to Reuters.