Iranian rial falls to record low of 2.25 million against US dollar

The Iranian rial cratered to approximately 2.25 million per US dollar on the informal market in early September 2026, setting a new all-time low. That represents a 12.5% decline since late August alone, when the currency was trading near 2.02 million rials per dollar. To put that number in perspective: in March 2026, the rial was worth roughly 60% more against the greenback than it is today. Over the past year, it has lost about half its value. A war economy meets maximum pressure The rial’s collapse traces directly to a cascade of compounding crises. A military conflict that began on February 28, 2026, with US-Israeli strikes on Iran, set off the current phase of economic deterioration. Washington reinstated a naval blockade in July, choking off what remained of Iran’s oil export capacity. Iranian crude shipments have been reduced to near-zero levels, stripping the government of its primary source of hard currency revenue. Trade relations with the UAE, previously a critical commercial lifeline for Iranian businesses, have been suspended. Inflation has soared past 40% on a year-over-year basis. The International Monetary Fund projects that Iran’s GDP will contract by more than 5% i...