Iranian currency hits record low after Khamenei rejects US talks
Iran’s currency, the rial, plunged to a record low of 891,000 per US dollar on Saturday, following Supreme Leader Ali Khamenei’s rejection of talks with Washington the day before.
Iran’s currency, the rial, plunged to a record low of 891,000 per US dollar on Saturday, following Supreme Leader Ali Khamenei’s rejection of talks with Washington the day before.
Compared to the same period last year, when the dollar stood at 510,000 rials, the national currency has devalued by 75%.
The economic fallout from the rial's collapse has been profound. Consumer goods inflation in Iran has surged to approximately 50%, leaving more than one-third of the population below the poverty line.
“Negotiating with such a government should not be done; it is neither wise, intelligent nor honorable,” said the 85-year-old cleric during a meeting with air force personnel in Tehran.
“No problem will be solved through negotiations with the United States,” he added, despite calls by many insider politicians and commentators in Tehran to open negotiations with the United States to ease sanctions.
"We must understand this correctly; they should not make it seem to us that if we sit at the negotiation table with that government, this or that problem will be solved. No, no problem will be solved through negotiations with the United States."
Meanwhile, the US State Department told Iran International on Friday that the Trump "maximum pressure" sanctions on Iran would remain unless a deal was reached.
Although President Donald Trump reaffirmed his sanctions strategy earlier this week, he left the door open for an agreement, saying that he preferred a diplomatic resolution.
Masoud Pezeshkian, Iran's relatively moderate president, has expressed tentative openness to talks, contrasting with Khamenei's firm stance.
Over the past five years, tens of millions of Iranians have experienced a steady decline in living standards, as wages have failed to keep pace with rising prices. Since the reintroduction of US sanctions in 2018, the rial’s value has plummeted more than twentyfold. The iannual inflation rate has hovered at around 40% for the past five years.
Basic living costs have become unattainable for many, with the average worker’s monthly earnings shrinking to the equivalent of $135 from $ 200 earlier this year, while official data estimates $500 is necessary to cover basic needs.
“The issue of Palestine is a fundamental matter for us, and the victory of Palestine is a certainty,” Khamenei said during the meeting.
The Hamas delegation was led by Mohammad Ismail Darwish, Chairman of the Hamas Shura Council, and included Khalil al-Hayya, Deputy Head of Hamas' Political Bureau, and Zaher Jabarin, Hamas’ head in the West Bank. The senior officials celebrated what they described as a 'great victory of the resistance in Gaza' and praised Iran's consistent support.
The meeting took place as the US reinstated its “maximum pressure” policy on Tehran, with President Donald Trump indicating a preference for renewed nuclear talks. However, in a separate address on Friday, Khamenei firmly rejected any prospect of negotiations, stating, "Negotiating with such a government should not be done; it is neither wise, intelligent, nor honorable."
On Saturday, Khamenei also dismissed US pressure on Iran, asserting, "These threats do not affect the mindset of our nation, our officials, or our youth." He reiterated that Iran’s support for the Palestinian cause remains steadfast, describing it as "a resolved matter in the minds of the Iranian people."
Addressing the Hamas leaders, Khamenei said, “You have not only defeated the Zionist regime but, in reality, you have overcome the United States,” framing Gaza’s recent military actions as part of a broader resistance against Western influence.
In addition to rejecting diplomatic overtures, Khamenei dismissed the notion that negotiations could ease Iran’s economic struggles.
Since 2018, when Trump reimposed sanctions targeting Iran’s oil exports and banking sector, the country’s economy has sharply deteriorated. This decline has been further compounded by decades of domestic mismanagement, corruption, and a focus on foreign activities over internal welfare.
The Iranian rial has lost 95% of its value, plunging 22-fold, while inflation has hovered around 40% for the past five years. Official estimates suggest that more than one-third of the population now lives below the poverty line.
Iridium Hexafluoride (IR46) has multiple applications, including in brachytherapy (internal radiotherapy), low-dose medical radiography, and the production of IR192, which serves as a substitute for cobalt-60 (Co-60) in radiotherapy, according to state news ISNA. Additionally, Iran says IR192 is widely used as a radiography source, particularly in the oil and gas industries, non-destructive testing (NDT), and radiobiology research to study the effects of radiation on living tissues.
With the successful production of IR46, Iran says it joins a select group of countries possessing this advanced technology, opening possibilities for exporting the product to other nations.
Mohammad Eslami, the Head of the Atomic Energy Organization of Iran (AEOI), visited Isfahan on Saturday to inaugurate several key projects, including the Iridium Hexafluoride (IR46) production line, a comprehensive technical safety testing facility, a semi-industrial sintering furnace for fuel pellets, and a resistance welding (RW) machine at the Shahid Raeisi Nuclear Site.
The Trump administration has reinstated its "maximum pressure" policy on Iran, emphasizing that sanctions will remain unless Tehran agrees to a new deal with the US.
Under pressure for uranium enrichment and alleged secret nuclear activities, Iran always insists that its nuclear program is only for peaceful purposes and scientific advancement.
While President Trump has expressed openness to negotiations, Iran's Supreme Leader Ali Khamenei firmly rejected the idea, calling talks with Washington unwise and dishonorable. Khamenei criticized the US for withdrawing from the 2015 nuclear deal, labeling it an act of betrayal. Despite Trump's stated desire for peace, he remains committed to preventing Iran from acquiring nuclear weapons, maintaining a hardline stance unless a new agreement is reached.