Tehran, Iran – Iran’s national currency has plunged to new lows as authorities mobilise to dampen the impact of the naval blockade enforced by the United States.
The Iranian rial shot above 1.81 million to the US dollar on the open market by early afternoon on Wednesday before partially recovering. The embattled currency changed hands for about 1.54 million earlier this week, and its rate was about 811,000 per US dollar a year ago.
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The rial had remained relatively stable over the past two months after experiencing an earlier drop as US forces amassed in the lead-up to the US-Israeli war on Iran, which began at the end of February.
The latest freefall follows on from unchecked inflation, which has been increasingly plaguing the Iranian economy as a result of mismanagement and sanctions, and continues to ravage households. Washington now has three aircraft carriers in the region and is bringing in more troops and equipment as Israel expresses readiness to restart fighting, three weeks after a ceasefire began.
Iran’s authorities this week projected a hardened stance on negotiations with Washington, and pledged to fight the naval blockade of Iran’s southern waters, which the US Central Command insisted on Tuesday had “cut off economic trade going into and coming out of” the country.
Amid threats by US President Donald Trump, the Iranian government has also tried to empower its own border provinces to import essential goods by reducing red tape. It has also allocated $1bn from the sovereign wealth fund to buy food, and made a partial policy U-turn to restart offering a preferential subsidised exchange rate with the goal of reducing prices, despite concerns about corruption.
According to customs data released by state media, Iran’s non-oil trade has been negatively affected after commercial ties were disrupted or cut off as a result of the war, and critical infrastructure was bombed.
Iran’s customs authority put the total value of non-oil trade in the Iranian calendar year that ended on March 20 at close to $110bn, with $58bn going to imports. The figure was about 16 percent lower than the year before.
The volume of non-oil trade was valued at approximately $9bn for the 11th month of the calendar year ending on February 19, and $6.46bn in the final month, indicating a drop of about 29 percent in connection with the war, which started on February 28. The final month was also about 50 percent lower than the more than $13bn estimated value for last year’s corresponding month.
Part of the drop is linked with the fact that shipping has been significantly disrupted through the Strait of Hormuz as Iran and the US spar over control of the strategic waterway. The US and Israel also directed some of their thousands of strikes against ports, naval facilities, airports, and railway networks across the country.
Iran’s top steel and petrochemical producers were also extensively bombed, as were oil and gas facilities, power stations, and major industrial zones. The US and Israel have threatened to take Iran “back to the Stone Age” through systematic bombing of civilian infrastructure like power plants.
To manage the impact and preserve domestic supply, Iranian authorities have imposed temporary restrictions on exports of steel, petrochemicals, polymers and other chemicals.
The US is using its military capabilities and economic chokeholds to drive down Iran’s oil exports, a goal that it has also pursued over recent years through sanctions.
Since mid-April, the US military has been deploying its soldiers to take over or inspect ships transiting through waterways near Iran, in addition to targeting what is known as a shadow fleet of tankers used by Iran to circumvent sanctions and ship its oil.
Warships and thousands of troops could still launch a ground invasion or destructive aerial attacks against Iran’s Kharg and other critical islands, and the Trump administration expects increased pressure on Iran’s oil sector due to hampered access to export routes and supertankers keeping the oil stored on the water.
The US Treasury has been blacklisting refineries in China, the biggest buyers of Iranian crude oil, and going after the banking and cryptocurrency channels alleged to be facilitating Tehran’s oil trade, and having links to the IRGC – which Washington considers a “terrorist” organisation.
“We will follow the money that Tehran is desperately attempting to move outside of the country and target all financial lifelines tied to the regime,” said US Treasury Secretary Scott Bessent on social media.
Chinese refineries buy roughly 90 percent of Iran’s oil shipments, and imported a record 1.8 million barrels per day in March, according to Vortexa Analytics data cited by the Reuters news agency, which also said purchases were expected to slow due to worsening domestic refining and processing margins.
According to figures released by the General Administration of Customs of China, the volume of the country’s bilateral trade with Iran during the first quarter of 2026 stood at $1.55bn, down 50 percent year-on-year.
In March, the first month of the war, trade stood at $184m, which was nearly 80 percent lower than the year before and 64 percent lower than the month before. China’s imports from Iran and exports to the country were both considerably reduced as a result of the war.
The removal of the United Arab Emirates as a major trade partner and import market for Iran has also significantly affected the country’s economy, increasing its reliance on land neighbours like Turkiye and Iraq to the west and Pakistan to the east.
The UAE, a big part of the Trump-led Abraham Accords that saw multiple countries normalise relations with Israel, was heavily targeted by ballistic missiles and drones launched by Iran.
