Iran's currency loses value as Israel hits Hezbollah hard

The rial was trading at 612,000 to the US dollar on Saturday, compared with 592,000 on September 20, when Hezbollah began to suffer mass casualties as a result of exploding pagers and walkie-talkies. As Israeli air strikes intensified in Lebanon earlier this week and culminated in the reported killing of Hezbollah leader, Hassan Nasrallah, the rial dipped further.

Since 2018, when the US withdrew from the JCPOA nuclear deal and imposed sanctions on Iran’s oil exports and international banking, the rial has lost 15 times its value. In the past three years alone, it has depreciated by 50%.

This sharp devaluation has coincided with soaring inflation, now hovering between 40-50%, pushing tens of millions of Iranians into poverty and creating a potentially volatile public mood.

The Iranian government has been quietly signaling an interest in new negotiations with the West this month to reduce sanctions, but so far, the US and its European allies maintain that only a genuine change in behavior will lead to talks."

While Reuters cited unnamed sources as saying that Khamenei has been moved to secure location, the Supreme Leader issued a massage Saturday, calling on Muslims "to stand by the people of Lebanon and the proud Hezbollah with whatever means they have and assist them in confronting the ... wicked regime (of Israel)".

"Zionist criminals should know that they are far too insignificant to inflict any serious damage on the strong foundation of Hezbollah in Lebanon. All the resistance forces in the region stand alongside and support Hezbollah. The fate of this region will be determined by the resistance forces, with Hezbollah at the forefront,” he said in his message.

He added that "the Zionist regime had failed to learn from its year-long criminal war in Gaza" and was now repeating the same mistakes in Lebanon.

The Israeli military said on Saturday it had killed Nasrallah in an airstrike on the group's central headquarters in the southern suburbs of Beirut on Friday. However, uncertainty persists about the status of Hezbollah's leader as no official reaction has been made by the group or the Islamic Republic.

The Israeli military "eliminated ... Hassan Nasrallah, leader of the Hezbollah terrorist organization," Israeli army spokesperson Avichay Adraee wrote in a statement on X.

Later, in a briefing with reporters the IDF spokesman confirmed the killing of Hezbollah chief Hassan Nasrallah and added: "I want to say this very clearly—Nasrallah was one of the world's strongest and most influential terrorists, and one of the terrorists with the most capabilities in the world. He was a real threat, with the blood of thousands of people on his hands."

Government-controlled media in Tehran was simply repeating the news about the IDF announcement, while large banners were installed in the capital proclaiming “Hezbollah is alive.” There have been no explicit Iranian threats about a potential retaliation against Israel, although some hardliners have voiced the need for revenge.

European aviation authorities have advised airlines to avoid Lebanese and Israeli airspace for the next month amid the escalating conflict between Israel and Hezbollah.

The European Commission and the European Union Aviation Safety Agency (EASA) warned of “an overall intensification of airstrikes and degradation in the security situation,” recommending airlines "not to operate within the airspaces of Lebanon and Israel at all flight levels." This advisory is in effect until October 31.

In his address following the IDF's report on the death of Hezbollah Chief Hassan Nasrallah, Iran's Supreme Leader Ali Khamenei condemned the Israeli attacks in Lebanon, calling them further proof of "the foolish policies" of the leaders of the "usurping regime." He remarked that "the Zionist regime had failed to learn from its year-long criminal war in Gaza" and was now repeating the same mistakes in Lebanon.

Khamenei warned that the "Zionist regime" was "too insignificant to inflict any significant damage on the strong foundation of Hezbollah in Lebanon." He stressed that the entire "Resistance Front"—a term used to refer to Iranian-backed groups across the region—remains united in support of Hezbollah, declaring that "the fate of this region will be determined by the Resistance forces, with Hezbollah at their forefront."

Lebanon's Ministry of Transport instructed an Iranian aircraft to avoid entering its airspace after Israel warned Beirut's air traffic control that "force" would be employed if the plane attempted to land, according to a source at the ministry who spoke with Reuters.

Earlier, Intelli Times reported that Israel infiltrated Beirut's control tower, warning it would block the landing of Iranian Qeshm Air flight QFZ9964. The plane has since canceled its landing and is returning to Iran.