Explosive Surge in Currency and Gold Prices in Iran

Iran’s currency market saw a sharp spike as the U.S. dollar jumped by more than 26,000 tomans within just two days. On Wednesday, April 29, it briefly entered the 182,000 toman range before easing slightly later in the day to around 180,000 tomans.

The rally began a day earlier, when the dollar crossed the 160,000 mark and continued climbing into the morning session, touching 171,000 tomans. As trading progressed in Tehran, the rate kept rising, peaking at 182,000 tomans. Gold prices moved in tandem with the currency surge. The price of 18-karat gold increased by over 3 million tomans in a single day, crossing 20.2 million tomans per gram. The Bahar Azadi gold coin also saw a sharp rise, gaining 17 million tomans compared to Tuesday to trade above 207 million tomans.

The surge has been partly driven by tensions around the Strait of Hormuz and reports that Donald Trump has ordered preparations for a long-term naval blockade of Iran. However, domestic economic pressures appear to be playing a larger role in weakening the national currency. In the past two months, repeated internet shutdowns and market closures disrupted trading activity, making it difficult to establish a real market rate. During this period, state-run media and official monitoring bodies reported dollar prices that were significantly lower than actual market levels.

At the same time, declining production, rising liquidity, and the ongoing inflation surge have added to economic strain. U.S. pressure, including threats of a naval blockade and efforts to disrupt the IRGC’s “shadow banking system” used to bypass sanctions, has also affected oil revenues and access to foreign exchange. With concerns growing over limited foreign reserves, demand for the dollar and gold as safe-haven assets has surged further. This situation is unfolding even as officials from the Islamic Republic continue to say that imports, exports, and oil sales are proceeding normally under war-time conditions.