Iran's currency was hollowed out by our sanctions, US says
The US State Department said on Wednesday that its ongoing sanctions have played a significant role in the sharp devaluation of the Iranian rial to record lows against the US dollar.
The US State Department said on Wednesday that its ongoing sanctions have played a significant role in the sharp devaluation of the Iranian rial to record lows against the US dollar.
During a briefing on Wednesday, Deputy Spokesperson Vedant Patel highlighted that the sanctions have contributed to Iran's inability to meet its budget projections.
“As a result of US sanctions, Iran's government has failed to meet its budget projections again this year,” Patel said. “The rial is the lowest it has ever been against the dollar."
He also pointed to the broader economic impact, saying that sanctions have disrupted Iran's access to essential goods, services and technology.
"These efforts all work to cut off Iran's ability to perpetuate destabilizing actions across the region," he added, stressing the ongoing determination of the United States and its allies to prevent Iran from generating revenue.
Critics of Biden's Iran policy have long argued that his administration has allowed China to increase imports of sanctioned Iranian crude oil since 2021, allowing the shipments to increase from less than 300,000 barrels per day in 2020 to around 1.5 million in 2024.
In the latest in a wave of sanctions, the State Department announced on Wednesday that it targeted Majid Mousavi Eftekhari, Deputy Commander of the IRGC Aerospace Force, and two entities based in Iran for their support of the development of Iran's ballistic missile and drone programs.
The Iranian rial’s dramatic fall continues to exacerbate the country’s economic crisis. On Wednesday, the rial was trading at over 780,000 to the US dollar.
This sharp decline, coupled with soaring inflation, has eroded the purchasing power of ordinary Iranians, leaving many struggling to afford basic goods and services.
Iran’s economic woes are further compounded by a severe energy crisis. The country is grappling with critical shortages in electricity and natural gas, with supply failing to meet demand, especially during the cold winter months.
Power outages have become a frequent occurrence, even in major cities like Tehran. The energy crisis has reached alarming levels, with insufficient infrastructure investment, inefficiencies in energy management, and sanctions blocking access to advanced technology further exacerbating the situation.
As Iran faces its most severe economic downturn in decades, the Iranian population’s resilience is being tested as never before, with increasing uncertainty about the government’s ability to manage the nation’s worsening crises.
