The Iranian economy shrank by 10% and saw total export revenues vanish as volatility swept the foreign exchange market on October 2. The rial fell to an all-time low of 2.62 million per US dollar, following a second consecutive day of declines. Data from the Iran Central Bank shows annual inflation has climbed to 89.8% and food inflation has reached 128%, while the minimum monthly wage has dwindled to approximately $63 at the open-market rate. This collapse has left residents struggling to afford basic groceries as prices for items such as soda and cake rise weekly.

US Treasury Secretary Scott Bessent attributed the currency's slide to "Operation Economic Outcast," a pressure campaign intended to degrade Tehran's ability to fund militant groups and develop nuclear weapons. While President Masoud Pezeshkian has sought to stabilize the economy through diplomacy, the hardline Kayhan newspaper urged the government on Thursday to abandon hopes of Western promises and instead adopt a "full wartime posture" in the economic and diplomatic spheres.