(TJV NEWS) Iran’s currency, the rial, plunged to a new all-time low of 1,043,000 rials to one US dollar on Saturday, with experts warning that the value could continue to fall as global tensions escalate.

This dramatic decline follows the signing of a National Security Presidential Memorandum (NSPM) by former President Trump on February 4, 2025, which renewed maximum pressure on Iran’s government. The NSPM was designed to prevent Iran from obtaining a nuclear weapon and to counter its destabilizing influence abroad.

As part of the NSPM, the U.S. Treasury Secretary is tasked with enforcing sanctions and ensuring compliance with existing economic restrictions on Iran. This includes issuing guidance for various business sectors—such as shipping, insurance, and port operations—about the risks of violating U.S. sanctions against Iran or its proxies. Additionally, the Secretary of State is directed to work on driving Iran’s oil exports to zero and collaborating with the U.S. Permanent Representative to the United Nations to enforce international sanctions on Iran.

The Associated Press (AP) reports that during the Persian New Year (Nowruz), the rial hit the 1 million mark, with currency shops closing and informal street trading dominating the scene. However, when traders resumed work on Saturday, the rial plummeted even further to 1,043,000 to the dollar, signaling that the decline could be permanent. On Tehran’s Ferdowsi Street, home to the country’s major currency exchanges, some traders even stopped displaying the fluctuating exchange rates due to the uncertainty.

Reza Sharifi, a currency exchange worker in Tehran, explained, “We turn it off since we are not sure about the successive changes of the rate.”

The Gateway Pundit pointed out that following Trump’s victory in November 2024, the rial had already dropped to a then-record low of 703,000 to the dollar. This is in stark contrast to the approach taken by President Joe Biden, who, during his time in office, provided Iran with more than $80 billion.

As tensions rise and Iran’s economy faces increasing pressure, the rial’s dramatic fall could signal more economic challenges ahead for the country.