The economic front of the conflict has delivered a devastating blow to Tehran before a single major missile has been fired. Financial markets are reporting that the Iranian Rial has suffered a catastrophic collapse, effectively trading at “zero” against the Euro due to a complete lack of liquidity. On the streets, the exchange rate has hit a psychological breaking point: it now costs one million Rials to buy a single United States dollar.

This hyperinflation spiral appears to be triggered by the convergence of military escalations—specifically the Starlink jamming and nuclear threats—which have caused capital flight to accelerate into a panic. With the currency effectively worthless, the country’s ability to import food, medicine, or raw materials is vanishing overnight.

Defense analysts warn that this economic implosion makes the situation more, not less, dangerous. A regime with a worthless currency has nothing left to lose and may view a military conflict as the only way to unify the populace and distract from the domestic financial disaster.

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