US expands sanctions to block all Iranian revenue as rial hits record low

The Iranian rial dropped to 2.02 million to the US dollar as trading opened on currency markets Monday, after the Trump administration announced sweeping new sanctions aimed at blocking all potential sources of revenue for Iran.

Treasury Secretary Scott Bessent said the new measures go beyond existing restrictions by imposing secondary sanctions on countries and entities that continue to do business with Iran, effectively threatening to cut off any nation from the US financial system if it maintains trade ties with Tehran. The administration characterised the sanctions as an "economic D-Day" designed to sever Iran's access to global markets.

The currency had already been under severe pressure before the US and Israel launched military strikes against Iranian targets on February 28. The latest sanctions package, announced Monday, targets Iran's oil exports, petrochemical sales, and any financial intermediaries that facilitate trade, including banks and shipping companies operating in third countries.

Iran's Parliament Speaker Mohammad Bagher Qalibaf met with Pakistan's army chief, Field Marshal Gen. Asim Munir, in Tehran on Monday, highlighting Tehran's diplomatic efforts to maintain regional support amid the tightening economic noose. Iran warned of a "harsh response" to the new measures, though it did not specify retaliatory steps.

Global oil markets have been volatile since the February military confrontation, with prices swinging on fears of supply disruption in the Strait of Hormuz. Analysts say the new secondary sanctions could force major importers in Asia and Europe to choose between Iranian oil and access to the US financial system.

The rial's collapse deepens a domestic economic crisis that has fuelled inflation, eroded household purchasing power, and contributed to periodic unrest in Iran. The currency has lost more than 90% of its value since 2018, when the US withdrew from the nuclear accord and reimposed sanctions.

**Sources:** Associated Press