Iran’s Rial Hits Record Low As Hormuz Talks Intensify

Iran’s rial has fallen to a new record low of more than 2.5 million to the US dollar, as the ongoing Middle East war continues to put pressure on the country’s economy.

According to the Associated Press, traders in Tehran exchanged more than 2.5 million rials for $1 on Tuesday, just 27 days after the currency reached its previous record low of 2.2 million rials to the dollar on September 2.

The latest decline reflects mounting economic pressure on Iran, with the rial repeatedly reaching new lows since the conflict began in February.

The currency’s slide comes as Tehran awaits a response from Washington over efforts to reopen the strategically important Strait of Hormuz, with Iranian Foreign Minister Abbas Araghchi saying indirect negotiations with the United States had become more serious.

Araghchi spoke after meeting Pakistani and Qatari mediators involved in efforts to broker an agreement between Tehran and Washington, saying discussions were currently focused on the waterway. He said Qatari intermediaries would communicate with the US and convey Washington’s response to Tehran.

“The current focus is solely on the Strait of Hormuz,” Araghchi told Iranian media on Monday, adding that Tehran would make a decision after receiving the US response.

US and regional officials confirmed that mediators were working to broker an agreement between Iran and the US aimed at ending the fighting and reopening the Strait of Hormuz. The diplomatic efforts have continued despite US President Donald Trump rejecting an Iranian proposal to reopen the waterway within seven days.

Iran’s proposal reportedly included conditions such as the lifting of the US blockade of Iranian ports, the release of frozen Iranian assets and sanctions relief for Iranian oil sales.

The latest diplomatic efforts come as the conflict continues to disrupt energy flows and weigh on Iran’s economy. Oil prices have also remained elevated amid concerns over prolonged disruption to supplies through the Strait of Hormuz.

Araghchi has said Tehran is awaiting Washington’s formal response through the mediators, while US officials have indicated that any broader agreement would also need to address Iran’s nuclear programme.