Iran’s national currency, the rial, has fallen to a record low wednesday of 1.8 million against the US dollar as a fragile ceasefire between the United States and Israel continues to hold.

The rial, which remained relatively stable in the early weeks of the conflict that began on February 28 due to limited trade and imports, started declining two days ago. Analysts warn the continued depreciation is likely to intensify inflation in Iran, where the value of the dollar heavily influences prices of imported goods, including food, medicine, electronics and raw materials.

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The currency’s slide comes as a US naval blockade during the ceasefire adds pressure on Iran’s struggling economy by restricting oil shipments, a key source of government revenue and foreign currency.

Meanwhile, Pakistani Prime Minister Shehbaz Sharif said on Wednesday that his government is continuing efforts to ease tensions between Washington and Tehran following an initial round of direct talks held on April 11.

The latest downturn follows earlier currency instability that contributed to nationwide protests in January, when the rial weakened from about 1.4 million to 1.6 million per dollar in under a week, fueling public anger over rising prices.

Iran’s economy, already affected by decades of sanctions, inflation and exchange rate disparities, has seen rising prices of basic goods such as milk, yogurt, cooking oil, bread, rice, cheese and detergents over the past two weeks.

The economic strain has also affected employment, with reports of layoffs including 500 workers at Pinak in Rasht and 700 at Borujerd Textile Factory after contract terminations since the start of the new Iranian calendar year in late March.