Iran Economy Under Strain from Sanctions

By Reuters

Published October 01, 2012.
  • Print
  • Share Share

A precipitous drop in Iran’s currency, the rial, shows that sanctions are cutting “deeper and deeper” into its economy, the United States said on Monday, reiterating Iran must rein in its nuclear program.

The rial plunged against the U.S. dollar in open-market trading on Monday, and has lost more than a quarter of its value over the past week.

The United States and its allies, who accuse Iran of seeking to develop nuclear weapons despite Iran’s insistence that its atomic program is peaceful, have tightened sanctions this year, notably via a European Union embargo on Iranian oil and U.S. sanctions targeting banks that deal with Iran’s central bank.

“Our understanding is that the Iranian currency has dropped to a historic low today against the dollar in informal currency trading – this despite some frantic efforts by the Iranian government last week to try to prop it up, rearrange the way it dealt with these issues,” State Department spokeswoman Victoria Nuland told reporters in Washington.

“From our perspective, this speaks to the unrelenting and increasingly successful international pressure that we are all bringing to bear on the Iranian economy. It’s under incredible strain,” she added.

Sanctions are “cutting deeper and deeper into the Iranian economy and this is an important factor in trying to change the calculus of the Iranian leadership,” she said.

The United States and other countries are seeking to intensify pressure on Tehran “so that it will understand that the international community is not going to tolerate Iran with a nuclear weapon,” she added. “They have to make a choice.”


The Jewish Daily Forward welcomes reader comments in order to promote thoughtful discussion on issues of importance to the Jewish community. In the interest of maintaining a civil forum, The Jewish Daily Forwardrequires that all commenters be appropriately respectful toward our writers, other commenters and the subjects of the articles. Vigorous debate and reasoned critique are welcome; name-calling and personal invective are not. While we generally do not seek to edit or actively moderate comments, our spam filter prevents most links and certain key words from being posted and The Jewish Daily Forward reserves the right to remove comments for any reason.





Find us on Facebook!
  • Mazel tov to Chelsea Clinton and Marc Mezvinsky!
  • If it's true, it's pretty terrifying news.
  • “My mom went to cook at the White House and all I got was this tiny piece of leftover raspberry ganache."
  • Planning on catching "Fading Gigolo" this weekend? Read our review.
  • A new initiative will spend $300 million a year towards strengthening Israel's relationship with the Diaspora. http://jd.fo/q3Iaj Is this money spent wisely?
  • Lusia Horowitz left pre-state Israel to fight fascism in Spain — and wound up being captured by the Nazis and sent to die at Auschwitz. Share her remarkable story — told in her letters.
  • Vered Guttman doesn't usually get nervous about cooking for 20 people, even for Passover. But last night was a bit different. She was cooking for the Obamas at the White House Seder.
  • A grumpy Jewish grandfather is wary of his granddaughter's celebrating Easter with the in-laws. But the Seesaw says it might just make her appreciate Judaism more. What do you think?
  • “Twist and Shout.” “Under the Boardwalk.” “Brown-Eyed Girl.” What do these great songs have in common? A forgotten Jewish songwriter. We tracked him down.
  • What can we learn from tragedies like the rampage in suburban Kansas City? For one thing, we must keep our eyes on the real threats that we as Jews face.
  • When is a legume not necessarily a legume? Philologos has the answer.
  • "Sometime in my childhood, I realized that the Exodus wasn’t as remote or as faceless as I thought it was, because I knew a former slave. His name was Hersh Nemes, and he was my grandfather." Share this moving Passover essay!
  • Getting ready for Seder? Chag Sameach! http://jd.fo/q3LO2
  • "We are not so far removed from the tragedies of the past, and as Jews sit down to the Seder meal, this event is a teachable moment of how the hatred of Jews-as-Other is still alive and well. It is not realistic to be complacent."
  • from-cache

Would you like to receive updates about new stories?




















We will not share your e-mail address or other personal information.

Already subscribed? Manage your subscription.