The Iranian rial struck a record low of 1,746,000 to the US dollar on Iran's open market by 2 June 2026, up from 1,705,000 on 31 May — a 2.4% depreciation in two days and a 41% devaluation over the preceding six months. The collapse accelerated after Iran suspended nuclear talks on 1 June, removing the last near-term prospect of sanctions relief.

The rial has been under sustained pressure since the start of the Iran-Israel-US conflict in early 2026. Successive rounds of US and EU sanctions, a US naval blockade restricting oil export revenues, and the flight of foreign exchange reserves have compounded the decline. The Central Bank of Iran's official rate diverges sharply from the open market; most ordinary Iranians access foreign currency through the open (informal) market, where the record rate applies. Importers of food and medicine pay the open-market rate, amplifying inflation on essential goods.

The currency's freefall has become a domestic political pressure point for the Pezeshkian government, which has been unable to secure relief through diplomacy. A sustained rate above 1,500,000 signals a structural loss of confidence rather than a temporary shock; the breach of 1,746,000 sets a new floor for what markets consider plausible.

Common Questions

What is the Iranian rial worth against the dollar today?

By 2 June 2026, the Iranian rial had hit a record low of 1,746,000 to the US dollar on Iran's open market, a 41% devaluation over six months driven by sanctions and the US naval blockade.Source: Lowdown / open-market exchange data

Why has the Iranian rial collapsed so sharply in 2026?

The rial's collapse reflects US and EU sanctions blocking oil revenues, the US naval blockade on Persian Gulf shipping, and the collapse of nuclear talks on 1 June 2026 that removed the last near-term prospect of sanctions relief.Source: Lowdown

How does the official Iranian exchange rate differ from the open market rate?

The Central Bank of Iran maintains an official rate that diverges sharply from the open (informal) market rate where most Iranians access foreign currency. The record 1,746,000 figure is the open-market rate; official rates are set artificially lower.Source: Lowdown

What happens to Iranian food imports when the rial weakens?

Iranian importers of food and medicine must pay the open-market dollar rate, so a weaker rial directly raises prices of essential goods for ordinary consumers, amplifying inflation across the economy.Source: Lowdown

Source Material

Iranian rial

How the World Sees Them

Iran

The record rate undermines the government's claim that the economy can absorb sanctions. Inflation on imported food and medicine is the most immediate domestic consequence.

China

Beijing continues to purchase Iranian oil at a discount in yuan, partially offsetting dollar-denominated pressure on the rial but unable to prevent the structural collapse.

United States

Washington views rial collapse as validation of its maximum-pressure strategy; Treasury has signalled no relief until Iran verifiably dismantles its enrichment programme.

European Union

The EU's successive sanctions packages have contributed to the rial's decline; European officials privately acknowledge the humanitarian cost to ordinary Iranians.