The UAE has closed down numerous Iranian institutions on its soil over the past two months, including financial facilitators, instructed Iranian citizens to leave, and has said it will take years to restore bilateral relations to previous levels.
April 29 (UPI) — The United States has sanctioned 35 entities and individuals accused of overseeing a shadow-banking network that moved tens of billions of dollars for Iran, as the Trump administration flexes Washington’s financial might amid a stalemate in peace negotiations with Tehran.
The sanctions announced Tuesday come as U.S.-Iran peace negotiations came to a halt last week after Tehran said it would not participate in talks until the United States lifted its blockade of sea-based trade to the Middle Eastern nation.
Those blacklisted by the Treasury include several private companies known as rahbars, which manage thousands of overseas companies used by Iranian banks cut off from the international financial system to execute payments for Iranian trade.
According to the Treasury, these rahbar companies coordinate with Iranian exchange houses and front companies to conduct international trade on behalf of the Islamic Revolutionary Guard Corps, Iran’s Armed Forces General Staff, the National Iranian Oil Company and other sanctioned entities.
“By dismantling these financial channels, we advance the administration’s policy in the conflict with Iran and underscore our commitment to imposing maximum pressure on Iran,” State Department spokesman Thomas Pigott said in a statement.
The punitive action was part of what the Treasury calls Operation Economic Fury, a branded escalation of President Donald Trump‘s broader maximum-pressure campaign against Iran.
Coinciding with the sanctions on Tuesday, the Treasury’s Office of Foreign Assets Control issued an alert to financial institutions over the risks they face for doing business with so-called teapot oil refineries in China, primarily in Shandong Province, that import and refine Iranian crude oil.
According to the alert, China is the largest purchaser of Iranian oil, and the Treasury has designated multiple small China-based refineries since March of last year.
“The United States will further disrupt illicit funding streams that finance Iran’s malign activities,” Pigott said.
“We will not relent in our efforts to deny Iran and its proxies the resources they use to threaten U.S. interests and regional stability.”
Trump first employed the maximum-pressure campaign strategy to coerce Iran into negotiations over its nuclear program in 2018 after unilaterally withdrawing the United States from a landmark multinational accord that sought to prevent Tehran from obtaining a nuclear weapon.
Iran then breached its commitments under the deal, enriching uranium up to 60%, far exceeding the accord’s 3.67% but below weapons-grade levels.
Trump restored the maximum-pressure campaign after returning to office in 2025, and the United States bombed three major Iranian nuclear facilities that June.
The United States and Israel have since escalated their pressure campaign, attacking Iran in strikes that triggered a war now halted by a fragile cease-fire to permit peace talks.
Iran has imposed restrictions on energy trade through the Strait of Hormuz, prompting the United States to impose a blockade of Iran’s ports in response to what it describes as Tehran holding a major share of the world’s energy supplies hostage.
Taiwan has downplayed the impact of new Chinese sanctions targeting European defense companies involved in arms sales to the island. The measures, announced by China, restrict exports of dual use goods to seven firms, marking a rare move against European entities over Taiwan related issues.
Despite the escalation, Taiwan’s Defence Minister Wellington Koo said the sanctions would not disrupt the island’s ability to procure military equipment.
Beijing has increasingly used economic and trade restrictions to respond to foreign involvement in Taiwan’s defense. While similar sanctions have frequently targeted U.S. arms manufacturers, extending them to European companies signals a broader willingness to pressure multiple partners simultaneously.
The move reflects China’s ongoing effort to isolate Taiwan internationally and deter military cooperation with the island.
Europe’s direct role in arming Taiwan has historically been limited. Major defense exports such as fighter jets have not been supplied for decades due to concerns about damaging relations with China.
However, smaller scale cooperation and component level trade have continued, making these sanctions symbolically significant even if their immediate practical impact is modest.
Taiwan relies heavily on the United States for its defense needs, but it has also worked to diversify procurement channels in recent years. According to Koo, this strategy ensures that disruptions from any single source, including sanctioned European firms, can be mitigated.
Growing support from parts of Central and Eastern Europe, particularly after Russia’s invasion of Ukraine, has also provided Taiwan with additional diplomatic and logistical avenues.
The sanctions come amid heightened global tensions and shifting alliances. China views Taiwan as its own territory and strongly opposes any foreign military assistance to the island.
At the same time, Taiwan’s security concerns have intensified, prompting it to strengthen international partnerships and defense preparedness.
China’s decision to target European companies represents an escalation in its economic statecraft, aiming to widen the cost of supporting Taiwan beyond the United States. While the immediate impact on Taiwan’s military capabilities appears limited, the move could have a chilling effect on future European involvement.
