Iranian Currency Declines Following EU Decision to Reimpose Sanctions

The Iranian rial reached a record low, dropping to 1,040,000 per US dollar in the unregulated market, following actions by European states against the Islamic Republic for not fulfilling its nuclear commitments, The Caspian Post reports citing foreign media.

On Saturday, August 30, the Iranian rial approached a record low after leading European powers took punitive measures against the Islamic Republic for failing to fulfill its nuclear obligations.

According to online currency trackers and a Tehran-based trader, on the first day of the working week in Iran, the currency fell to 1,040,000 per US dollar on the unregulated market.

This is almost equal to the historical low of 1,050,000 recorded at the end of March.

The fall came after Britain, France, and Germany decided to refer Iran's case to the UN for violating the 2015 nuclear deal, triggering a 30-day "snapback" mechanism that could reinstate sanctions previously lifted under the agreement.

Iranian President Masoud Pezeshkian stated that Tehran is determined to prevent new sanctions.

The US welcomed Europe's move, while emphasizing that Washington remains open to "direct dialogue with Iran" for a "peaceful, lasting solution."