Iran's rial fell to a fresh record low on Tuesday, with the free-market rate exceeding 2.5 million rials per U.S. dollar for the first time.

Traders in Tehran exchanged more than 2.5 million rials for one dollar, according to multiple reports tracking the parallel market. The rate hit 2.542 million rials, up 3.84 percent from the prior day, with an intraday peak of 2.548 million. This marks the latest in a string of record lows since the U.S.-Israeli military operation began in February.

The drop came just 27 days after the previous record of roughly 2.2 million rials per dollar on September 2. The currency has lost more than half its value over the past year amid sustained U.S. sanctions and a naval blockade targeting Iranian oil exports.

Iran's economy, already strained by years of international sanctions, has come under intensified pressure from the blockade and additional measures imposed since the war started. Inflation remains elevated, with year-on-year figures reaching 84.4 percent in August. Households face higher costs for imported goods, rents, and medical care, while businesses struggle with reduced access to foreign currency.

U.S. officials have described the combination of sanctions and the blockade as an economic onslaught aimed at cutting off revenue streams that sustain the regime. The policy appears to be delivering results, with the rial's steep depreciation reflecting Tehran's shrinking ability to earn hard currency from oil sales.

Indirect talks mediated by Qatar and Pakistan are underway to address reopening the Strait of Hormuz, a key chokepoint disrupted by the conflict. Iranian Foreign Minister Abbas Araghchi described the discussions as more serious in recent days, though major gaps remain on sanctions relief and oil exports.

The currency crisis underscores the broader toll of the war on Iran's economy and the effectiveness of targeted U.S. pressure in limiting the regime's financial options.