Following the assassination of Ismail Haniyeh, the head of the political bureau of the extremist group Hamas in Tehran, the Tehran Stock Exchange index plummeted sharply upon market reopening, with over 1.1 trillion tomans of real money exiting the Tehran stock market. While officials of the Islamic Republic blame Israel for the assassination of Haniyeh and promise a response, the Tehran Stock Exchange index faced a drop of 61,705 points on Saturday, August 13. Additionally, the equal-weighted index fell by 20,000 points to reach 637,000 points, with 1 trillion and 157 billion tomans of real money leaving the stock market on that day. With a nearly three percent drop in the overall index, it is now around two million points. The continued decline in the stock index comes despite Mohammad Reza Aref, the first vice president of Iran, issuing orders on Wednesday for a massive financial injection from the National Development Fund into the market, with 100 billion tomans injected on that day and 500 billion tomans on Saturday by this financial institution. Iranian media reported that some traders in the Tehran stock exchange turned off their systems on Saturday in protest against the state of the stock market and its management, and senior traders in block trading also ceased work. What will the Islamic Republic's reaction be to the assassination of Ismail Haniyeh? The killing of Haniyeh, the head of Hamas's political bureau, early Wednesday last week at his residence in a hotel overseen by the Revolutionary Guards has sparked a wave of threats from Iranian officials against Israel, and international media say Iran and its proxy groups are determined to respond militarily against Israel. Hamas is considered a terrorist group by Israel, the United States, and the European Union. Since Wednesday, the Iranian rial has continuously lost its value, with each US dollar increasing by 1,500 tomans, now trading at 61,500 tomans in the unofficial free market. Meanwhile, the prices of various coins in Iran's domestic markets have also risen today. The price of Bahar Azadi coin increased by about 0.85 percent, Imam coin by 1.6 percent, half coin by 1.3 percent, quarter coin by over 1.9 percent, and gram coin by nearly 2.5 percent. The price of Bahar Azadi coin is now over 43 million and 700 thousand tomans.
Massive Capital Exit from Iran's Stock Market and Decline of Rial Value
The assassination of Ismail Haniyeh led to a significant drop in the Tehran Stock Exchange, with over 1.1 trillion tomans leaving the market. Iranian officials blame Israel for the assassination and threaten retaliation, while the Iranian rial continues to lose value. This situation reflects growing economic instability amid escalating political tensions.
👥 Key Players
📰 What Happened
The assassination of Ismail Haniyeh in Tehran led to a sharp decline in the Tehran Stock Exchange and a drop in the value of the Iranian rial. Iranian officials blame Israel and threaten retaliation.
- Over 1.1 trillion tomans exited the Tehran stock market.
- The Iranian rial has depreciated significantly, with the US dollar now trading at 61,500 tomans.
💡 Why It Matters
📚 Background
Hamas is a Palestinian militant group with strong ties to Iran, and its leaders often reside in or visit Tehran. Iran's economy is already under strain from sanctions and internal mismanagement.
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