US Treasury Chief: Iran Has Run Out of Dollars to Pay Its Troops
Scott Bessent claims the new sanctions package has halted Tehran's ability to fund the IRGC and its regional allies, even as Hezbollah reportedly rears with fresh Iranian cash.
By Aisha Saeed ·
US Treasury Secretary Scott Bessent stated on Thursday that the Iranian government lacks the necessary dollars to pay its military personnel. In an interview with CNBC, Bessent linked this financial shortfall directly to the effects of Operation Economic Outcast, a sanctions initiative aimed at restricting Tehran's revenue streams.
Bessent explained that the lack of access to US currency prevents Iran from replenishing its funds. He noted that this financial strain leaves the Ayatollah isolated and the troops unattentive to their duties. "It makes them unattentive to what's happening, and then the Ayatollah is isolated. But the rubber is meeting the road; they're not able to pay their troops," Bessent said.
The Secretary indicated that the sanctions also impact the money Iran sends to its proxy groups, including the Houthis, Hamas, and Hezbollah. He described this reduction in funding as the initial stage of a larger financial squeeze on the regime.
Announced on August 24, Operation Economic Outcast targets Iranian financing for war efforts, missile construction, cyberattacks, and the Islamic Revolutionary Guard Corps. Washington intends to dry up the cash flow that supports these military and strategic assets.
Two experts from the Washington Institute for Near East Policy recently assessed the operation's effectiveness. They argued that the current results would be stronger with closer coordination from international allies. The experts suggested that a more unified approach to sanctions, combined with the ongoing blockade of the Strait of Hormuz, would better undermine the Iranian regime.
Despite Bessent's remarks on Iran's liquidity, reports indicate that Hezbollah has been preparing for a potential return to war with Israel for three months. Two Lebanese security sources told Reuters that the group has used the pause in hostilities since June to procure explosives and produce drones capable of reaching the security zone.
The sources said Hezbollah received tens of millions of dollars from Iran to enhance its military capabilities. This recent infusion is in addition to approximately $200 million that the group received from Tehran earlier this month.
Source: The Jerusalem Post
