Iran’s rial has fallen to a new record low, with the currency trading above 2.5 million rials for one U.S. dollar in Tehran on Tuesday.

The latest plunge came just 27 days after the rial previously hit a record low of around 2.2 million per dollar on September 2. The currency has continued to set new lows since the war began in February.

The sharp decline comes as Iran faces mounting economic pressure from the conflict, sanctions, restrictions on oil exports, and disruption to trade.

The currency weakened further as Tehran and Washington continued indirect discussions over a possible reopening of the Strait of Hormuz, a major route for global oil shipments.

Iranian Foreign Minister Abbas Araghchi said the current discussions were focused on the Strait of Hormuz, with Qatari mediators involved in communicating between the two sides. Recent reports indicate that the negotiations remain focused on finding a way to reopen the waterway while addressing broader disagreements.

The latest currency collapse highlights the economic pressure facing Iran as restrictions on its oil trade and access to international markets continue.

The rial had already fallen to around 2.44 million per dollar in the open market on Monday before crossing the 2.5 million mark on Tuesday.

The new record comes as the economic consequences of the conflict remain closely tied to developments around the Strait of Hormuz, with the outcome of the US-Iran discussions potentially affecting Iran’s trade and oil exports.