TEHRAN, Iran (AP) — Iran’s rial slid further Monday to a new record low of more than 1.3 million to the U.S. dollar, deepening the currency’s collapse less than two weeks after it first breached the 1.2-million mark amid sanctions pressure and regional tensions.
Currency traders in Tehran quoted the dollar above 1.3 million rials, underscoring the speed of the decline since Dec. 3, when the rial hit what was then a historic low.
The rapid depreciation is compounding inflationary pressures, pushing up prices for food and other daily necessities and further straining household budgets, a trend that could be intensified by a gasoline price change introduced in recent days.
Iran on Saturday added a third gasoline price tier, raising the cost of full bought beyond monthly quotes at 50,000 rials (4 U.S. cents). It is the first major adjustment to fuel pricing since a price hike in 2019 that sparked nationwide protests and a crackdown that reportedly killed over 300 people.
Under the revised system, motorists continue to receive 60 liters a month at the subsidized rate of 15,000 rials per liter and another 100 liters at 30,000 rials, but any additional purchases now cost more than three times the original subsidized price. While gasoline in Iran remains among the cheapest in the world, economists warn the change could feed inflation at a time when the rapidly weakening rial is already pushing up the cost of food and other basic goods.
The fall comes as efforts to revive negotiations between Washington and Tehran over Iran’s nuclear program appear stalled, while uncertainty persists over the risk of renewed conflict following June’s 12-day war involving Iran and Israel. Many Iranians also fear the possibility of a broader confrontation that could draw in the United States, adding to market anxiety.
Iran’s economy has been battered for years by international sanctions, particularly after Donald Trump unilaterally withdrew the United States from Tehran’s nuclear deal with world powers in 2018. At the time the 2015 accord was implemented — which sharply curtailed Iran’s uranium enrichment and stockpiles in exchange for sanctions relief — the rial traded at about 32,000 to the dollar.
After Trump returned to the White House for a second term in January, his administration revived a “maximum pressure” campaign, expanding sanctions that target Iran’s financial sector and energy exports. Washington has again pursued firms involved in trading Iranian crude oil, including discounted sales to buyers in China, according to U.S. statements.
Further pressure followed in late September, when the United Nations reimposed nuclear-related sanctions on Iran through what diplomats described as the “snapback” mechanism. Those measures once again froze Iranian assets abroad, halted arms transactions with Tehran and imposed penalties tied to Iran’s ballistic missile program.
Economists warn that the rial’s accelerating decline risks feeding a vicious cycle of higher prices and reduced purchasing power, particularly for staples such as meat and rice that are central to Iranian diets. For many Iranians, the latest record low reinforces concerns that relief remains distant as diplomacy falters and sanctions tighten.
A man fills his car at a gas station in Tehran, Iran, Saturday, Dec. 13, 2025. (AP Photo/Vahid Salemi)
NEW YORK (AP) — Walmart delivered another quarter of impressive sales with speedy deliveries and low prices becoming a strong magnet for people across the income spectrum that are spending more on almost everything, particularly gasoline.
Yet like other major retailers posting financial results this week, Walmart was cautious about the rest of the year given the current economic uncertainty. On Thursday, it issued a forecast for the current quarter that was weaker than what Wall Street had been expecting.
Shares slipped about 7% Thursday.
Walmart has resonated with many Americans who are increasingly careful about where they spend their money as inflation takes a bigger bite out of paychecks, notably gasoline which has soared since the start of the Iran war in late February. Walmart can serve as a barometer of consumer spending given its vast customer base. More than 150 million customers are on its website or in its stores every week, according to Walmart.
One telling shift during the quarter that captures the stress many Americans are feeling: The number of gallons that customers put in their cars during visits to U.S. Walmart and Sam’s Club gas stations fell below 10 for the first time since 2022, which was the midst of the COVID-19 pandemic.
“That’s an indication of stress,” said Chief Financial Officer John David Rainey.
Walmart touted strong sales that were fueled by online shopping on Thursday.
Comparable sales at U.S. Walmart stores rose 4.1% during the three-month period ended April 30. Walmart’s U.S online sales rose 26%, the company said.
Walmart’s promise of lower prices, faster delivery and a refresh of its merchandise has attracted wealthier shoppers. The biggest gains in market share for Walmart are coming from households with annual income over $100,000. That shift is taking place as lower-income shoppers become more entrenched in what economists collectively call a K-shaped economy.
“We see with our customers that the high-income customer is spending with confidence into many categories, while the lower income consumer is more budget conscious and perhaps navigating financial distress,” Rainey told analysts on Thursday.
Rainey told analysts that higher fuel prices took a bite out of profits as it was forced to absorb higher transportation costs. And while the company is focused on offering low prices, Walmart may raise prices later if fuel costs remain high, he said.
U.S. retailers have spent months navigating an uncertain economic environment, from President Donald Trump’s tariffs to the impact of soaring gasoline prices due to the war. The average price for a gallon of regular gasoline raced higher this week and did so again overnight. Gasoline prices are about 45% above where they were at this time last year.
Based on quarterly financial reports from Walmart, Target, Home Depot, Lowe's and TJX, shoppers are cautious but still spending, helped by more generous tax refunds. Yet there is a widespread belief among economists that once those refunds dry up, shoppers will pull back on spending. Consumer spending is the dominant economic engine for the U.S., and retreat would have broad implications for the U.S.
Target reported the largest jump in comparable sales in four years Wednesday, but a cautious outlook overshadowed rather convincing evidence that changes under the company’s new CEO are landing solidly with customers. Target raised its annual revenue outlook Wednesday, but it was still below the pace of its first quarter this year.
The nation’s two largest home improvement retailers Home Depot and Lowe’s reported strong sales, but both companies said that customers are putting off larger home projects.
“I think, overall, this has been the most difficult housing market that I’ve faced in this business since the financial crisis,” Lowe’s CEO Marvin Ellison said this week.
Walmart, based in Bentonville, Arkansas reported first-quarter earnings of $5.33 billion, or 67 cents, for the quarter ended April 30. Adjusted per-share results were 66 cents, matching the 66 cents that analysts expected, according to FactSet.
For the year-ago quarter, the company reported net income of $4.48 billion, or 56 cents per share.
Sales rose 7.3% to $177.75 billion in the fiscal first quarter, above the $174.84 billion that analysts predicted.
Walmart said higher fuel prices took a bite out of profits as it was forced to absorb higher transportation costs.
The company highlighted its speedier deliveries, which is driving more shoppers to buy more often. Rainey said that roughly 60% of U.S. online deliveries arrive at customers' homes in 30 minutes or less.
For the second quarter, Walmart expects sales to be 4% to 5% higher than the same period a year ago. It also expects per-share profit to be between 72 cents and 74 cents. Analysts had been projecting per-share earns of 75 cents on sales of $186.2 billion, according to FactSet.
Walmart stuck to the annual guidance that it issued in February.
Drones operated by Zipline leave base to make deliveries from a Walmart store in Pea Ridge, Ark., Friday, Sept. 26, 2025. (AP Photo/Charlie Riedel)
