Bessent: Iran Struggles To Pay Troops

The US Treasury Department asserts that new sanctions are starving the Iranian state of the hard currency needed to sustain its military machine. Treasury Secretary Scott Bessent told CNBC on Thursday that the regime is currently unable to pay its soldiers. He attributed this financial squeeze directly to Operation Economic Outcast, a campaign designed to isolate Tehran economically.

Bessent argued that the lack of dollar inflows prevents Iran from replenishing its reserves. "It makes them unattentive to what's happening, and then the Ayatollah is isolated," Bessent said. "But the rubber is meeting the road; they're not able to pay their troops." He noted that the shortage of cash limits the government's ability to fund domestic defense obligations.

The impact extends beyond the Iranian border to regional allies. Bessent stated that funding for proxies, including the Houthis, Hamas, and Hezbollah, is also being reduced. He described the flow of money to these groups as the "tip of the spear" of the sanctions pressure. The operation, which began in August, targets revenue streams linked to war efforts, missile development, cyber operations, and the Islamic Revolutionary Guard Corps.

An assessment from the Washington Institute for Near East Policy suggests the campaign requires more international support to reach full effectiveness. Two experts from the institute argued that closer coordination with allies on sanctions would strengthen Washington's position. They maintained that a more unified international approach is necessary to undermine the Iranian regime while a blockade of the Strait of Hormuz continues.

Despite the reported cash crunch, Hezbollah appears to be preparing for renewed conflict. Lebanese security sources told Reuters that the group has spent the past three months rearming since a lull in hostilities in June. The organization is focusing on procuring explosives and manufacturing drones capable of reaching the security zone. These preparations come amid reports that Hezbollah remains committed to attacking Israel.

Lebanese security personnel and individuals close to the group indicated that Hezbollah received tens of millions of dollars from Iran to boost its capabilities. This recent infusion supplements approximately $200 million that Tehran previously sent to the group, a sum Reuters reported earlier this month. The new funds are being directed toward military readiness and equipment.