US Treasury chief Bessent says Iran cannot pay its military — Jerusalem Post

US Treasury Secretary Scott Bessent said that Iran is unable to pay its military because of the US operation Economic Outcast, aimed at limiting Tehran’s financial capabilities. He said this in an interview with CNBC on Thursday.

According to Bessent, Iranian authorities are having difficulties accessing dollars and therefore cannot replenish their resources. He also claims that US sanctions are reducing the funding Tehran directs to allied groups, including the Houthis, Hamas, and Hezbollah.

Objective of the operation

Operation Economic Outcast was announced on August 24. It is intended to limit Iran’s funding of military needs, missile production, cyberattacks, and the Islamic Revolutionary Guard Corps.

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As The Jerusalem Post reports, experts at The Washington Institute for Near East Policy believe the operation’s effectiveness could increase with closer coordination of sanctions with US allies. They also mentioned the ongoing blockade of the Strait of Hormuz.

Reports on Hezbollah funding

Meanwhile, Reuters, citing Lebanese security officials, reported that Hezbollah had spent three months preparing for a possible resumption of hostilities with Israel after receiving funds from Iran. One security source and another source close to the group said that tens of millions of dollars were intended to strengthen its military capabilities. According to Reuters, Tehran had previously also provided Hezbollah with about $200 million.