US blames itself for triggering Iranian economic unrest and protests

US Treasury Secretary Scott Bessent has made a statement regarding the economic situation in Iran. According to Bessent, the US engineered a dollar shortage in Iran, which led to the rial’s decline against the US dollar and subsequent protests.

In December 2025, Iran faced significant economic challenges, including soaring prices and a severe crisis. Protests began on December 28, sparked by shopkeepers in Tehran who closed their shops and demonstrated after the rial plummeted to a record low against the US dollar. The protests spread to other provinces of Iran, prompting a government crackdown.

The US Treasury Department imposed sanctions on Iranian oil exports, blocking access to foreign exchange channels. This move led to a shortage of US dollars in Iran, causing the local currency to weaken and prices of imported goods to rise. As a result, inflation worsened, and protests escalated.

Bessent stated that the US strategy involved creating a dollar shortage in Iran, which culminated in the collapse of one of the country’s largest banks. The Iranian rial subsequently plummeted, leading to widespread protests. He also mentioned that the government was wiring money out of the country rapidly, indicating a loss of confidence among the population.

In previous statements, Bessent had outlined the US plan to leverage President Donald Trump’s “maximum pressure” campaign against Iran’s economy. The Treasury Secretary stated that the sanctions campaign and government engagement had contributed to the economic collapse in Iran, leading to widespread protests.

The exact details of the dollar shortage created by the US are attributed to economist Mohammad Reza Farzanegan, who explained that the US blocked two main channels of foreign exchange inflow: oil exports and international banking access. This move trapped Iran’s existing reserves abroad and prevented new dollars from entering the domestic market.

The impact of this economic situation on the Iranian people is not further elaborated upon in Bessent’s statement.

Source: Al Jazeera