Record-Low Rial as US Unveils Sweeping Iran Sanctions

KEMETIC MINDS — BREAKING NEWS
August 25, 2026

Treasury Secretary Scott Bessent said Monday that new U.S. sanctions are designed to block all potential sources of revenue for Iran and warned nations to cut economic ties with Tehran or face retaliation, as Iran’s currency fell to a record low of 2.02 million rials to the dollar (ABC7 New York, 2026; ABC7 Chicago, 2026).

Key Facts

• China, Turkey and the United Arab Emirates are Iran’s largest trade partners, though Bessent did not name countries that could face potential secondary sanctions (ABC7 New York, 2026).
• “Let there be no ambiguity as to the position of the United States,” Bessent told a news conference, adding that “an economic engagement of any kind with this murderous regime will expose those responsible to the full reach of American power” (ABC7 New York, 2026).
• The rial dropped to 2.02 million per U.S. dollar as trading opened on currency markets; Iran’s official central bank rate stood at around 1.5 million rials to the dollar (ABC7 New York, 2026).
• Since the war began, rice is up some 60% and beef prices are more than 150% higher, while the International Monetary Fund forecasts that gross domestic product will contract more than 5% (ABC7 New York, 2026).
• Iran’s attacks and threats on ships in the Strait of Hormuz have brought traffic in the vital waterway to a near halt, and Iran is refusing to fully reopen it unless it can charge ships (ABC7 New York, 2026).

Sanctions and Economic Pressure

Bessent made the announcement as Iran’s currency hit a record low. The currency had already been under pressure before the U.S. and Israel attacked Iran on Feb. 28, as Iran faced double-digit inflation and negative growth, and the rial has repeatedly hit new lows over nearly six months of war (ABC7 New York, 2026). Washington has said the new sanctions aim to put more pressure on an economy already battered by previous sanctions and a U.S. naval blockade (ABC7 New York, 2026).

“It’s no longer acceptable to operate in the gray spaces” of the conflict, Bessent said (ABC7 New York, 2026). In an attempt to break the impasse, the administration promised even stronger sanctions, including secondary sanctions on countries that continue to do business with Iran (ABC7 New York, 2026). Ahead of the announcement, President Donald Trump posted on social media: “IRAN IS COMPLETELY COLLAPSING!!!” (ABC7 New York, 2026).

Strait of Hormuz Dispute

Still, economic pressure has not yet translated into political pressure, according to the report. Iran retains a key strategic advantage: its attacks and threats on ships in the Strait of Hormuz have brought traffic in the waterway to a near halt, damaging the world economy and heaping pressure on Trump ahead of congressional elections (ABC7 New York, 2026). The war, as a result, has devolved into a fight over who controls the strait, through which a fifth of the world’s traded oil transited before the conflict (ABC7 New York, 2026). Iran and Oman, which is on the opposite side of the strait, are reportedly in the final stages of agreeing on a plan for joint management of the waterway, and Oman’s foreign minister is set to visit Iran on Tuesday (ABC7 New York, 2026).

What’s Still Unconfirmed

Bessent did not name which countries could face potential secondary sanctions from the United States (ABC7 New York, 2026). The reported Iran-Oman plan for joint management of the Strait of Hormuz has not been independently confirmed and is described in the sourcing only as “reportedly” (ABC7 New York, 2026).

References

1. ABC7 New York. (2026, August 24). Bessent says new US sanctions aim to block all potential sources of revenue for Iran. abc7ny.com
2. ABC7 Chicago. (2026, August 24). Bessent says new US sanctions aim to block all potential sources of revenue for Iran. abc7chicago.com