Iran’s currency fell to another record low on Sunday after the United States announced new sanctions aimed at the country’s oil exports and parts of its banking system. The move adds fresh pressure to an economy already strained by inflation, restricted access to foreign currency and widening uncertainty for households and businesses.

The rial’s decline underscores the growing cost of sanctions for ordinary Iranians, who face rising prices and shrinking purchasing power as the currency weakens. Traders and businesses often respond quickly to new restrictions, with import costs rising and financial channels becoming even harder to use.

The latest measures are part of Washington’s broader effort to curb revenue tied to Iran’s energy trade. U.S. officials say the sanctions are designed to limit funds available to the government, while critics argue the fallout is felt most sharply by civilians navigating daily economic hardship.

For many Iranian families, the currency slide is another sign of an economy under severe strain. As the rial loses value, people face deeper pressure on savings, wages and basic goods, intensifying frustration over the government’s inability to shield the public from repeated shocks.

Banking sector

Iran’s rial sinks to a new low after fresh U.S. sanctions on oil exports