{"id":1423,"date":"2026-06-18T14:07:28","date_gmt":"2026-06-18T14:07:28","guid":{"rendered":"https:\/\/sotnews.agency\/?p=1423"},"modified":"2026-06-18T14:07:28","modified_gmt":"2026-06-18T14:07:28","slug":"rial-rebounds-and-stocks-soar-but-iranians-still-grapple-with-high-prices-us-israel-war-on-iran-news","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=1423","title":{"rendered":"Rial rebounds and stocks soar, but Iranians still grapple with high prices | US-Israel war on Iran News"},"content":{"rendered":"
\n
\n \t<\/i> Read Time:<\/span>5 Minute, 33 Second <\/div>\n\n <\/div>


\n<\/p>\n

\n

The value of Iran\u2019s currency has risen by more than 15 percent<\/a> against the US dollar, and its stock market has shattered records in the wake of the memorandum of understanding agreed between the United States and Iran on Sunday.<\/p>\n

However, Iranians suffering for years from extremely high inflation and a plunging rial have found little economic relief as the prices of basic goods, such as food, remain high despite the diplomatic breakthrough.<\/p>\n

\n

Recommended Stories <\/h2>\n

list of 4 items<\/span>end of list<\/span><\/section>\n

The Iranian economy has suffered due to decades of US sanctions. The economic crisis was exacerbated after the US and Israel launched a war against Iran on February 28. As subsequent US naval blockade on Iranian ports further added to the misery of Iranians.<\/p>\n

In Ferdowsi Street, the beating heart of Tehran\u2019s foreign exchange market, the scene on Thursday was a stark departure from the panic of recent months. Exchange office boards flashed rapidly changing numbers as foreign currencies, led by the dollar, took a sharp dive.<\/p>\n

\u201cWe closed our doors just hours before the official announcement of the US-Iran understanding at a rate of 1.8 million rials to the dollar,\u201d Amir, a 35-year-old exchange office worker who asked to remain anonymous, told Al Jazeera. \u201cNow it has fallen to 1.54 million rials, and we expect further declines.\u201d<\/p>\n

Amir noted a significant increase in sales volumes although buyers remained scarce as many anticipated the rial would strengthen further, potentially dropping to 1.4 million to the dollar or lower.<\/p>\n

The recent gains mark a sharp turnaround. After the outbreak of the war, the exchange rate jumped to a historic peak of 1.9 million rials (190,000 tomans) to the dollar in March before settling at about 1.685 million just before recent attacks carried out despite a ceasefire.<\/p>\n

A disconnect in the grocery aisles<\/h2>\n

Despite the rial\u2019s recovery, a walk through Tehran\u2019s grocery stores reveals a starkly different reality. For Iranians grappling with the economic fallout of crippling sanctions and the US naval blockade, the diplomatic thaw has yet to lower the cost of living.<\/p>\n

\"Shoppers
Shoppers browse for fresh produce at a market in Tehran. Consumers report that despite the rial\u2019s recovery, prices for basic food items and other necessities remain stubbornly high [Rasol Alhaei\/Al Jazeera]<\/figcaption><\/figure>\n

Reza, a 42-year-old Tehran resident, told Al Jazeera that prices for daily staples like milk, cheese, cooking oil and flour remain unchanged. \u201cThey say the dollar dropped, but my shopping basket costs the same as last week,\u201d he said. \u201cThis means the agreement hasn\u2019t reached our pockets yet.\u201d<\/p>\n

From behind the cash register, 55-year-old shop owner Ramin echoed his customer\u2019s frustration. He explained that while the government continues to distribute subsidised goods like bread, the fluctuations of the free-market dollar do not immediately impact basic food prices.<\/p>\n

The value of the dollar on the free market varies from the official exchange rate.<\/p>\n

Pointing to a shelf of imported goods, another shopkeeper named Karim noted that items like shampoo, toothpaste and laundry detergent are still locked at inflated prices.<\/p>\n

\u201cDistributors say they bought these goods two months ago at the old dollar rates,\u201d Karim explained. \u201cPrices will remain high until the old stock runs out and new goods enter at the lower exchange rates.\u201d He estimated it would take at least two weeks for the market to adjust, meaning Iranians will continue to face compounding inflation in the interim.<\/p>\n

Euphoria on the trading floor<\/h2>\n

While Main Street struggles, Tehran\u2019s stock market is experiencing an unprecedented boom amid expectations of improved economic conditions. The trading floor has been awash in green since the initial leaks of the Washington-Tehran agreement emerged.<\/p>\n

On Monday, the main index jumped by a record-breaking 161,000 points in a single session, marking the highest-ever influx of cash from individual investors.<\/p>\n

