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Business

Iran is running out of money and can’t even pay its troops as U.S. blockade chokes the economy, Central Command says, while domestic unrest grows

Fortune ·
Iran is running out of money and can’t even pay its troops as U.S. blockade chokes the economy, Central Command says, while domestic unrest grows

U.S. economic warfare against Iran is hitting the regime’s sources of power as troops go without pay—just as they are needed to quell growing unrest in southeastern provinces.

In a video message posted on Friday, U.S.

Central Command chief Adm.

Brad Cooper said the naval blockade has prevented Iran from exporting at least $25 billion worth of crude oil.

The U.S. and its partners have also frozen nearly $350 million cryptocurrency assets, he added.

The effects have rippled throughout Iran’s economy, forcing the regime to withhold salaries, pensions, and benefits to workers in the energy, manufacturing, construction and security sectors, including the Islamic Revolutionary Guard Corps, Cooper said.

“The financial strain on Iran’s military has become so significant that there are reports of Iran-aligned militia groups across the region withholding payments to their soldiers in order to funnel money back to the IRGC, which also is not paying its troops,” he explained.

“The Islamic regime is clearly feeling the economic pain, and the IRGC is increasingly showing signs of greater desperation as a result.” Cooper pointed to the resurgence in Iranian attacks on commercial shipping in the Persian Gulf in recent weeks.

Still, the flow of oil remains near prewar levels, as Iran’s neighbors export their crude under the protection of the U.S. military.

Iran’s economic collapse is so severe that even Supreme Leader Mojtaba Khamenei has expressed concern .

Earlier this month, state media said Mohsen Rezaei, Iran’s top security official, admitted that the situation is one of the most difficult periods the country has ever faced.

Meanwhile, Iran currency is in free fall as oil revenue dries up, with the trickle of sales from crude that was already at sea prior to the U.S. reimposing its blockade now running out.

Payments for those final oil deliveries, which primarily end up in China, could stretch out to December.

Once that spigot runs dry, however, the Iranian regime will be deprived of what was previously its top source of hard currency.

Read the full article on Fortune ›

5News aggregated this summary from the outlet’s public feed. The full article, with all the context, is on fortune.com — the content belongs to Fortune.

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