Iranian rial hits record low after UN sanctions reinstated

The Iranian rial tumbled to an all-time low against the US dollar on Sunday following the reimposition of United Nations sanctions.

Currency-tracking websites reported that the rial was trading at approximately 1.12 million per US dollar on the black market, a sharp decline from just over one million rials a month ago, according to Bonbast and AlanChand.

The United Nations reimposed sweeping sanctions on Iran late Saturday, a move Tehran has vowed to resist, amid allegations it breached the 2015 nuclear agreement designed to block its path to a nuclear weapon.

The measures, which took effect at 8:00 PM EDT, mark the collapse of a deal once struck between Iran and six world powers, the US, Britain, France, Germany, Russia, and China. The snapback mechanism was triggered a month ago by Britain, France, and Germany, accusing Iran of exceeding nuclear limits. Iran has consistently denied that it is pursuing nuclear arms.

Iranian President Masoud Pezeshkian appeared to play down the looming sanctions, saying before departing New York, “It is not like the sky is falling.” Still, Tehran has warned of a “harsh response” to the measures. On Saturday, it recalled its ambassadors to Britain, France, and Germany for consultations.

Russian Foreign Minister Sergei Lavrov sharply criticized the move, arguing that the sanctions lacked legal basis. “It is unlawful, and it cannot be implemented,” Lavrov said, adding that he had cautioned UN Secretary-General Antonio Guterres against recognizing the return of sanctions, calling it “a major mistake.”

The European trio had previously floated the possibility of delaying sanctions for up to six months if Iran granted wider access to UN inspectors and engaged in talks over its uranium stockpile. However, European officials claim that Tehran has failed to take the necessary steps.