Bessent: Economic Squeeze Could Bring Down Iran Regime

The Trump administration has begun a worldwide campaign to sever Iran's remaining economic ties, and banks and other companies helping Tehran evade sanctions will be cut off from the U.S. financial system as Washington intensifies pressure on the Iranian government, Treasury Secretary Scott Bessent tells Newsmax.

"We are telling the friends and foes that this is the end of the regime," Bessent said in an interview with Newsmax's "Rob Schmitt Tonight" from the G20 economic summit in Asheville, North Carolina.

"We are going to sever all of their economic ties with the outside world," he added.

Bessent said Treasury, the State Department, and other administration teams have spread out across the world to press allies and adversaries to stop financial and commercial dealings that sustain Tehran.

The campaign will target financial institutions as well as Iran's aviation, maritime, digital asset, and trading networks, he said, noting that additional action against another bank is expected and warning institutions that continue to facilitate Iranian transactions that their access to the dollar system is at risk.

 

"When these banks are sanctioned, they're out of business," Bessent said. "They are cut off from the dollar system. And we know who is helping the Iranians. They know who they are. And it is going to stop."

The comments follow Treasury Department action against Banque Misr's operations in the United Arab Emirates over alleged transactions involving Iranian shadow-banking networks.

The Treasury Department said last week that its Financial Crimes Enforcement Network proposed revoking Banque Misr UAE's correspondent banking access to U.S. financial institutions.

The department said the bank processed about $1.8 billion in transactions between January 2024 and June 2026 for 103 companies that may be part of networks used by Iran to circumvent sanctions.

Treasury also sanctioned the manager of Iran's Bank Melli branch in Dubai and a Hong Kong-based company accused of helping Iran gain access to the international financial system.

The administration's economic campaign comes after months of U.S. military action against Iran and a blockade aimed at restricting traffic through Iranian ports.

Bessent said the military campaign has severely damaged Iran's conventional forces and weapons production capability, while economic pressure is intended to further weaken Tehran's ability to function.

 

"We have never seen an economic isolation like this in history," he said.

Bessent pointed to gasoline shortages, high inflation, and difficulties paying Iran's military as signs the government is under increasing strain.

Despite possessing some of the world's largest energy reserves, Iran imports gasoline, Bessent said, adding that the blockade has contributed to fuel lines inside the country.

Bessent also predicted the current Iranian government could fall sooner than many expect.

Asked whether he believes the regime would survive through the end of President Donald Trump's term, Bessent replied, "I believe it will be much sooner."

But Bessent stopped short of saying regime collapse is the explicit objective of the economic campaign.

"The goal here isn't necessarily to collapse the regime," he said, adding that the government could fall if Iranians rose up amid inflation, shortages, and economic disruption.

Instead, Bessent said the administration wants to create enough economic pressure to force Tehran back into negotiations on terms acceptable to Trump.

He said Trump believes previous diplomatic efforts failed because Iranian leaders were not prepared to make an agreement.

"We are going to make sure they want to make a deal," Bessent said.

Bessent nevertheless said Trump is determined that Iran will not emerge from the conflict with its government and capabilities unchanged.

"This is the final move for this regime after 47 years," he said.