Free Market Dollar Rate Hits Record High: Dollar Reaches 200,000 Toman as Economic Pressure Deepens in 2026
Why Is the Dollar Rising in Iran?
The latest increase is particularly connected to heightened geopolitical and economic uncertainty.
The U.S. administration announced a new campaign of economic pressure on Iran on August 24, warning countries and companies that continued economic relationships with Tehran could expose them to additional sanctions. Reuters reported that the United States targeted dozens of individuals, entities and vessels while signaling that additional measures could follow.
This creates a powerful feedback loop.
When people expect sanctions to become more severe, they may expect access to foreign currency to become more difficult.
When foreign currency is expected to become more scarce, demand for dollars can increase.
When demand rises while supply is restricted, the free-market exchange rate can rise.
When the exchange rate rises, businesses may increase prices.
When prices rise, households may attempt to protect their savings by purchasing foreign currency, gold or other assets.
That additional demand can place further pressure on the currency.
August 25, 2026 | 9:11 am
