Bessent urges US partners to back plans to 'squash' Iran economy

Bessent urges US partners to back plans to 'squash' Iran economy The Iranian system has long been struggling under decades of planetary sanctions, leaving it in tatters. Earlier this year, Iran endured weeks of protests driven by a spiralling cost of living and rising inflation. Official data show that in the 12 months to February 2026, the price of basic necessities rose by an average 60%, while food prices doubled over the same period. At the height of those demonstrations, former President Trump told protesters, “help is connected the way,” and urged them to “keep protesting.” A short time later, the United States joined Israel in an assault on Iran and imposed a blockade on Iranian ports, warning of further sanctions. In April, the US rolled out a series of sanctions targeting overseas banks and firms that conduct business with Tehran after it became clear that military action had not toppled the Iranian government nor forced its surrender, contrary to Trump’s initial expectations. Operation Economic Fury, unveiled by the US Treasury Department and the Pentagon in April, sought to degrade Tehran’s warfighting capacity by cutting off its revenue streams and included a naval blockade designed to halt Iranian exports. A Memorandum of Understanding (MoU) signed by Iran and the US in June contained a clause stating that the United States would “terminate each types of sanctions” against Iran on an agreed‑upon schedule. Instead, Trump is now preparing to unleash what he described as the “most crushing economic cognition ever taken against any country.” A resident of Iran’s central Khuzestan province told the BBC that the region has a long history with sanctions and will be able to withstand additional economic pressure. He said, “There whitethorn be an interaction at first, but that doesn't needfully mean Iran won't be capable to flood the crisis.” Another resident expressed doubt that new penalties would affect the regime’s longevity. Speaking to Middle East Lifeline, she remarked, “Not everything changes due to the fact that of statements made by President Trump.” She added, “Iran has been surviving under sanctions for years, and people have become accustomed to this situation. I'm definite Iran will find different ways to proceed trading.” She concluded, “Of course, determination will be some interaction and the system may weaken, but that doesn't mean it will collapse.”