Rial, the currency of Iran, briefly experienced a historic low against the US dollar on the unofficial market following the country's extensive missile and drone attack on Israel over the weekend, heightening tensions in the Middle East. 

Rial, the Currency of Iran, Reaches a Historic Low

According to CNBC, data from the foreign exchange monitoring site Bonbast indicated that the exchange rate reached 705,000 rials per USD around 10:30 a.m. local time on Sunday. However, the rial has since recovered some of its losses.

This depreciation follows Iran's retaliatory strike against Israel, which occurred in response to a suspected Israeli attack that resulted in the deaths of several top Iranian commanders in Damascus, Syria, on April 1.

Israel reported identifying and neutralizing approximately 300 threats and extinguished "99%" of those bound for Israeli land on Saturday night. This marked the first direct attack on Israel from Iranian territory. 

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Sanction-Battered Economy of Iran

Due to the attack, Iran is now at risk of being hit with more trade and diplomatic restrictions. According to CNBC, Iran's economy is already under strain from soaring inflation, primarily fueled by US sanctions, which have already reduced the sales of some of Iran's key exports like crude and oil products.

In response to the heightened tensions, Israel has called for an emergency meeting of the UN Security Council, while President Joe Biden sought to convene the Group of Seven (G7) on Sunday to address the situation. 

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