Iran’s currency fell to a new record low on Sunday, underscoring the strain on households already hit by rising prices and shrinking purchasing power. The slide comes as annual inflation has climbed above 40%, adding fresh pressure to a population facing higher costs for food, rent and basic goods.

According to Reuters, the downturn was worsened by tighter sanctions that have limited oil exports, a key source of revenue for the Iranian economy. With foreign currency inflows under pressure, the rial’s weakness has deepened concern about the government’s ability to stabilize markets.

For ordinary Iranians, the currency collapse translates into more economic pain in daily life. The loss in value makes imports more expensive and erodes wages, pushing more families toward financial insecurity at a time when the country is already grappling with long-running economic mismanagement and international isolation.

The latest plunge adds to broader worries about Iran’s economic outlook. Unless inflation cools and export constraints ease, pressure on the rial is likely to continue, leaving civilians to bear the brunt of the crisis.