Iran’s rial fell to a new record low of 1.8 million to the U.S. dollar, currency traders said, extending a sharp decline after a roughly 45-day war involving Iran, the United States and Israel and a U.S. naval blockade targeting Iran’s oil exports.

The new rate marks a 12.5% drop from the January level of 1.6 million to the dollar. It is likely to further fuel inflation in a country where many imported goods, from food and medicine to electronics and raw materials, are affected by the dollar rate.

The latest slide comes months after a previous currency shock helped fuel nationwide protests in January. At the time, the rial weakened from about 1.4 million to 1.6 million to the dollar in less than a week, deepening public anger over rising prices and fears about the country’s economic future.

Iran’s economy has faced years of sanctions, chronic inflation and a widening gap between official and open-market exchange rates. The war, which began in early March and lasted about 45 days, added new strain to businesses, households and state finances.

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