Persistent US sanctions on Iran's energy sector and financial system, combined with elevated domestic inflation and limited access to foreign reserves, have driven ongoing depreciation of the Iranian rial against the USD. In May 2026, unofficial market rates approached or exceeded 1.7 million rials per dollar amid protests over living costs and central bank leadership changes from late 2025. Diplomatic talks with the United States, including mediated nuclear and sanctions discussions plus a temporary April ceasefire, introduced potential for relief but yielded no verified major easing by late May. Traders monitor oil export volumes, any new sanctions actions, and negotiation outcomes within the resolution window as key variables that could accelerate or moderate further weakening.