Sanctions push Iranian rial to 2 million per dollar

The Iranian rial has fallen to a record low, trading at more than 2 million rials for one US dollar on the free market after Washington imposed its toughest sanctions yet. The move followed the launch of a US‑Israeli “war on Iran” on February 28, which has tightened the country’s already strained economy.

Decades of US and international sanctions, mainly over Iran’s nuclear programme, have already weakened the economy. The new sanctions hit the rial hard, adding to a long‑standing crisis of inflation and a sharp decline in purchasing power. The war has further disrupted production and blocked Iranian ports, making it harder for goods to enter and leave the country.

Al Jazeera tracked how much everyday items now cost. A sum that used to buy about 4 kg of tomatoes, half a kilogram of chicken and a little less than a litre of cooking oil now buys only half that amount. Tomatoes have risen 71 percent, chicken 74 percent, cooking oil 177 percent. Medicine prices have surged even faster: insulin, a lifesaver for diabetics, has jumped 642 percent, paracetamol 93 percent, and baby formula 95 percent. A 35‑year‑old mother in Tehran said her weekly grocery bill has risen 20 to 30 percent and that childcare costs have reached about 5 million rials (roughly $2.50) a day, a strain she cannot afford. The government subsidises baby formula, but many other health expenses are not covered, leaving families like hers to make painful choices.

The new exchange rate and soaring prices mean that most Iranians can no longer plan for the future. They are forced to cut back on non‑essential purchases such as new clothes or vehicles, and many are living day‑to‑day with limited savings. If the sanctions continue, the rial may fall further, and inflation could push basic goods beyond the reach of ordinary citizens. The situation also risks deepening social unrest and could prompt the government to seek new diplomatic solutions or further economic reforms to protect its population.