Taiwan’s confidence reflects its reliance on U.S. support and its broader diversification strategy. However, repeated sanctions and pressure campaigns could gradually narrow its options, especially if European firms become more risk averse.
For Europe, the sanctions pose a strategic dilemma between economic ties with China and growing political alignment with Taiwan and its partners. For China, they reinforce its stance on sovereignty while testing how far it can push back against international support for Taiwan without triggering broader backlash.
Overall, the episode underscores how economic tools are increasingly being used in geopolitical competition, even when their direct material impact remains limited.
With information from Reuters.
U.S. oil sanctions swings add uncertainty for markets, global trade
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The Trump administration’s January 3 military strikes opened a new era of US imperialism in Venezuela built on the plunder of the country’s resources. This interactive infographic explains Venezuela’s recent pro-business reforms, US neocolonial impositions through licenses, and the conglomerates that have already taken advantage to strike agreements.
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Rally outside a Catholic basilica in Zulia state. (Prensa Presidencial)
Mérida, April 20, 2026 (venezuelanalysis.com) – The Venezuelan government launched a “Great National Pilgrimage” to oppose economic sanctions on Sunday, April 19, coinciding with the 216th anniversary of the country’s declaration of independence.
The nationwide mobilization seeks to channel popular opposition to the US-led economic blockade into a sustained, nationwide movement.
The pilgrimage was inaugurated in three Venezuelan regions, with a calendar of marches, assemblies, and cultural activities covering the remaining 21 states before a closing event in Caracas on April 30.
In western Zulia state, Acting President Delcy Rodríguez led a rally through the streets of Maracaibo. Addressing a crowd, Rodríguez linked the historical struggle for independence to the modern-day resistance against Washington’s unilateral coercive measures.
“It is a date that marks the first cry for independence from a united people, and so, beginning with that historic date, I feel compelled to embark on this pilgrimage,” she declared to the crowd.
Venezuelan leaders have sought to highlight the impact of unilateral coercive measures on living standards and public services to push for their withdrawal.
“We want Venezuela to be free of sanctions, so that it can grow without restrictions,” Rodríguez affirmed at the Zulia rally. “I am speaking to the people of the United States, Europe, and the governments of those countries. Please stop levying sanctions against the Venezuelan people.”
In Puerto Ayacucho, Amazonas, National Assembly President Jorge Rodríguez led a parallel mobilization on Sunday. He emphasized that the pilgrimage is not merely a political event but a “spiritual and national defense” of the country’s right to self-determination. The campaign’s launch in border states highlighted the disruptions to public services that are generally more acute away from the capital and surrounding areas.
The government’s initiative was also backed by sectors of the moderate opposition. Timoteo Zambrano, deputy from the Democratic Alliance, vowed that his political faction would participate in the pilgrimage.
“[Pilgrimage] is a deeply religious term that unites the world’s religions. We are witnessing a new moment to fight together against sanctions and the blockade,” he said in a press conference in Caracas on Saturday.
For his part, Acción Democrática Secretary-General Bernabé Gutiérrez claimed that Caracas must ask the Trump administration to release proceeds from oil exports “so they reach the state coffers and allow for the solution of our problems.”
Since January, the White House has imposed control over Venezuelan crude sales, with Venezuela-owed royalties, taxes, and dividends mandated to be deposited in US Treasury-run accounts before being returned to Caracas at US officials’ discretion.
The “Great National Pilgrimage” takes place against a backdrop of nearly a decade of economic pressure from Washington. The first Trump administration launched a “maximum pressure” campaign in 2017 with the goal of triggering regime change.
US Treasury sanctions targeted multiple economic sectors, from mining to banking, and particularly targeted the oil industry, causing an estimated US $25 billion in yearly revenue losses. The blockade also effectively gridlocked Venezuela from international credit markets and saw Venezuelan foreign assets frozen and seized.
Since the January 3 US military attacks and kidnapping of President Nicolás Maduro, Caracas and Washington have fast-tracked a diplomatic rapprochement. Acting President Rodríguez has struck a conciliatory tone toward the US, recently thanking Trump and US officials for their efforts in reestablishing “cooperation.”
The US Treasury Department has maintained wide-reaching sanctions in place but issued a series of general licenses in the hydrocarbon, mining, and banking sectors, allowing Western entities to deal with Venezuelan counterparts under restricted conditions.
Edited by Ricardo Vaz in Caracas.
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The U.S. Treasury Department has extended a waiver that will temporarily ease some sanctions on Russian oil shipments just two days after Secretary Scott Bessent said Washington would not renew the exemption despite surging oil prices caused by Middle Eastern tensions.