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!
  • Step into the Iron Dome with Tuvia Tenenbom.
  • What do you think of Wonder Woman's new look?
  • "She said that Ruven Barkan, a Conservative rabbi, came into her classroom, closed the door and turned out the lights. He asked the class of fourth graders to lie on the floor and relax their bodies. Then, he asked them to pray for abused children." Read Paul Berger's compelling story about a #Savannah community in turmoil:
  • “Everything around me turns orange, then a second of silence, then a bomb goes off!" First installment of Walid Abuzaid’s account of the war in #Gaza:
  • Is boredom un-Jewish?
  • Let's face it: there's really only one Katz's Delicatessen.
  • "Dear Diaspora Jews, I’m sorry to break it to you, but you can’t have it both ways. You can’t insist that every Jew is intrinsically part of the Israeli state and that Jews are also intrinsically separate from, and therefore not responsible for, the actions of the Israeli state." Do you agree?
  • Are Michelangelo's paintings anti-Semitic? Meet the Jews of the Sistine Chapel: http://jd.fo/i4UDl
  • What does the Israel-Hamas war look like through Haredi eyes?
  • Was Israel really shocked to find there are networks of tunnels under Gaza?
  • “Going to Berlin, I had a sense of something waiting there for me. I was searching for something and felt I could unlock it by walking the streets where my grandfather walked and where my father grew up.”
  • How can 3 contradictory theories of Yiddish co-exist? Share this with Yiddish lovers!
  • "We must answer truthfully: Has a drop of all this bloodshed really helped bring us to a better place?”
  • "There are two roads. We have repeatedly taken the one more traveled, and that has made all the difference." Dahlia Scheindlin looks at the roots of Israel's conflict with Gaza.
  • Shalom, Cooperstown! Cooperstown Jewish mayor Jeff Katz and Jeff Idelson, director of the National Baseball Hall of Fame, work together to oversee induction weekend.
  • 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.