Iran’s economy faces over 25% contraction under US blockade, Bessent says

US Treasury Secretary Scott Bessent predicts a severe downturn for Iran’s economy, citing falling oil production and foreign currency shortages

Iran’s economy faces over 25% contraction under US blockade, according to US Treasury Secretary Scott Bessent, who spoke on 26 October. Bessent attributed the projected economic decline to the ongoing blockade of Iranian ports and the continuing conflict with the United States, stating that the country is experiencing a shortage of foreign currency and a drop in oil production.

In an interview with Iran International, Bessent said, “I would predict that from March of ’26 until March of ’27, the economy would contract more than 25 percent, which is more than the Soviet Union contracted after its collapse.” He further advised Iranians to “start stocking up on heating fuel” due to an anticipated “big heating fuel shortage.”

Bessent also commented on the government’s fiscal situation, suggesting, “My advice to the Iranian people would be: don’t pay your taxes because you’re not going to get anything back from the government.”

Iranian President Masoud Pezeshkian addressed the crisis earlier this month, describing it as the most severe since the 1979 revolution. Speaking virtually at a forum in Azerbaijan, Pezeshkian said, “Never in the 48 years since the Islamic Revolution have we been under such pressure and faced such difficulties.” He noted that attacks on infrastructure have affected energy facilities and factories, and called for increased coordination to address the challenges across the country’s provinces.

According to the US government, the blockade has prevented at least $25 billion in Iranian crude exports and resulted in the freezing of approximately $350 million in Iranian cryptocurrency assets. These measures target both Iran’s primary source of export income and a financial channel used to move money outside traditional banking systems.

Source: https://www.ibtimes.com/irans-economy-keeps-grappling-under-us-blockade-bessent-said-it-will-shrink-more-25-3809012