According to The Washington Post:
Iran’s ailing currency took another slide Monday, losing 12 percent against foreign currencies after a U.S. decision to place its central bank under unilateral sanctions.
The currency, which economists say was held artificially high for years against the dollar and euro, has lost about 35 percent of its value since September. The Iranian currency’s exchange rate hovered around 16,800 rials to the dollar, marking a record low. The rial was trading at about 10,500 rials to the U.S. dollar in late December 2010.
Monday’s slide came as Iran tested a locally produced cruise missile during continuing naval drills near the strategic Straits of Hormuz, sending a message to the West that it would not tolerate increased sanctions against its profitable oil industry. ...
While some say that the government, which says it holds a lot of oil dollars, is gaining from the crisis, the slide of the rial is a huge blow to Iran’s leaders, who have been claiming that the sanctions aren’t hurting the country. The currency drop feeds increasing worries that the government is running out of funds.
Iran’s central bank had said Sunday that the United States had become the laughingstock of the entire world after President Obama signed the latest round of sanctions aimed at Iran’s central bank, the Islamic republic’s key axis for oil transactions. But on Monday afternoon, the bank held an emergency meeting over the sliding rial, the semiofficial Mehr news agency reported.
I'm happy to see that economic sanctions seem to be having the desired effect ... and that, despite the hyperactive (and seemingly much-cherished) paranoia in the liberal press and among OD writers and posters, military action seems to remain what it clearly has always been -- a last resort. I think, given Iran's continuing ostracization by anyone but the frothing left, and the clear dissent of it's own disillusioned citizenry, the problem of Iran will most likely be sorted out by those in the best position to do so -- Iranians themselves.