Iran’s currency tumbled to a new record low on Tuesday, with exchange rates surpassing 2.5 million rials per U.S. dollar in Tehran, signaling deepening economic turmoil amid ongoing regional conflict. This sharp decline marks a continuation of the rial’s steady fall since the outbreak of fighting in the Middle East earlier this year, following a previous record low of 2.2 million rials per dollar set just weeks ago on September 2.

The Iranian economy has faced sustained pressure due to long-standing international sanctions, but recent developments—including a U.S. naval blockade targeting Iranian oil exports and additional sanctions imposed since the conflict began in February—have accelerated the currency’s collapse.

In parallel with the economic decline, Iranian officials signaled progress in diplomatic channels focused on the Strait of Hormuz, a strategic maritime passage critical to global oil shipments. Iranian Foreign Minister Abbas Araghchi said on Monday that indirect talks with the United States, facilitated by Pakistani and Qatari mediators, had become “more serious” and remained concentrated on resolving tensions around the strait. Araghchi, speaking just before leaving New York where he attended the United Nations General Assembly, indicated that the mediators were poised to present Tehran’s proposals to the U.S. side and expected a response that would inform upcoming decisions in Iran.

U.S. and Iranian officials have confirmed ongoing mediation efforts aimed at ending hostilities and reopening the strait, despite earlier setbacks. Last week, President Donald Trump rejected an Iranian offer to resume navigation through the strait within seven days, which had been contingent on lifting the blockade of Iranian ports, releasing frozen Iranian assets, and waiving sanctions on oil sales.

Complicating tensions in the region, the United Kingdom Maritime Trade Operations reported an attack on a cargo vessel passing through the Strait of Hormuz on Monday. The vessel sustained a fire caused by an “unknown projectile,” although the blaze was quickly extinguished and all crew members remained safe. The damaged ship continued its voyage, with no party immediately claiming responsibility.

At the same time, the Iranian Revolutionary Guard Corps issued a stark appeal to the American public, urging citizens to pressure their government to end U.S. military involvement in Iran. Gen. Hossein Mohebbi, the Guard’s chief spokesman, read a letter during a Tehran news conference calling on Americans to protest the war ahead of the November 3 midterm elections. He asserted that the conflict could only conclude with a U.S. acknowledgment of defeat and withdrawal from the Middle East.

The remarks reflect growing war-weariness in the United States, where economic concerns such as rising gasoline prices—exacerbated by the conflict—loom over the electorate. Despite this, Trump and senior administration officials remain confident that Iran’s strained economy limits Tehran’s capacity to sustain prolonged conflict, predicting the war will conclude soon, potentially after the midterms.

Separately, a vital oil pipeline in Saudi Arabia, previously shut down due to an attack earlier this month, has resumed operations, according to a Saudi government official who spoke on condition of anonymity. The pipeline is reportedly functioning near pre-attack capacity, with full restoration expected within weeks.