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

Iran’s currency hit a record low Monday as the U.S. prepared to announce new sanctions, with the rial dropping to 2.02 million against the dollar. The move adds pressure on an economy already strained by prior sanctions and a naval blockade. The currency was under pressure before the U.S. and Israel attacked Iran on Feb. 28, amid double-digit inflation and negative growth, but nearly six months of war have worsened conditions. Daily staples have become unaffordable, with rice up 60% and beef prices over 150% higher since the conflict began. Iran retains leverage through threats on ships in the Strait of Hormuz, nearly halting traffic in the vital waterway. Tehran and Oman are reportedly finalizing a joint management plan, while the U.S. promised secondary sanctions on countries trading with Iran.