Iranian Rial Falls to Record Low Amid Return of Trump’s ‘Maximum Pressure’ Sanctions 

Latest Developments 

• Rial Falls to All-Time Low: Iran’s currency, the rial, plunged to a new all-time low against the U.S. dollar on February 8. The rial was trading at 892,500 to the dollar, according to the unofficial markets on Saturday, down from 869,500 just one day prior. The latest fall represents a devaluation of the rial of approximately 75 percent from the same period in 2024 when the dollar was selling at 510,000 rials.  

• Skyrocketing Inflation Continues: Iranians have reportedly resorted to protecting their savings by investing in dollars, other hard currencies, gold, and cryptocurrencies as the official inflation rate in the Islamic Republic sits at around 35 percent. Consumer goods inflation rates are even higher, around 50 percent, with one-third of the Iranian population currently sitting below the poverty line.  

• Crash Comes as Trump Announces Return To ‘Maximum Pressure’ Sanctions: The rial’s depreciation comes after U.S. President Donald Trump signed a National Security Presidential Memorandum on February 4 to restore his “maximum pressure” sanctions against Tehran in order to “deny Iran all paths to a nuclear weapon” and counter “Iran’s malign influence abroad.” Iranian Supreme Leader Ali Khamenei said on February 7 that it would be “unwise, unintelligent, and not honorable” to engage in negotiations with the United States government over a denuclearization deal. The rial has lost over 90 percent of its value since Trump’s “maximum pressure” sanctions were introduced during his first term in 2018. 

FDD Expert Response 

“The Iranian rial has crashed to over 900,000 per USD, a stark fall from 70 before the mullahs seized power in 1979. The Islamic Republic has plunged Iran into economic ruin, political oppression, rampant corruption, and violence, destabilizing the nation and the region. A U.S. strategy of maximum pressure on the regime and maximum support for the Iranian people can empower Iranians to dismantle the Islamic Republic, bringing peace to the Middle East and eliminating a major threat to American security.” — Mark Dubowitz, CEO 

“This is a direct result of President Trump’s very public and clear directive to restore maximum pressure on Tehran. The president dramatically increased his leverage by making maximum pressure an official policy for the market to see, and he will continue increasing his leverage with each major enforcement action taken pursuant to his order. Sanctions leverage has a lot to do with psychology and momentum, so the market needs to see a sustained campaign for the president to achieve his objectives.” — Richard Goldberg, Senior Advisor 

“The massive depreciation of the rial over the last week provides a clear window into how the Iranian market and society perceive Trump’s maximum pressure campaign and the likelihood of a deal between Washington and Tehran. Washington should build on this momentum through further actions that signal its seriousness.” — Saeed Ghasseminejad, Senior Iran and Financial Economics Advisor 

FDD Background and Analysis 

“‘Denying Iran All Paths to a Nuclear Weapon’: Trump Reimposes Maximum Pressure Against Tehran,” FDD Flash Brief 

“Trump’s Return Pushes Iran Into a Defensive Posture,” by Janatan Sayeh 

“Trump’s year of opportunity against Iran,” by Janatan Sayeh and Saeed Ghasseminejad 

“‘Not Under Pressure or Sanctions’: Tehran and Key European Powers Discuss Resuming Nuclear Talks,” FDD Flash Brief