Iran’s currency strengthened modestly on Tuesday, recovering from historic lows as anticipation grew over high-level indirect talks with the United States scheduled to take place this weekend in Oman.
The rial, which hit a record low of 1,050,000 per US dollar last month, bounced back to about 960,000 rials on Tuesday amid growing anticipation of renewed diplomacy between Tehran and Washington.
Iranian government spokesperson Fatemeh Mohajerani confirmed on Tuesday that the talks will be held indirectly, mediated by Oman’s Foreign Minister Badr bin Hamad Al Busaidi. “In the negotiation, what is important for the people and the national interests will be our focus,” she said.
The Iranian delegation will be led by Foreign Minister Abbas Araghchi, while the US side will be represented by Donald Trump’s Mideast envoy, Steve Witkoff, according to Iranian and US media reports.
While US President Donald Trump has said the talks will be direct and at a senior level, Iranian state-affiliated media said otherwise.
Nournews, a site close to Iran’s Supreme National Security Council, described Trump’s comments as part of a “psychological operation” meant to shift blame and shape public perception.
The rial’s gains follow a period of sharp decline, triggered by the absence of negotiations, ongoing US sanctions and Trump's 'maximum pressure' policy on Iran, and escalating regional tensions fueled by Iran's allies.
Inflation in food and other essentials has soared, with local producers citing rising packaging and transport costs as major drivers. Over one third of Iranians now live below the poverty line in the midst of the worst economic crisis since the founding of the Islamic Republic in 1979.
Iran’s currency has halved in value since President Masoud Pezeshkian took office in August.
