By January 12-13, 2026, black market rates were around 1.43-1.45 million IRR per USD, showing the rial’s true market value under long-standing sanctions, while official exchange rates remain largely symbolic.

The collapse is driven by soaring inflation and the impact of international sanctions. The crisis triggered nationwide strikes in December 2025, which quickly grew into mass protests against the clerical government.

Also Read: Iranian official admits 2,000 deaths as protests shake the country

Violence has erupted across Iran, with over 2000 people reported dead, hundreds arrested, and a near-total internet blackout imposed by authorities to control the situation.

Despite government claims that the unrest is under control and pro-regime rallies in Tehran, protests continue. The crisis has also increased international tensions, with the US considering possible military responses.