Dubai, UAE. Iran’s rial fell to near-record lows Thursday as fears mounted in Tehran that European nations will trigger a process to reimpose United Nations sanctions over its nuclear program, deepening the strain on the country’s battered economy.

The so-called “snapback” mechanism, negotiated into Iran’s 2015 nuclear deal with world powers, was designed to be veto-proof at the UN Security Council. If implemented after a 30-day window, it would freeze Iranian assets abroad, ban arms sales to Tehran, and penalize its ballistic missile development, among other measures.

In Tehran, the rial traded at more than 1 million to the dollar on Thursday. At the time of the 2015 accord, it stood at 32,000 to the dollar. The currency hit an all-time low in April at 1,043,000.

France, Germany, and the United Kingdom warned on Aug. 8 that Iran risked snapback sanctions after halting inspections by the International Atomic Energy Agency following Israeli strikes in June that killed top Iranian commanders and forced Supreme Leader Ayatollah Ali Khamenei into hiding.

Iran’s Response

Tehran initially downplayed the threat but has since launched a flurry of diplomatic outreach. Foreign Minister Abbas Araghchi last week voiced skepticism about the usefulness of talks with the West, noting the Israeli assault began just as a sixth round of negotiations with Washington was due.

“Weren’t we in talks when the war happened? So, negotiation alone cannot prevent war,” Araghchi told the state-run IRNA news agency. “Sometimes war is inevitable, and diplomacy alone is not able to prevent it.”

Nuclear Enrichment Concerns

Before the June conflict, Iran was enriching uranium to 60 percent purity, close to the 90 percent level needed for nuclear weapons, and had stockpiled enough material for several bombs if it chose to pursue them. Tehran insists its program is peaceful, though Western nations and the IAEA say Iran had an active weapons program until 2003.

It remains unclear how much Israeli and US strikes disrupted Iran’s nuclear facilities. Iran says it moved uranium and equipment to undisclosed locations before the attacks, complicating IAEA monitoring.

Under the 2015 agreement, Iran had accepted unprecedented oversight, including cameras, sensors, and on-site inspections. But since the U.S. withdrawal from the accord in 2018, inspectors have faced growing restrictions.

On Wednesday, IAEA officials oversaw a fuel replacement at Iran’s Bushehr reactor, which is operated with Russian assistance.