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

Iran's rial hit a record low of 2.02 million to the U.S. dollar on Monday, as Washington prepared to announce new sanctions described as an "economic D-Day" that would further pressure the sanctions-battered economy. The informal market rate, which most Iranians pay, fell sharply from the official central bank rate of around 1.5 million rials. The currency had already weakened due to double-digit inflation and negative growth before the U.S.-Israel attack on Feb. 28, with nearly six months of war worsening the decline. The U.S. has failed to win concessions from Iran, which still controls shipping through the Strait of Hormuz. Iran and Oman are reportedly finalizing a joint management plan for the waterway, while Treasury Secretary Scott Bessent promised secondary sanctions on countries trading with Iran, and the UAE has already suspended all trade with Tehran.