I'm planning my New Delhi-Istanbul-trip (overland) so I have some question that I can't answer (not even with Google) As I know people must take only cash to Iran and I'll be in a really tight budget, need to do a good financial plan, I wouldn´t like to run out of money there. Regarding transportations, I want an idea of the costs of travelling by bus. Can I expect Hostels/Guesthouses in range 5-20 US$?? Recommendations?
Due to the economic embargo, you cannot use credit cards or ATMs. So cash is the only way to go. Iran is cheap but bring plenty of cash since if you run out of it, you can do nothing.
Be aware that in Iran people use two currencies. The currency in Iran, or the money used, is called Rial. The Toman is no longer an official currency. However it is still used on a daily basis in Iran and it refers to the amount of ten Rials. Dollar and Euro are both acceptable in Iran and can be exchanged to Rial in the banks, exchanges and airports.
The bus tickets are very cheap. Try to use the VIP buses with more reclining chairs.
For accommodation, you can check:Iran hotels.