Iran rial hits record low 1.13M to dollar as UN snapback sanctions resume: What to know
The sanctions, which were trigged by the three European signatories to the nuclear deal, will not hinder Iranian oil exports to China, an official said.
Iran’s rial neared historic lows on Monday after the United Nations reinstated sanctions over Tehran's nuclear program, threatening fresh economic turmoil for the country.
The sanctions, reinstated on Sunday under the snapback mechanism of the 2015 nuclear deal, include a freeze of Iranian assets abroad and a ban on arms sales to Tehran, among other measures.
The snapback mechanism, which allows UN sanctions to be reimposed under the accord, was due to expire in October. Germany, France and the United Kingdom activated it on Aug. 28 over Iran’s alleged violations. The three European powers, known as the E3, urged Tehran to restart nuclear talks with the United States, fully cooperate with the International Atomic Energy Agency and account for its stockpile of highly enriched uranium.
Before Israeli and American strikes on Iran in June, the Islamic Republic was enriching uranium to 60% purity, far above the 3.67% limit set by the 2015 nuclear deal and not far from the 90% weapons-grade threshold. The United States withdrew from the accord in 2018 and reimposed its own sanctions on Iran, including measures targeting the country’s energy sector.
