Iran's rial hits record low as US prepares fresh sanctions

Iran's currency has tumbled to an unprecedented low, touching 2.02 million rials against the U.S. dollar as trading opened on Monday. The collapse comes just hours before Washington is expected to unveil a fresh round of sanctions aimed at intensifying pressure on Tehran's already battered economy.

The official central bank rate stands at roughly 1.5 million rials to the dollar, but the market rate — the one most Iranians actually pay — has now sunk far beyond that. The rial was already under strain before the U.S. and Israel launched strikes on Iran on Feb. 28, but nearly six months of war have driven it to repeated new lows.

U.S. Treasury Secretary Scott Bessent is scheduled to hold a news conference at 1700 GMT, where he is expected to provide details on the planned sanctions. The measures would add to existing penalties and an American naval blockade that have severely constrained Iran's economy.

Tehran has signaled a tough response. Iran's Foreign Ministry spokesperson warned Monday that the country would react harshly to expanded sanctions. The warning follows a statement from the new head of Iran's top security body, who said Tehran would view any nation's support for new U.S. economic measures as an "act of war."

The currency crisis unfolds against a backdrop of broader regional tensions, including ongoing conflicts involving Iranian-backed groups and fragile ceasefires in the Middle East.