The Iranian Rial Collapses Against the Dollar After the Return of International Sanctions

In an unprecedented decline of the national currency, the Iranian rial recorded its lowest historical level against the US dollar this Sunday morning, exceeding the barrier of 1.12 million rials per one dollar, according to data from the "Bonbast" and "Alan Chand" websites specialized in tracking the unofficial currency market in Iran.

This collapse comes after the re-imposition of strict UN sanctions on Tehran, following the failure of nuclear negotiations between Iran and Western powers, and the activation of what is known as the "snapback mechanism" by France, Britain, and Germany.

The dollar was trading just above the one million rial mark before the new sanctions were imposed, but the international decision has returned the rial to a rapid downward trend, amid escalating diplomatic and economic tensions.

The UN sanctions came into effect on Saturday at 8 PM New York time (midnight Saturday/Sunday GMT), and include a ban on transactions related to Iran's nuclear and missile programs, along with other economic restrictions.

These sanctions are expected to deepen the Iranian economic crisis, which is already suffering from severe inflation and a prolonged recession.

The Iranian government strongly condemned the UN step, describing it as a "flagrant violation of international law," and confirmed in an official statement issued by the Foreign Ministry that it "will confront any attempt to undermine the interests of the Iranian people with a firm and appropriate response," urging countries not to comply with these sanctions, which it considers null and void.

It is noted that tensions have resurfaced following reports from the International Atomic Energy Agency indicating that Iran continues to enrich uranium to levels of up to 60%, a percentage that dangerously approaches the technical threshold necessary to produce a nuclear bomb (90%).

Despite Tehran's repeated denials of seeking to possess nuclear weapons, Western powers and Israel continue to question its intentions, which has led to the obstruction of previous understandings that lifted sanctions a decade ago.

Observers expect that the coming period will witness further declines in the value of the Iranian rial, alongside rising prices of basic goods and increased pressure on the middle and poor classes within the country, amid the government's inability to access global markets or release its frozen funds.