Bessent Says Iran's Economy Is 'Collapsing' Under Operation Economic Outcast and Puts a 20% to 25% Hit on Its GDP
The Treasury secretary tells Fox the eight-week campaign targets foreign banking channels and Iranian air travel. He says some Iranian troops are going unpaid. These are his claims, and no independent figures were given.
Treasury Secretary Scott Bessent says the administration is tightening its financial squeeze on Iran, Fox Business reports.
What he said. On "The Brian Kilmeade Show," Bessent said, "I think that the Iranians are panicked. I think the economy is collapsing." He estimated Iran's gross domestic product could fall 20% to 25%.
The campaign. Bessent described an eight-week Treasury effort called Operation Economic Outcast, which he said builds on a blockade and aims to cut the financial and commercial links that have let Iran keep operating despite sanctions. He said new authorities include "shutting down their airline travel," which he thinks has had "a real effect, especially on the elites and the regime."
The banks. He pointed to action against banking operations tied to Egypt, Turkey and Russia. He said the Dubai branches of one Egyptian bank processed more than $1.8 billion in transactions potentially linked to Iranian financial networks. "We have taken out, and we've made an example of enough people and if we need to, we will continue doing that," he said, adding that the U.S. is "getting good cooperation and the regime is desperate."
The strain. Bessent said the pressure is reaching ordinary Iranians and the security apparatus, with some military personnel going unpaid and some police officers not reporting for duty. He closed by saying President Trump still has options as the administration weighs its next steps.
Note for readers: the GDP estimate, the unpaid-troops claim and the bank figure are Bessent's statements in an interview. Fox Business gives no outside data to confirm them. We covered Larry Kudlow's earlier prediction on the same theme.