Iran’s currency has fallen to another historic low, adding to the country’s growing economic troubles as a US naval blockade cuts off its oil exports and leaves the government struggling to access money from its remaining overseas sales.

The Iranian rial crossed 2.5 million against the US dollar in Tehran’s trading market on Tuesday, setting a fresh record. The latest decline came less than a month after the currency touched 2.2 million per dollar on September 2, highlighting how quickly the country’s financial position is deteriorating.

The currency crisis is unfolding alongside mounting pressure on Iran’s oil industry, which remains one of the government’s most important sources of revenue. With exports brought close to a standstill and international payments becoming increasingly difficult, Tehran is facing the prospect of losing access to a major source of foreign currency.

Iran’s Oil Export Terminals Record Historic Halt

One of the biggest signs of the pressure on Iran’s economy emerged from its oil export infrastructure.

Homayoun Falakshahi, head of crude oil analysis at Kpler, said Iran did not load any oil at its export terminals last month. If sustained, this would mark the first such occurrence since the 1979 Islamic Revolution.

The US naval blockade has pushed Iran’s oil exports to virtually zero, while neighbouring Persian Gulf countries have increased their own shipments under US military protection. This has also weakened Tehran’s ability to exercise control over the Strait of Hormuz.

Iran is facing difficulties beyond oil exports. The blockade has restricted maritime imports, including fuel, while land-based transportation routes are also experiencing severe congestion. This has created additional pressure on the country’s ability to bring essential goods into the domestic market.

Iranian Rial Loses Ground Against the Dollar

The latest exchange rate marks a sharp deterioration in the value of Iran’s currency.

At the beginning of 2026, the rial was trading at approximately 1.5 million against the US dollar. In August 2025, it stood at around 920,000 per dollar. The currency has therefore lost substantial value over a relatively short period.

The longer-term decline is even more striking. At the beginning of 2018, the exchange rate was approximately 35,000 rials to the dollar.

The currency’s fall has coincided with worsening economic conditions. Inflation is approaching 90%, while Iran’s GDP is expected to contract by 5.4% this year. Unemployment has increased, and energy rationing has added to the difficulties faced by households and businesses.

The economic strain has also reached the country’s political leadership. Supreme Leader Ayatollah Mojtaba Khamenei has expressed concern about maintaining social cohesion amid growing financial hardship.

Iran Could Lose Its Remaining Oil Revenue by Mid-October

Although the blockade has severely disrupted fresh oil shipments, Iran has continued receiving some revenue from crude oil that was already loaded onto tankers before the US reimposed its blockade in mid-July.

Kpler estimated that these shipments amounted to around 90 million barrels at the time. However, those remaining supplies are expected to run out by the middle of October.

The financial benefits could continue for a little longer because payments for oil deliveries, primarily destined for China, may extend until December.

Once these payments are exhausted, Iran could face an even more serious shortage of foreign currency.

Oil sales account for approximately one-third of Iran’s state budget and are also an important source of funding for the Islamic Revolutionary Guard Corps. Losing this revenue would place additional pressure on government spending and its ability to finance key operations.

The situation has become more complicated following tighter US sanctions last month, which have made it harder for Iran to transfer money through front companies and other intermediaries.

Iranian President Says Money in China Is Inaccessible

Iran’s financial difficulties are not limited to declining exports. The government is also struggling to access money from goods it has already supplied to foreign buyers.

In an interview with Fox News last week, Iranian President Masoud Pezeshkian complained that Iranian funds held in China were blocked.

He said the government was unable to withdraw its own money from a country to which it had supplied goods, making it difficult to use those funds for payments elsewhere.

The remarks point to another challenge facing Tehran. Even when Iran manages to sell its products, collecting and transferring the resulting payments remains a significant obstacle.

US Maintains Economic Pressure on Tehran

US President Donald Trump has indicated that he intends to maintain economic pressure on Iran, rejecting Tehran’s attempts to restart negotiations.

Secretary of State Marco Rubio reinforced that position during an appearance on Fox News on Monday, warning that Iran was heading towards an economic cataclysm.

Rubio argued that restrictions on oil revenue and financial transactions were intended to prevent Tehran from accessing funds that Washington believes could support military activities, weapons development and its nuclear programme.

For Iran, the combination of falling oil exports, restricted access to overseas funds and a rapidly weakening currency presents an increasingly difficult economic situation.

The country has already experienced widespread protests following an earlier currency collapse late last year. The government responded with a crackdown early this year.

Since the US and Israel launched their war against Iran in February, the rial has fallen further, raising concerns that worsening economic conditions could trigger another wave of public unrest.

With remaining oil shipments expected to run out and payments becoming harder to access, Tehran faces a critical test of how long it can sustain its finances under continued US pressure.

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