Iran's rial plunges to record low as US readies 'economic D-Day' sanctions

Iran's currency has sunk to an unprecedented low, with the rial trading at 2.02 million against the U.S. dollar on Monday as informal markets opened. The decline comes as Washington signals a fresh round of sanctions, which officials have described as an "economic D-Day" aimed at intensifying pressure on Tehran.

The rial's slide reflects the cumulative toll of sustained sanctions, an American naval blockade, and nearly six months of conflict with the U.S. and Israel that began on February 28. Even before the military strikes, the Iranian economy was grappling with double-digit inflation and negative growth, leaving the currency vulnerable to further shocks.

Monday's record low marks the latest in a series of depreciations, underscoring the deepening economic strain on ordinary Iranians as the war and external restrictions continue to bite. The informal exchange rate, widely used by citizens and businesses, has become a barometer of the country's financial distress.

With the U.S. poised to unveil additional punitive measures, analysts expect the rial to remain under pressure in the near term, though the wire report offers no projections. The announcement of new sanctions is likely to further complicate any path to economic stability.