US Treasury Report: Sanctions Paralyzed Iran's Economy and Cut Currency by 25%

Axios reported that a US Treasury Department report it obtained showed that the US naval blockade, broad economic sanctions, and obstruction of overland export routes led to the paralysis of the Iranian economy and constrained Tehran's ability to generate revenue. This comes as Treasury Secretary Scott Bessent leads an economic pressure campaign known as "Operation Economic Outcast."

The site clarified that Bessent, one of President Donald Trump's closest aides, is urging him to give this initiative sufficient time to bear fruit rather than rushing back into military confrontation. The report does not claim that the Iranian regime is on the verge of collapse, but it presents the department's view that its efforts have succeeded in paralyzing the economy and restricting Tehran's revenue-generating capacity.

Indicators of the crisis included a decline in the Iranian rial by approximately a quarter of its value since the operation began last August, reaching a record low in October at 2.687 million rials per dollar in the unofficial market. Annual inflation rose to about 90% in September compared to around 35% at the beginning of 2025. Additionally, there was a halt in loading any oil shipments onto tankers since August 25, with the sale of remaining oil stranded at sea, bottlenecks at land borders with Turkey, Pakistan, Afghanistan, and Turkmenistan, and restrictions on aviation, banking, and targeting cryptocurrency platforms.

The site concluded that the Treasury campaign, which launched in late August, needs more time to destabilize the regime and possibly push Iranian leadership to make concessions at the negotiating table. The decision to grant it more time awaits Trump after the counting of votes in the midterm elections.