Iran's rial hits record low: $1 now buys 2 million rials

Iran's rial has fallen to a record low, with $1 now trading for 2 million rials on the free market, after Washington imposed its harshest sanctions yet aimed at crippling Tehran's economy. The US-Israel war against Iran, which began on February 28, has further exacerbated economic hardships for the nation of approximately 92 million people.

According to Al Jazeera's reporting from Tehran's streets, before the war, 2 million rials could buy around 4 kilograms of tomatoes, half a kilogram of chicken, and nearly 1 liter of cooking oil. Now, the same amount buys only about half of that, as tomato prices have surged 71%, chicken 74%, and cooking oil 177%.

The price of insulin – a life-saving drug for diabetics – has skyrocketed by 642%, while essential medicines like paracetamol are up 93%, and infant formula, despite government subsidies, is 95% more expensive. Prices remain highly volatile, and these figures reflect average values.

For Iranian families, this has not only changed what they can buy but also their diets. Afsaneh, a 35-year-old mother of a 1-year-old living with her husband in Tehran, says her family's weekly shopping bill has risen 20-30%. "Before the war, we could think about what we wanted to do in the next three or six months, but now our only concern is how to survive until the end of the month on our current income," Afsaneh said.

Government subsidies for infant formula help families like Afsaneh's, but routine health check-ups and supplements are not covered by insurance, making it hard to properly care for young children. "Many expenses like buying new clothes or upgrading the car have been cut. And I don't think things will improve anytime soon," she said.

War damage has disrupted production, while the US Navy's blockade of Iran's ports has complicated imports and exports. The rial's devaluation has pushed up goods prices, sanctions limit access to international markets, and wages have not kept pace. The government-approved minimum wage for the year ending March 2027 is 166 million rials (about $82), and including benefits, it's still under 220 million rials ($108).

Zamir, 35, who works in men's fashion in Tehran, says sales are down 40% from last year, and he's struggling to keep his store open. "It's fair to say a lot of people in this industry will go bankrupt before the end of winter and be forced to close their businesses," he said. "From the moment you leave home until you return, you have to spend at least 2 million tomans ($10) on coffee, cigarettes, water, and transport. Even being extremely frugal, you still spend 700,000-800,000 tomans ($3.5-$4) a day, not counting food and daily essentials."

Salama, 28, a fisherwoman in Hormozgan, a coastal province in southern Iran, says soaring food prices have made life harder for her family. "We used to spend about 500,000 tomans ($2.5) on weekly groceries, but now we have to spend at least 5 million tomans ($25) and still cut back on meat and chicken or remove them from our diet entirely," she recounted.

Salama's income hasn't risen—it's actually fallen, forcing her to tighten spending further. "Even common cold medicine for children or seasonal allergy meds, even Iranian brands, now cost around 300,000 tomans ($1.5), and a general practitioner visit is no less than 1 million tomans ($5)," she added.

The war did not create Iran's economic problems, but it has worsened them. War damage, halted production, and blockades have added pressure, while unemployment and stagnant purchasing power make it hard for families to adapt. For millions of Iranians, the question is no longer how much prices have risen, but how much food, housing, and essentials a month's wage can still buy.