Asheville, Sept. 2: US Treasury Secretary Scott Bessent has claimed that Iran is caught in an economic “death spiral” and said growing financial and military pressure would eventually push Tehran back to negotiations with Washington.
Speaking to reporters after the G20 Finance Ministers and Central Bank Governors Meeting in Asheville, Bessent also rejected suggestions that Iran had gained control over the strategically important Strait of Hormuz.
“Iran does not have control of the Strait, and they are in a death spiral. We have control of the Strait,” Bessent said.
Bessent claimed that limited US strikes had targeted radar equipment that Iran was attempting to rebuild along the waterway. He also said around 17 million barrels of crude had moved through the Strait during the previous day, arguing that the flow demonstrated that Iran had not succeeded in shutting down the route.
“That is not Iranian control of the strait,” he said.
The Treasury Secretary linked Iran’s military actions to the economic pressure imposed on the country through US sanctions and other restrictions. He claimed that shortages of fuel and long queues inside Iran were evidence of mounting economic difficulties despite the country’s substantial energy resources.
“They are panicked. They are resorting to kinetic because they are getting squeezed economically,” Bessent said.
According to Bessent, continued pressure on Iran’s leadership could result in one of three developments: divisions within the Islamic Revolutionary Guard Corps, growing public resistance or a decision by Tehran to return to negotiations with Washington.
“At a point, either the IRGC are going to turn on each other, the people are going to turn on them, or they’re going to come to the table and want to do a deal that they can stick with,” he said.
Bessent also said US President Donald Trump believed an earlier memorandum of understanding had failed because Iran had not been prepared to reach an agreement.
“We will see when they are ready for a deal,” Bessent said.
A major part of Washington’s economic strategy, according to Bessent, is aimed at restricting Iran’s access to US dollars and disrupting channels through which Iranian funds received in Chinese renminbi are converted or transferred.
“The Chinese pay the Iranians in RMB. The RMB comes back to the Gulf region,” he said.
Bessent said the United States was targeting banks, cash houses and supply networks involved in moving or converting those funds. He referred to action against a bank in Dubai the previous Friday, although he did not identify the institution during the briefing.
He argued that preventing Iran from converting those funds into dollars would further restrict the government’s ability to finance its operations.
Bessent also pointed to the reported depreciation of Iran’s currency as an indication of reduced access to foreign exchange. He said the currency had weakened from around 800,000 to the US dollar 16 months earlier to about 2.1 million to the dollar.
The Treasury Secretary acknowledged that Iran could respond with further military action as economic pressure increases. However, he maintained that the worsening financial situation would eventually influence Tehran’s calculations and make negotiations more likely.
The comments come amid heightened tensions surrounding the Strait of Hormuz, a narrow waterway connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea.
The Strait is one of the world’s most important energy corridors, carrying substantial volumes of crude oil and liquefied natural gas from Gulf producers to international markets, particularly in Asia. Any sustained disruption to shipping through the waterway could therefore have wider implications for global energy supplies and prices.
Bessent’s remarks represent Washington’s assessment of Iran’s economic and strategic position. Iran’s ability to maintain activity around the Strait, its response to US military operations and the broader impact of sanctions remain key factors in determining how the confrontation develops.
For now, the US position is that continued economic pressure, combined with military measures, will eventually bring Tehran back to negotiations. Iran’s response and its approach to the Strait of Hormuz are likely to remain central to the evolving confrontation.
