Iran's foreign minister dismissed a threatened new round of U.S. sanctions as a sign of American desperation, with Treasury Secretary Scott Bessent due to unveil the measures on Monday. The rebuff comes as Iran's rial keeps collapsing on the street market, with the dollar crossing 2 million rials for the first time.
Iranian Foreign Minister Abbas Araqchi said on Sunday that Washington's expected new sanctions would fail, dismissing them as a repeat of past measures. U.S. Treasury Secretary Scott Bessent is due to hold a press conference at 2 p.m. EDT on Monday to announce the new measures against Tehran.
Araqchi said in a video posted on Telegram that U.S. leaders shifting from military operations back to sanctions shows they are desperate. According to Reuters, he added that Washington must speak to Iran respectfully to find "a solution based on justice and honour."
Iran holds firm despite months of war
Tehran remains defiant after nearly six months of war with the U.S. and Israel, which launched attacks on Iran on February 28. Iran has brought shipping to a near-standstill in the Strait of Hormuz, refusing to let unauthorized oil tankers through the waterway, and the resulting blockade has pushed up global oil prices.
President Trump has warned of economic consequences for any country giving Iran a lifeline, while Bessent has pressed China, which buys more than 80% of Iran's shipped oil according to 2025 data from analytics firm Kpler, to cooperate with Washington.
Rial nears breaking point
The pressure shows up most starkly in Iran's currency. The dollar has crossed 2 million rials on the unregulated market, up from about 1.5 million rials at the start of 2026. The rial has shed roughly 43-50% of its value against the dollar since January.
Inflation in July 2026 reached 87.9%, driving up the cost of groceries, rent and imported medicine while wages stay tied to a shrinking currency. The gap between the official exchange rate and the street rate has widened to around 23%.
What's driving the slide
U.S. sanctions have constrained Iran's oil exports and access to the global financial system for years, and the naval blockade in the Strait of Hormuz has choked off the foreign-exchange inflows Iran needs to stabilize its currency. Regional military conflicts since 2025 have inflicted an estimated $300 billion in damage on the Iranian economy, on top of the inflation already eroding households' purchasing power. Iran's government approved a plan in mid-August 2026 to strip four zeros off the rial, but the redenomination addresses the currency's appearance rather than the sanctions regime or trade losses behind its decline.
Sources: Investing.com, Crypto Briefing
Trading involves risk.
Risk Disclaimer
