U.S. Treasury Secretary Scott Bessent has urged international partners to support a plan aimed at severely damaging Iran's economy. Bessent stated that allies must decide whether they "are with us or against us" in implementing these measures.
The Iranian economy has faced significant challenges due to decades of international sanctions, contributing to inflation and a high cost of living. In the 12 months leading up to February 2026, the cost of basic necessities reportedly rose by an average of 60%, with food prices doubling in the same period. These economic pressures have previously fueled widespread protests, with citizens blaming the Iranian regime.
In April, the U.S. initiated a wave of sanctions targeting foreign banks and firms engaged in business with Tehran, following military operations that did not result in the regime's overthrow or surrender. "Operation Economic Fury," announced by the U.S. Treasury Department and the Pentagon, was designed to degrade Iran's military capabilities by cutting off revenue streams and included a naval blockade to halt Iranian exports.
However, a Memorandum of Understanding (MoU) signed in June between Iran and the U.S. included a clause for the termination of all sanctions against Iran on a set schedule. Despite this, the current administration is preparing to launch what Bessent described as the "most crushing economic operation ever taken against any country."
Residents in Iran have expressed varying perspectives on the potential impact of further sanctions. Some noted the country's long experience with economic restrictions, suggesting it may be able to overcome new pressures. Others expressed doubt that additional penalties would significantly affect the longevity of the current regime, stating that "Iran has been living under sanctions for years, and people have become accustomed to this situation."
While acknowledging that fresh sanctions may weaken the economy, some Iranians believe it will not lead to its collapse, with suggestions that Iran will find alternative trading methods.