Iran's currency fell to a new record low on Tuesday, with traders in Tehran exchanging more than 2.5 million rials for one US dollar. The latest slide came just 27 days after the rial touched its previous record low of 2.2 million to the dollar on September 2.
The currency has repeatedly fallen to new lows since the war began in February, reflecting mounting economic pressure on Iran.
Tehran says Hormuz negotiations are 'more serious'
At the same time, Iran's top diplomat said indirect negotiations with the United States over reopening the Strait of Hormuz had become “more serious”.
Foreign Minister Abbas Araghchi told Iranian media late on Monday that the “current focus is solely on the Strait of Hormuz”.
Araghchi made the remarks shortly before leaving New York, where he had attended last week's UN General Assembly, and after meeting Pakistani and Qatari mediators.
He said Qatari intermediaries were expected to approach the US side again as part of the diplomatic effort.
“They are set to raise the matter with the American side once more, after which the final US response will be conveyed to us,” Araghchi said. “If there is a response, the Qataris will convey it to us and a decision will be made in Tehran on that basis.”
Mediators working to reopen key waterway
US and regional officials have confirmed to The Associated Press that mediators are working with Iran and the US to try to broker an agreement that would end the fighting and reopen the strait.
The Strait of Hormuz remains a crucial focus of the negotiations because of its importance to global shipping and energy supplies. Iran's efforts to reopen the waterway come as its economy faces increasing pressure and the rial continues to weaken.
The latest diplomatic push follows an Iranian proposal to reopen the strait within seven days under certain conditions, including changes to US sanctions and the naval blockade. US President Donald Trump rejected that proposal over the weekend, though mediation efforts have continued.
Iran's Revolutionary Guard calls for US protests
Meanwhile, Iranian Revolutionary Guard Corps chief spokesman Gen Hossein Mohebbi on Tuesday called on Americans to take to the streets and protest the conflict.
The comments came as the rial reached another record low and diplomatic efforts over the Strait of Hormuz continued through regional intermediaries.