Iran warns new US sanctions will bring 'consequences' as rial hits record low
Iran’s currency hit a record low on Monday after the rial plunged to 2.02 million to the US dollar as trading opened, hours before Washington said it would impose stronger sanctions on Tehran.
Source: Associated Press · August 24, 2026 at 7:31 PM · AI-assisted report
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BEIJING, 25 AUGUST 2026 —
Iran’s currency hit a record low on Monday after the rial plunged to 2.02 million to the US dollar as trading opened, hours before Washington said it would impose stronger sanctions on Tehran.
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Foreign Ministry spokesperson Esmail Baghaei warned that any escalation by Washington would have consequences and that Iran’s hands were not tied. “Any escalation of this situation will undoubtedly bring about consequences,” he said. “Our hands are not tied.” The new measures follow US and Israeli strikes on Iran on Feb 28 and come as Washington threatens secondary sanctions on countries that continue to trade with Iran.
China, Iran’s biggest oil buyer, rejected the sanctions approach. Foreign Ministry spokesperson Lin Jian said in Beijing that additional pressure “will not help resolve the issue” and would only worsen tensions. “They will only exacerbate tensions and escalate the situation, which is in no one’s interest,” he said. Before the US-Israeli war, China imported more than 80% of Iran’s oil.
Iran has held talks with Oman on jointly managing the Strait of Hormuz, through which about a fifth of the world’s traded oil passed before the war. Tehran demands lifting the US naval blockade, withdrawing US forces and reparations before it reopens the waterway.
Syria and Israel met in Jordan over the weekend to discuss security after Israel struck an air base in northern Syria last week. Syrian state news agency SANA said the talks focused on restarting negotiations for a future security agreement.
Syria asserted its right to develop its armed forces and forge alliances, calling for the withdrawal of Israeli forces from a buffer zone in southern Syria occupied since December 2024 and reiterating its claim to the Golan Heights.
A crude oil tanker was struck by an unknown projectile 63 nautical miles west of Yanbu in Saudi Arabia’s Red Sea, the British military said. The United Kingdom Maritime Trade Organization said a fire broke out on the main deck. There were no casualties. The Iran-backed Houthi rebels in Yemen have attacked Saudi tankers in recent weeks but did not claim this strike and did not respond to requests for comment.
In Gaza, Israeli strikes killed at least four people, including two children, hospital officials said. In Bureij refugee camp, a strike hit a building after residents said they received an evacuation warning. A four-year-old child was killed after his family could not flee, according to Awda Hospital. His mother and sister were wounded. The Israeli military said it struck Hamas weapons storage facilities in mosques after issuing warnings but provided no evidence.
Israel also said it killed a militant affiliated with Hamas’ special forces unit in an overnight airstrike. Since a ceasefire took effect last October, at least 1,288 Palestinians have been killed, Gaza’s health ministry said. Its figures are generally considered reliable by the international community.
In the occupied West Bank, a 16-year-old boy from the Israeli settlement of Avigayil was arrested in connection with the beating of a 61-year-old Palestinian man with a pipe. The Palestinian remains hospitalized. Israeli settlers have besieged Qusra village for more than two weeks, preventing inhabitants from leaving. Israeli soldiers have encouraged residents to evacuate, but police have not announced arrests. Loui Ridi, visiting from Ohio, said he cannot move freely.
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