Scott Basset, the U.S. Secretary of the Treasury, reported in an interview with the media about the increasing economic pressures on the Islamic Republic of Iran and stated that the country is facing serious challenges in securing the necessary financial resources for its activities. He specifically mentioned the problems faced by the Revolutionary Guard in paying salaries to its forces and said that these restrictions are due to the operation known as "Economic Isolation."
Operation "Economic Isolation" and Its Impacts
The U.S. Secretary of the Treasury stated that the operation "Economic Isolation," which began on August 24, is specifically designed to cut off money transfer routes and prevent circumvention of sanctions. According to Basset, this operation has severely impacted the Islamic Republic's ability to finance its allied groups, including the Houthis in Yemen, Hamas, and Hezbollah in Lebanon.
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He also referred to the concerns of Revolutionary Guard officials about the possibility of economic collapse and mentioned that these concerns have been raised in both public and private circles. Internal estimates from the U.S. government suggest that Iran's economy may shrink by up to 25% between March 2026 and March 2027.
Financial Challenges and Their Consequences
Basset also pointed out the limitations on the Islamic Republic's access to dollars and foreign currency resources, stating that this could reduce Iran's ability to finance activities that the U.S. considers terrorist. He emphasized that Washington will not allow the Islamic Republic to continue financing such activities.
These developments indicate an intensification of economic pressures on the Islamic Republic and could have widespread implications at both regional and international levels. The "Economic Isolation" operation is considered one of the most severe actions to isolate a country's economy in history and appears to be having profound effects on Iran's financial and economic structure.
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