Tehran markets react to new US sanctions
The United States imposed new financial sanctions on Iran targeting 60 individuals and entities, including Wellbreech Capital, a company involved in oil trading, in an effort to tighten the grip on Iranian financing and trade. These sanctions caused a sharp decline in the Iranian rial's exchange rate, with the US dollar surpassing the one-million riyal threshold, leading to widespread disruptions in the currency market and a surge among citizens to purchase dollars and gold, as well as to sell their assets to protect their savings. Economic pressures also resulted in reduced purchasing power and rising prices, with inflation reaching 66.6%, and food prices doubling by 128% over the year. The oil sector was severely affected, with Iran's exports to China decreasing by 61%. International institutions anticipate Iran's economy might shrink by approximately 4.5% this year, amidst ongoing economic challenges and deteriorating living conditions for citizens.
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