The Iranian rial fell sharply on Wednesday as markets braced for the reimposition of UN sanctions under the snapback mechanism, with the US dollar trading above 1,074,000 rials on the open market, more than 2% higher than a day earlier.

Sterling climbed to 1,440,000 rials, while the price of the “Emami” gold coin rose 3.5% to 1,070,000,000 rials, reflecting heightened demand for hard assets amid economic uncertainty.

On Tuesday, Iran’s central bank governor Mohammadreza Farzin sought to reassure business leaders that the country’s foreign exchange and gold reserves remain secure.

Also on Wednesday, Oil Minister Mohsen Paknejad said that reimposition of UN sanctions will not add "new burdensome restrictions" on the country’s oil sales.

"In the last years, we have faced such severe restrictions from the unjust and unilateral US sanctions that, in practice, [UN sanctions] won't add much to this situation," Paknejad said after a cabinet meeting.

The oil and petrochemical sector contributed roughly a quarter of Iran’s GDP in 2024, making continued exports critical to Tehran’s economy as sanctions loom.

Reuters also reported on Wednesday that the revival of sanctions is unlikely to halt Tehran’s vital crude exports but could hand Chinese refiners a lucrative advantage, giving them greater access to discounted Iranian oil.