Scott Bessent Admits U.S. Strategy Triggered Iranian Economic Collapse

U.S. Treasury Secretary Scott Bessent testified before a Senate Banking Committee on February 6, 2026, acknowledging that the Trump administration intentionally created a U.S. dollar shortage to destabilize Iran. This strategy, part of a renewed maximum-pressure campaign by President Donald Trump to block Iranian oil sales and international banking access, led to the collapse of one of Iran's largest banks in December. The resulting currency freefall and exploding inflation drove mass protests that peaked on January 8 and 9, 2026.

Bessent characterized the outcome as successful economic statecraft, noting that the central bank was forced to print money as citizens took to the streets. The Iranian government responded to the unrest with violence, causing a significant loss of life. While the Iranian government officially recognizes 3,117 deaths and claims the protests were a U.S.- and Israel-backed coup attempt, the Human Rights Activists News Agency has verified 7,015 fatalities. Some civil society organizations estimate the death toll could be as high as 20,000.

The U.S. Treasury Department attributed the fatalities to the Iranian regime's decision to fund terrorist organizations over its own population. Conversely, critics argue the administration ignored the humanitarian risks and the likelihood of a violent crackdown in its pursuit of regime change.