Currency Fluctuations and Stock Market Decline in Iran; Financial Markets' Reaction to Military Tensions in the Region

The increase in regional tensions has led to severe fluctuations in Iran's currency market. The price of the dollar in the free market, which had recently risen to 62,750 tomans, slightly decreased on Saturday to 62,400 tomans. The Tehran stock market continues its downward trend amid concerns over a potential military attack by Israel. On Saturday, October 6, the overall stock index closed negative for the sixth consecutive day, dropping by 8,123 points to reach 2 million and 106 thousand points. Following the death of Hassan Nasrallah, the Secretary-General of Hezbollah, the Stock Exchange Organization has limited the price fluctuation range from 3% to 1% to control market emotions. This action has led to a decrease in transaction values, with over 80% of symbols locked in sell queues. Hojjatollah Saidi, the head of the Stock Exchange Organization, responded to the sharp decline in indices by stating, 'Small shareholders look at the market in the short term and have the right to be concerned about their investments. We must restore calm to the market.' He promised that 'the market will return to growth and current disruptions will be resolved.' However, Saidi emphasized that the 1% limited fluctuation will continue until 'systematic risks are reduced and international conditions stabilize.' Meanwhile, many shareholders have been unable to sell their shares due to the imposed restrictions and have missed the opportunity to exit the market. The turmoil in the stock market and the prices of currency and gold in Iran follows the Islamic Republic's missile strikes towards Israel, while Masoud Pezeshkian had claimed an 'economic surgery' for the country. The rise in gold and currency prices following the Islamic Republic's missile strikes towards Israel; the Tehran stock market turned red. A '20 billion dollar' need to resolve the electricity crisis continues; the basket of essential goods for the people is getting smaller and smaller. Shin Bet: An Israeli who was hired by the Islamic Republic to assassinate Netanyahu has been arrested. Warning from the head of the Tehran Chamber of Commerce; recession in production units due to 'power outages' and lack of 'currency and liquidity.'