Iranian rial hits new low as US sanctions pile pressure on economy

Iran's economy had been struggling before the war began, battered by decades of international sanctions and domestic mismanagement. But a raft of new US sanctions is likely to further batter domestic markets.

Treasury Secretary Scott Bessent announced "Operation Economic Outcast" to "foreclose every other option available to the Iranian regime."

The new sanctions target sectors including technology, gold, aviation, shipping, and digital assets, weighing heavily on the already weak local currency, which has hit new lows against the US dollar.

For many businesses, the sanctions mean another setback.

Nader, a shoemaker in Tehran, said: "The fabric adhesive I used to buy has doubled in cost.
Even a simple spool of thread has gone up significantly." Narges, another business owner, said her exports to the Gulf states have disappeared.

But despite the mounting strain, there is also defiance, with one business owner in Bandar Abbas saying: "We are not unfamiliar with the sanctions, nor are we afraid of their exaggerations."

Al Jazeera's Tohid Asadi reports from Tehran.

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