As the rial collapses and gold prices soar, the regime clings to denial while relying on Russia and China for lifelines.
Record-Breaking Currency and Gold Prices
On Monday, September 1, the dollar price in Tehran’s open market broke another record, reaching 106,400 tomans. The euro followed the same trend, trading above 124,000 tomans—an increase of 2.1 percent in just 24 hours.
The gold market mirrored this surge. Following the official activation of the snapback mechanism by European JCPOA members on August 28, the price of 18-carat gold per gram hit 8,427,000 tomans—a “historic record” by state media’s own admission. By September 1, the price of a single gold coin had climbed into the 95 million toman range.
These figures underscore a larger economic shift: as sanctions loom, capital is flowing out of housing and stock markets and flooding into foreign exchange and gold, leaving the regime scrambling to contain panic.
Central Bank Denial and Empty Promises
Despite these unprecedented developments, Central Bank Governor Mohammad Reza Farzin dismissed concerns as “media manipulation” designed to “create fear.” He acknowledged difficulties in supplying foreign currency due to sanctions but offered no concrete measures, claiming vaguely that the Central Bank was working to “restore calm.”
Farzin insisted that Iran’s gold and foreign exchange reserves were “safe and reliable,” though he failed to explain how they could prevent the collapse of the rial or curb runaway inflation.
Regime’s Political Paralysis
While the economy reels, the regime’s officials focus not on solutions but on defiance. Deputy Foreign Minister Kazem Gharibabadi threatened European countries, declaring that they had “20–30 days” to reverse their decision before sanctions take effect. Instead of outlining practical economic strategies, he boasted of consultations with Shanghai Cooperation Organization members and the supposed backing of Russia, China, and Pakistan against the snapback mechanism.
Regime president Masoud Pezeshkian echoed these appeals on September 1, urging members of the Shanghai Plus Summit to “play a role” in countering European sanctions. He repeated Tehran’s longstanding rhetoric, warning that the use of the snapback mechanism would “only complicate the situation and lead to more tension,” while advising the West to “turn to diplomacy.”
Looming Sanctions and Growing Isolation
Experts warn that the regime’s deadline to comply with European conditions is nearing its end, setting the stage for the activation of the snapback mechanism and the return of binding UN sanctions under Chapter VII of the UN Charter. These measures would reinstate comprehensive restrictions on arms, finance, missiles, and travel—sanctions enforceable by all UN member states, including China and Russia.
For Iran’s economy, this will mean further depreciation of the national currency, escalating inflation, rising unemployment, and deepening poverty—trends already visible in recent days.
Hollow Rhetoric vs Harsh Reality
Despite the mounting crisis, officials continue to dismiss the impact of sanctions. Mohammad Reza Aref, regime’s first vice president, claimed the snapback mechanism would “not disrupt our people,” boasting that “our people have long since overcome the sanctions.” He added: “The Westerners should activate the snapback and reveal the last card. We haven’t even revealed our first card yet.”
These words ring hollow as millions of Iranians struggle with skyrocketing prices and diminishing access to basic necessities. Even Pezeshkian himself admitted during a television interview on August 29 that “a large part of the country’s problems today are rooted in sanctions; sanctions that have always had their first effect on the dollar and euro exchange rates, and their continuation will further deepen the gap between the rial and foreign currencies.”
A Nation on the Brink
The collapse of the rial, the surge in gold prices, and the regime’s inability—or refusal—to act reflect more than an economic crisis. They symbolize the political paralysis of a regime cornered by its own policies, dependent on foreign powers for survival, and increasingly detached from the suffering of its people.
With snapback sanctions approaching and international isolation intensifying, the Iranian people face harsher conditions ahead, while the regime clings to denial and empty rhetoric.
