The US dollar hit a record high against the Iranian rial in Tehran's free market on Saturday, trading at 1.941 million rials. The 1.67% surge reflects mounting military and political tensions between Washington and Tehran.
The rial has lost 43.7% of its value against the dollar since the start of 2026. The currency's freefall accelerated after the US launched fresh air strikes on Iran's southern regions and imposed a new naval blockade.
These operations, aimed at degrading Iran's military capabilities and securing shipping through the Strait of Hormuz, have intensified inflation expectations.
Official data confirms severe economic stress. Annual consumer price inflation has surged to 88.6%, the highest level since World War II. A cycle of a weaker rial, rising import costs, and accelerating inflation is placing immense strain on households and macroeconomic stability.
The euro also climbed, trading at 2.22 million rials, underscoring the breadth of the currency crisis.