The escalating risk of a direct military confrontation between the US and Iran is hitting the Middle Eastern country’s economy hard: its currency the rial has been tumbling against the US dollar in recent months. The intensification of attacks by Iranian-backed militias in the Middle East against US positions is fuelling these fears and putting increasing pressure on Iran’s economy. The rial has suffered a sharp devaluation on the free market, which is not officially recognised by the central bank. Iran denies involvement in drone strike as Biden says US ‘must respond’Three Americans killed, ‘…