The Media Line: Iranian Leaders Send Fortunes Abroad as Rial Sinks, Inflation Rises, and Sanctions Squeeze the Nation  

Iranian Leaders Send Fortunes Abroad as Rial Sinks, Inflation Rises, and Sanctions Squeeze the Nation  

By The Media Line Staff  

Iran’s top officials are quietly shifting large sums abroad as the country sinks deeper into economic turmoil, according to US Treasury Secretary Scott Bessent, who said Wednesday that senior figures are moving “millions, tens of millions of dollars” out of Iran while nationwide unrest intensifies. 

“We are now seeing the rats fleeing the ship, because we can see millions, tens of millions of dollars being wired out of the country, snuck out of the country by the Iranian leadership,” he told Newsmax. “So they are abandoning ship, and we are seeing it come into banks and financial institutions all over the world.” 

The capital flight comes as Iran’s worsening currency collapse and persistent inflation drive the country into one of its hardest economic periods in years. Those pressures have fed the protests that erupted on Dec. 28, when merchants in Tehran’s commercial districts launched strikes over runaway prices and an increasingly worthless rial. The movement quickly spread across the country, involving students, workers, and residents frustrated by the cost of living and a government unable to stabilize basic economic conditions. 

Rights groups estimate 2,615 people have been killed and more than 18,000 detained, though Iranian authorities have not released official figures. Demonstrators and shopkeepers describe a daily scramble to keep up with violent swings in exchange rates, leaving many unable to restock goods or cover costs. 

At the center of the crisis is the collapse of the rial, which opened last year at roughly 817,000 to the dollar before plunging to around 1.5 million on the open market. The currency has now lost nearly 800% of its value since 2020. The steep decline has driven up the price of imports and pushed food and staples out of reach for many families. Official figures show food inflation last fall reaching 58%, with essentials such as bread, grains, and fruit rising far faster than national averages. 

Inflation overall has remained above 40% for years, eroding wages and shrinking household purchasing power despite government cash transfers and subsidies that lose value as the currency falls. Forecasts for 2025 and 2026 show inflation staying above 40%, pointing to sustained pressure on consumers and businesses. 

Sanctions remain a central factor constraining the economy. Restrictions on oil sales and access to international banking have weakened Iran’s foreign exchange reserves and limited the government’s ability to support the rial. Oil output fell in late 2025, contributing to a widening budget deficit expected to continue through 2026. Growth estimates for the coming year sit near zero as energy shortages, high prices, and sanctions weigh heavily on the industrial and services sectors. 

President Masoud Pezeshkian has acknowledged “shortcomings and problems” and said his government is trying to address economic grievances, but the combination of currency collapse, entrenched inflation, and sanctions pressure continues to drive instability—and now, according to US officials, a surge in money fleeing the country’s ruling elite.