US artificially set up dollar shortage in Iran, Treasury chief says

The United States deliberately created a dollar shortage in Iran as part of its efforts to pressure the regime, triggering a sharp drop in the Iranian currency and widespread protests, Treasury Secretary Scott Bessent told the Senate.

 “Well, what we can do at Treasury and what we have do is have done is created a dollar shortage in the country … It came to a swift, and I would say grand, culmination in December when one of the largest banks in Iran went under … The Iranian currency went into freefall. Inflation exploded, and hence we have seen the Iranian people out on the street,” Bessent said in response to a question from Senator Katie Britt, per Caliber.Az.

He added that the US is observing the Iranian leadership “thoughtlessly moving money out of the country,” noting that “rats are leaving the ship” as officials recognize that “the end could be near.”

Iran has been experiencing one of the most severe economic crises in recent history, marked by the sharp depreciation of the rial, soaring inflation and rising prices for food and essentials. The currency has fallen to record lows against the U.S. dollar, weakening purchasing power and deepening public frustration.

The downturn has triggered widespread protests starting late December 2025, originally sparked by economic hardship—including inflation and currency collapse—but quickly evolving into broader demonstrations against the government and calls for political change.

Protests have taken place in many cities across all provinces, involving strikes, street marches and anti‑regime slogans, with shop closures and demonstrations often led by merchants and ordinary citizens affected by the economic pressures.

By Khagan Isayev