The Iranian rial has reached a record low against the US dollar as military and political tensions drive currency depreciation and inflation.
Key facts
- •The US dollar reached 1.941 million rials on Saturday, a record high.
- •The Iranian rial has depreciated by approximately 43.7% against the dollar since the start of the year.
- •Annual consumer price inflation reached 88.6% last month, the highest since the Second World War.
- •Government estimates place total wartime damage at $300 billion.
- •Recent currency pressure follows a new naval blockade and US air strikes on southern Iran.
The US dollar reached a record high of 1.941 million Iranian rials on Tehran's free market on Saturday. This 1.67% increase from the previous day follows mounting regional military and political tensions, which have triggered a sell-off of the Iranian currency and raised concerns regarding further inflation.
By the numbers
Currency Market Performance
The euro also saw gains, trading at 2.22 million rials, an increase of 1.64% from Friday's unofficial close. Since the start of the year, when the dollar traded at approximately 1.35 million rials, the rial has lost roughly 43.7% of its value against the US dollar.
Economic Impact and Inflation
Iran's annual consumer price inflation has reached 88.6%, the highest level recorded since the Second World War. This follows a rise from 52.6% in December 2025 to 68% in February 2026. Government estimates indicate that wartime damage has reached $300 billion, further straining the economy as the rial's depreciation increases import costs and erodes household purchasing power.
Timeline
- February 28The dollar climbed to 1.72 million rials following US and Israeli air strikes.
- 7 AprilThe dollar rebounded to 1.63 million rials after threats of air strikes against critical infrastructure.
- SaturdayThe US dollar hit a record high of 1.941 million rials.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by Euronews Business.
