U.S. Treasury Secretary Bessent says Iran's economy may contract 25% amid isolation campaign

U.S. Treasury Secretary Scott Bessent stated that Iran's economy could contract by as much as 25% between March 2025 and March 2027, comparing it to the Soviet Union's 22% contraction over three years during the Iron Curtain's fall. Bessent said the Iranian currency has collapsed, with the dollar potentially exceeding three million rials, and that Iran no longer publishes real exchange rates. He reported that Revolutionary Guards members are expressing concerns about economic collapse in both public and private, and that Iran can no longer pay salaries or obtain dollars to replenish resources. Bessent also claimed funding sources for Iranian proxy organizations including the Houthis, Hamas, and Hezbollah are drying up as part of what he called an "Economic Isolation" operation.