Iran’s rial hits historic low after Trump’s warning on Houthi attacks
Shafaq News/ Iran’s currency plunged to a historic low on Tuesday, trading at one million rials per US dollar, a day after President Donald Trump warned Tehran of retaliation if its Houthi allies in Yemen launched an attack.
The sharp devaluation of the rial, which had remained stable at 70 per dollar before the 1979 Islamic Revolution, comes amid soaring inflation and economic uncertainty. Gold prices also rose as Iranians sought safer assets.
Economic experts warned that even food inflation, averaging 100% in recent months, is expected to reach critical levels unless Tehran re-engages in negotiations with Washington.
The rial, valued at around 40,000 per dollar in early 2018, began its decline after Trump withdrew from the 2015 nuclear deal in May of that year and reimposed sanctions, pushing inflation above 40%.
Despite long negotiations with the Biden administration between 2021 and 2022, Iran did not reach an agreement to revive the deal, and economic conditions have continued to deteriorate. In February, Trump called for new talks, vowing to tighten sanctions unless Iran curbs its nuclear ambitions. However, Supreme Leader Ayatollah Ali Khamenei has so far rejected dialogue, insisting Tehran will not negotiate under pressure.
