Iranian rial falls past 2 million per dollar as sanctions and war pressure deepen

Iran's rial has fallen to a new all-time low on the free market, dropping past 2 million rials to one US dollar. The move comes as sanctions and the economic fallout from the US-Israel war on Iran continue to weigh on households and businesses. The currency slide has added to pressure on prices for basic goods and medicines in Tehran and beyond.

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The report says Washington has imposed its toughest sanctions yet in an effort to squeeze Tehran's economy. It also says Iran's economy has already been weakened by decades of US and international sanctions, particularly measures linked to its nuclear programme. The war, launched on February 28, is described as having worsened the economic strain on a country of about 92 million people.

The price impact is being felt in everyday purchases. Before the war, 2 million rials could buy about 4kg of tomatoes, half a kilo of chicken and just under a litre of cooking oil. Now, the same amount buys about half as much, with average prices for tomatoes up 71 percent, chicken up 74 percent and cooking oil up 177 percent.

The cost of insulin has risen by 642 percent, paracetamol by 93 percent and baby formula by 95 percent, according to the report. The currency collapse matters because it feeds directly into inflation and household hardship. In Iran, where the rial has long been under pressure from sanctions, a weaker currency makes imported goods and many essentials more expensive.

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That can quickly affect food security, access to medicine and the ability of families to plan beyond the short term. The report says prices remain highly volatile, and the figures reflect average values rather than fixed retail rates. The article also points to the wider social impact in Tehran, where families are adjusting their spending and cutting back.

One mother of a one-year-old said her family's weekly grocery bill had risen by 20 to 30 percent. She also said childcare costs had become difficult to afford, with daily daycare charges reaching around 500,000 tomans, or 5 million rials. What remains unclear is how far the rial may fall if sanctions and war-related pressure continue, and whether authorities can slow the decline.

The report does not give an official response from Iranian officials or a forecast for the currency's next move. For now, the key issue is whether the worsening exchange rate will drive another round of price rises for food, medicine and other essentials in the coming days.

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