Iran's currency, the rial, hit a new low against the U.S. dollar, trading at over 1 million rials for a single dollar on Saturday as the country came back from an extended holiday. The exchange rate had dropped during the Persian New Year, Nowruz, rising further as only informal street trading occurred due to closed currency shops. Upon resumption of trading on Saturday, the rate fell to 1,043,000 rials to the dollar, indicating that this new low could be sustained.

In Tehran's Ferdowsi Street, a central area for money exchanges, some traders turned off their electronic signs displaying rates due to uncertainty about the rial's potential further decline. The economic strain on Iran has worsened due to sanctions, especially after the U.S. withdrew from the nuclear deal in 2018. During the agreement in 2015, the rial traded at 32,000 to the dollar.

Trump's "maximum pressure" policy on Tehran has impacted the country by targeting Iranian oil trade, potentially leading to decreased oil sales and heightened inflation. Despite attempts to initiate direct talks with Iran, Washington has faced obstacles, with Iran showing readiness for indirect negotiations under the Biden administration, which have not progressed.

The economic challenges in Iran have sparked public unrest and political tension, particularly as foreign pressures have increased expectations for inflation and a drop in oil sales, leading to a higher demand for foreign currencies.