One US dollar now costs 2 million rials in Iran, and here’s what it can buy

What the report says

Al Jazeera reported on August 26, 2026, that Iran’s rial has fallen to a record low on the free market, passing 2 million rials to one US dollar. The article says the currency slump is unfolding amid long-running sanctions and the economic fallout of the US-Israel war on Iran, which the report says has deepened pressure on prices, trade and household incomes.

To show the impact on daily life, Al Jazeera compared street prices in Tehran before the war and at the time of reporting. The outlet said basic goods now buy much less than they did previously, with sharp increases in the cost of tomatoes, chicken, cooking oil, insulin, paracetamol and baby formula. The report described prices as volatile and noted that figures were based on average values.

The article also quoted several Iranians, including a mother in Tehran who said her family is focused on getting through the month, a retail worker who said sales have fallen and businesses face mounting strain, and a fisher in Hormozgan who said grocery costs have jumped sharply while income has declined. Their accounts illustrated how inflation is changing shopping habits, healthcare access and household budgeting.

Al Jazeera said war damage, disrupted production, import and export constraints, sanctions and stagnant wages have all contributed to the squeeze. More broadly, the report suggested that the central issue for many Iranian families is whether monthly pay can still cover food, housing and other necessities.