Trump’s withdrawal from a landmark 2015 nuclear agreement in May had already spooked investors and triggered a run on the Iranian rial long before nuclear-related sanctions went back into force.
“I feel like my life is being destroyed. Sanctions are already badly affecting people’s lives. I can’t afford to buy food, pay the rent…” said a construction worker on the streets of the capital.
The sanctions reimposed today — targeting access to US banknotes and key industries such as cars and carpets — were unlikely to cause immediate economic turmoil.
Iran’s markets were actually relatively buoyant, with the rial strengthening by 20 per cent since Sunday after the government relaxed foreign exchange rules and allowed unlimited, tax-free gold and currency imports.
But a second tranche to…