Iran economy crisis with currency plummeting to new low as Tehran marred by sanctions

Ali Khamenei is the Supreme Leader of Iran overseeing economic ruin (Image: Getty )

The economy of Iran is in free fall after years of war and sanctions have sent the local currency spiralling towards worthlessness - with a staggering 800,000 for every £1.

The Islamic Republic, ruled over ruthlessly by the Supreme Leader Ali Khamenei, has attacked Israel directly and indirectly this year, by firing rockets and supporting Hezbollah and Hamas terrorists.

Iranian leaders have also supplied President Vladimir Putin's Russia with deadly Shahed drones, which have been used against civilian targets during the illegal invasion of Ukraine.

But recent events have not gone in favour of the Iranian regime, as Israel virtually wiped out Hezbollah and the country's ally President Bashar al-Assad was deposed this month in Syria.

Russia too is preoccupied with a huge offensive in eastern Ukraine, as it tries to seize more land before the inauguration of US President-elect Donald Trump.

The rial is trading at around 780,000 to the dollar (Image: Getty )

An energy crisis has also gripped the nation this winter, with the regime forced to close schools, universities and government offices because of power outages and blackouts.

On the streets of Iran this global turmoil, coupled with ongoing US, UK and EU-backed sanctions, means that even the country's economy minister was forced to admit that the local currency, the rial, had significantly devalued.

According to news site Iran Insight, Abdolnasser Hemmati said that the rial should be trading around 73,000 per dollar, but this figure rocketed to a dizzying 780,250 on Monday, December 23.

Mr Hemmati said that the official trading figure of 73,000 "assumed normal economic conditions and stable political and security situations".

Iran has attacked Israel directly and backed terrorists attacking the Jewish state (Image: Getty )

He said: “Given 30% inflation, it is impossible to maintain a stable exchange rate."

Euronews reports Iran's Central Bank often floods the market with other currencies in an attempt to improve the exchange rate.

In a recent television interview, the Central Bank Governor Mohammad Reza Farzin said that around £175million worth of dollars had been injected into the economy so far.