Iran’s rial weakened to IRR2.355mn per dollar on September 9 as fighting with the United States intensified, according to the latest open-market quotation from local traders seen by IntelliNews.

The latest rate extends a decline that had already taken the currency past IRR2mn per dollar in August. The dollar now costs about 16% more rials than at the IRR2.031mn selling rate recorded on August 24.

Bonbast quoted the dollar’s selling rate at IRR2,355,000 and its buying rate at IRR2,354,000. The euro’s selling rate stood at IRR2.7385mn, while sterling was offered at IRR3.1905mn.

The updated dollar quotation exceeded the IRR2.332mn afternoon rate cited earlier, marking a further weakening of the Iranian currency during the session.

The decline coincided with renewed military exchanges involving Iranian oil tankers and US military targets in the region.US Central Command said American forces destroyed five Iranian oil tankers on September 8 after the Islamic Revolutionary Guard Corps twice attempted to strike a US Navy warship with ballistic missiles. Washington said no American personnel were harmed.

Iran subsequently launched missiles towards a base used by US forces in Jordan. Jordan’s military said it intercepted 18 missiles, while two others fell in unpopulated areas, with no casualties reported.

The IRGC also claimed attacks on vessels near the Strait of Hormuz, widening the confrontation around the shipping route.

Oil prices rose above $100 a barrel on September 9 as the latest attacks heightened concerns about Gulf energy supplies and the prospects for restoring normal shipping through the region.

The renewed fall in the rial comes despite recent attempts by the Central Bank of Iran to contain volatility. Governor Abdolnasser Hemmati said earlier this month that Iran had sufficient foreign currency and that the CBI was prepared to provide up to $2bn to the market if required. The bank had previously made $500mn in foreign currency banknotes available through the banking system.

Those measures have so far struggled to counter the effect of political and military developments on the open market. The dollar was around IRR1.995mn on August 26 and IRR2.053mn on August 29 before moving above IRR2.1mn at the end of August. At IRR2.332mn on September 9, it is now about 17% higher than its August 26 level.

The rise in the UAE dirham is particularly significant for the Iranian market. Traders often watch the dirham alongside the dollar because commercial and financial links with the UAE have historically helped set expectations for the rial. The UAE’s suspension of trade and financial transactions with Iran in August removed one of Tehran’s most important regional commercial channels and added pressure to the currency.

High inflation has also increased demand for foreign currency as Iranian households and businesses seek to protect the value of their savings and working capital. Official figures for August showed prices 89% higher than a year earlier, while the 12-month average inflation rate reached 69.9%.