The Iranian rial has hit a historic low against the US dollar amid worsening economic uncertainty, fueled by deteriorating prospects for direct negotiations with Washington and a series of warnings from US President Donald Trump.
As the currency crisis deepens, Iran’s political factions have turned on each other, with conservative leaders blaming the policies of Reformist President Masoud Pezeshkian, while the pro-reform camp holds the conservative-dominated parliament responsible for exacerbating the situation by removing the economy minister.
Economic Turmoil and US Tensions
The rial’s devaluation has accelerated following intensified US airstrikes against Yemen’s Ansarullah movement, commonly known as the Houthis. Washington has repeatedly demanded that Iran cease its support for the group.
On March 15, Trump issued a warning on Truth Social, declaring that Iran’s backing of the Houthis “must end immediately… because America will hold you fully accountable and we won’t be nice about it!” He reiterated this stance on March 31, cautioning that “the real pain is yet to come, for both the Houthis and their sponsors in Iran” unless the group halts attacks on US vessels.
Amid these escalating tensions, the Iranian currency plummeted to a new low, trading at 1.02 million rials per US dollar on March 31, after breaching the critical 1 million mark the previous week.
Internal Divisions Over Currency Collapse
In a televised interview on March 17, just before the Iranian New Year, Conservative Parliament Speaker Mohammad Baqer Qalibaf sought to downplay the role of US pressure in the currency crisis. While acknowledging foreign influence, he dismissed the idea that a “tweet by someone thousands of kilometers away” could single-handedly drive exchange rates.
Hardline Iranian media echoed this sentiment, with Fars News Agency, which is affiliated with the Islamic Revolutionary Guard Corps (IRGC), describing the currency’s depreciation as part of a US-led “psychological operation.” The outlet cited Iranian experts who alleged that Washington was orchestrating a campaign of disinformation to destabilize the economy.
State-run television also attempted to reframe the crisis, with a presenter arguing on March 19 that the rial should have strengthened following Trump’s threats, as any potential military conflict would cause greater losses for the US than for Iran.
Political Fallout and Reformist Criticism
The crisis has provided ammunition for Pezeshkian’s critics, particularly among hardliners. On social media, opposition figures accused the Reformist government of mismanaging the economy. Hardline lawmaker Mahmoud Nabavian went as far as calling for those responsible for the rial’s depreciation to be “tried as war criminals” and charged with “corruption on earth,” a crime that carries the death penalty under Iranian law.
Amir Hossein Sabeti, another hardline MP and vocal critic of Pezeshkian, accused the president of coming to power through “delusional experts” and “hollow slogans.” Meanwhile, political commentator Reza Moshiri mocked Pezeshkian’s silence on the crisis, suggesting that “those who made him president should fix the problem.” His remark appeared to be an implicit reference to Supreme Leader Ayatollah Ali Khamenei, whom some believe facilitated Pezeshkian’s rise to power.
Investigative journalist Yashar Soltani also criticized the Central Bank of Iran (CBI), lambasting Governor Mohammad Reza Farzin for his “shameful silence” on the currency’s collapse.
A Deepening Crisis
With the rial continuing its downward trajectory and political infighting intensifying, Iran faces mounting economic instability. While hardliners and reformists engage in blame games, the root causes of the crisis—US pressure, internal policy failures, and structural weaknesses in the economy—remain unresolved.
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