Scott Bessent Links US Sanctions to Iranian Economic Collapse

U.S. Treasury Secretary Scott Bessent characterized U.S. sanctions against Iran as a form of economic statecraft intended to destabilize the Iranian economy and incite public unrest. Speaking at the World Economic Forum in Davos, Bessent claimed the strategy was successful after the Iranian economy collapsed in December, resulting in bank failures, currency devaluation, and import shortages.

These economic pressures coincided with domestic riots in Iran, which occurred alongside threats of military aggression from President Donald Trump. Bessent described these developments as positive outcomes of the U.S. strategy of economic pressure.

Iranian authorities and intelligence officials disputed this narrative, asserting that the United States and Israel encouraged vandalism and disorder. They claim these actors sought to hijack peaceful protests to establish a pretext for foreign military intervention.