The rial fell to a record 2.02 million to the dollar on Monday, setting the stage for President Donald Trump's so-called "economic D-Day"—his latest gambit to bring the months-long conflict with Iran to a conclusion. Trump has said his two main priorities in a war-ending deal with Tehran are ensuring it never develops a nuclear weapon and securing free passage for commercial shipping through the Strait of Hormuz, a vital route for global energy supplies. The renewed economic pressure on Iran, which will include a fresh round of wider sanctions, will be yet another test of whether U.S. power can deliver the results Trump wants in Iran after previous U.S. pressure campaigns failed to produce.
The further collapse of the rial will add to an inflationary spike in Iran that is squeezing households tighter than ever. Past economic shocks have triggered mass unrest against the regime in Iran, protests subdued with state brutality. A deepening economic crisis spurred on by intensified American financial pressure is a threat to the endurance of a regime whose security forces have so far held together, and may push Iran to a dangerous limit.
The U.S.-Israeli war that began on February 28 is approaching six months, while an American naval blockade has made it extremely difficult for Iran to export oil, its most valuable product. The International Monetary Fund expects Iranian inflation to approach 70 percent this year and the economy to contract by more than 5 percent. Treasury Secretary Scott Bessent has promised the “toughest sanctions in history,” including pressure on countries and companies that continue doing business with Iran.
He is set to unveil the full plan on Monday. Iran has already lost another economic cushion. The United Arab Emirates, long an important trading partner and re-export hub that helped Tehran blunt sanctions, has suspended trade with Iran in recent days.
All of these pressures mean Trump’s self-described “economic D-Day” is landing on an economy whose defenses have already been weakened. Whether weakness becomes leverage remains an open question to which we are nearing an answer. China is a key test of Trump's "D-Day".
Beijing bought more than 80 percent of Iran’s shipped oil in 2025, according to Kpler data, cited by . It has also purchased Iranian oil, albeit much less, during the course of the war. Beijing’s response to new U.S. sanctions is therefore central to how much additional income Washington can deny Tehran.
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