The Meltdown of the Iranian Rial - Robin J Brooks - Substack

Theory Briefing

• The US reimposed its sanctions blockade on July 14, and this iteration is described as more onerous than the first, putting fresh pressure on the rial.
• The rial's collapse is framed as a live test of whether economic pressure alone can force a government's hand.
• Currency meltdowns can outpace official policy responses, leaving ordinary citizens bearing the cost before any political deal is struck.
• The severity of the new blockade compared to the previous round raises the question of whether there is a breaking point for sanction-hit economies.