US Treasury Secretary Says Sanctions Forced Iran to Cut Proxy Group Funding

Scott Bessent, the U.S. Secretary of the Treasury, described Washington’s economic pressure campaign against the Islamic Republic as “highly successful,” asserting that restricting Iran’s access to U.S. dollars has forced the government to reduce or completely sever financial aid to its regional proxy groups.

In an interview with CNBC, Bessent stated that internal U.S. estimates indicate Iran’s economy could contract by up to 25 percent within a single year.

He added that Islamic Republic officials have voiced grave concerns regarding the economic situation since the summer, and now IRGC commanders are discussing the potential for collapse in both public and private forums.

The U.S. Treasury Secretary claimed that the Islamic Republic is cutting off funding to groups including Hezbollah in Lebanon, the Houthis in Yemen, and Hamas.

These remarks follow the launch of the so-called “Operation Economic Ostracization,” an initiative initiated by the U.S. Treasury Department on August 25, 2026, aimed at severely restricting the Islamic Republic’s access to international financial resources, oil revenues, and sanctions-evasion routes.

Previously, Brad Cooper, Commander of United States Central Command (CENTCOM), similarly claimed that U.S. economic pressure had plunged the IRGC into a financial crisis.

Cooper stated that certain Iranian-backed militia groups had suspended salary payments to their fighters to return funds to the IRGC.

Furthermore, Cooper asserted that U.S. actions had deprived the Islamic Republic of $25 billion in oil revenues and led to the freezing of $350 million in cryptocurrency assets.

However, the newspaper Asharq Al-Awsat, citing Iraqi sources, refuted portions of the CENTCOM commander’s assertions.

While acknowledging financial difficulties among armed groups aligned with Iran, these sources stated that fighters within these factions - who largely operate under the umbrella of the Popular Mobilization Forces (PMF)—continue to receive their monthly salaries.

Conversely, a September report by Reuters indicated that the transfer of Iranian funds to its regional allies has not ceased entirely.

Citing informed sources, Reuters reported that Hezbollah in Lebanon received $200 million from Iran to assist displaced persons despite intensified sanctions. According to these sources, financial intermediaries taking part in the transfers charged a 20 percent commission due to the high risk of sanctions exposure.