Iran's currency has collapsed to a record low, plunging to 1.8 million rial per dollar amid the prolonged US-Israel war and uneasy ceasefire, also as surging global energy prices hit the economy.

The rial began sliding sharply two days ago after weeks of artificial stability. In the early phase of the war that kicked off on February 28, the currency held steady due to a near-total halt in imports and limited market activity.

The renewed freefall reflects runaway inflation driven by sanctions but also economic mismanagement, intensifying pressure on households also amid mass layoffs especially in Iranian industries like textiles. In some cases whole major steel factories have been obliterated, for example. Currently, the US is maintaining three aircraft carriers in the region and is sending additional troops and equipment, while Israel signals readiness to resume fighting. The Israelis have a stated goal of government overthrow or else total societal collapse. WSJ meanwhile writes:

To contain the economic fallout, the Iranian government has raised wages, subsidized basic goods and handed out cash to the poor. But authorities are confronting a level of hardship not seen in decades, according to residents.

"It is an authoritarian regime, and it can claim that resisting economic pressure is a question of national pride," said Alex Vatanka, a senior fellow and Iran expert at the Middle East Institute. At the same time, "as the money dries up because of the blockade, we may find that more and more folks have no choice but to mobilize politically," he said.

Such suffering is being intentionally engineered by Washington, as Bessent and others have previously boasted.

Brent War Highs, Iran Announces Fuel Rationing
Brent crude oil prices have briefly reached their highest level of the Iran War, at $119.50/barrel $120, which is also the highest since 2022. Iran is meanwhile starting to ration fuel, according to state sources, with the country's oil minister newly announcing the following:

IRAN OIL MINISTER: JUSTIFIES RATIONING FUEL CONSUMPTION BY "WAR CONDITIONS"

IRAN OIL MINISTER: NO INTERNAL CONCERNS REGARDING THE SECURING AND DISTRIBUTION OF FUEL

Brent crude oil futures rose above $110 soon after Trump's earlier morning threat and warning to Iran.