By Tuesday, the market continued its staggering ascent, climbing another 112,000 points to cross the psychological barrier of 5 million, ultimately settling at a historic high of 5.1 million.<\/p>\n

\"A
A screen displays a sea of green on the Tehran Stock Exchange. The market shattered records, crossing the 5 million mark after the announcement of the US-Iran deal [Rasol Alhaei\/Al Jazeera]<\/figcaption><\/figure>\n

Saeed, a 40-year-old investor, called it a \u201chistoric day\u201d. He noted that investors are rushing to buy shares in the energy and petrochemical sectors, betting heavily on the resumption of exports and the reopening of global markets.<\/p>\n

However, Saeed remained cautiously optimistic. \u201cThe stock market is often driven by rumours,\u201d he warned. \u201cI don\u2019t want to repeat the experience of the 2015 nuclear deal when the market soared and then collapsed after the US withdrawal.\u201d<\/p>\n

He was referring to US President Donald Trump\u2019s 2018 withdrawal from the agreement, under which Iran agreed to restrictions on its nuclear programme in exchange for sanctions relief.<\/p>\n

Stagnation in real estate and electronics<\/h2>\n

The wait-and-see approach in effect has paralysed other sectors of the economy. In central Tehran\u2019s electronics hubs, 38-year-old shop owner Reza reported that while the prices of imported appliances have dropped in tandem with the dollar, sales have stalled because customers are holding out for steeper discounts.<\/p>\n

A similar freeze has gripped the housing market. Nasrin, a 36-year-old real estate agent in northern Tehran, observed that a recent price surge that accompanied the initial truce has now given way to stagnation. Many property owners are clinging to inflated prices, seemingly unaware that the market dynamics have shifted, bringing property transactions to a virtual standstill.<\/p>\n

\u2018Not a magic wand\u2019<\/h2>\n

For macroeconomic experts, the mixed market signals are entirely expected. Hossein Selahvarzi, the former head of the Iran Chamber of Commerce, Industries, Mines and Agriculture, cautioned that the new agreement is \u201cnot a magic wand\u201d capable of instantly fixing years of structural issues in the economy.<\/p>\n

While the war severely damaged Iran\u2019s infrastructure, Selahvarzi emphasised that the roots of the country\u2019s economic malaise were firmly planted well before the bombing began.<\/p>\n

\u201cWar is the enemy of investment, production, trade and public welfare,\u201d Selahvarzi told Al Jazeera. He warned against the analytical mistake of believing that a peace memorandum alone would revive the economy.<\/p>\n

\u201cEnding the military confrontation does not necessarily mean the beginning of economic prosperity,\u201d he said, stressing that restoring stability to the business environment remains the country\u2019s most urgent priority.<\/p>\n

\u201cWhat we have before us is a limited and fragile opportunity to correct course and rebuild the economy, and this opportunity could be lost quickly if not managed correctly.\u201d<\/p>\n<\/div>\n


\n
Source link <\/a><\/p>\n

\n
\n \n
\n \n \"Happy\"\n <\/a>\n
\n Happy <\/div>\n
\n 0<\/span>\n \n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n
\n \n \"Sad\"\n <\/a>\n
\n Sad <\/div>\n
\n 0<\/span>\n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n
\n \n \"Excited\"\n <\/a>\n
\n Excited <\/div>\n
\n 0<\/span>\n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n
\n \n \"Sleepy\"\n <\/a>\n
\n Sleepy <\/div>\n
\n 0<\/span>\n \n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n
\n \n \"Angry\"\n <\/a>\n
Angry<\/div>\n
\n 0<\/span>\n 0<\/span> %<\/span>\n \n <\/div>\n <\/div>\n\n
\n \n \"Surprise\"\n <\/a>\n
Surprise<\/div>\n
\n 0<\/span>\n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n <\/div>\n <\/div>\n\n ","protected":false},"excerpt":{"rendered":"

The value of Iran\u2019s currency has risen by more than 15 percent against the US dollar, and its stock market has shattered records in the wake of the memorandum of understanding agreed between the United States and Iran on Sunday. However, Iranians suffering for years from extremely high inflation and a plunging rial have found…<\/p>\n","protected":false},"author":1,"featured_media":1424,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_2277560469115098_106292521332774":"","twitter_aToxNzczMzI3Njk4OTg4ODUxMjAxOw==_1773327698988851200":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[11,8],"tags":[],"class_list":{"0":"post-1423","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-international-news","8":"category-news"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/1423","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1423"}],"version-history":[{"count":0,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/1423\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/media\/1424"}],"wp:attachment":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1423"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1423"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1423"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}