Iran's Currency Hits Record Low as US Prepares Toughest Sanctions

Iran's currency fell to a record low of 2,016,400 rials per dollar on August 24, as Washington prepares what US officials call its toughest sanctions yet against Tehran, described as an "economic D-Day." US Treasury Secretary Scott Bessent warned of new sanctions and possible secondary measures against countries and firms doing business with Iran. Economist Ahmad Alavi said market psychology, driven by expectations of harsher sanctions, is fueling a vicious cycle where currency declines intensify inflation, further weakening the rial. Analyst Ebrahim Roshandel argued sanctions may backfire, shrinking Iran's formal economy while empowering opaque, sanctions-resistant networks linked to the IRGC. He said President Masud Pezeshkian lacks real authority, with power concentrated in unelected entities answering to the supreme leader.