U.S. Treasury Secretary Scott Bessent says Iranian regime’s funding channels are tightening, IRGC reportedly unable to pay its troops
On October 29, 2026, U.S. Treasury Secretary Scott Bessent posted on X that, under Operation Economic Outcast, the Iranian regime is losing a lifeline, and its proxies are feeling the pressure. He said Tehran is struggling to move funds, and the IRGC is reportedly unable to pay its own troops.
Bessent said the United States is cutting off the regime’s ability to fund the Houthis, Hamas, and Hezbollah. He said he will not allow Tehran to continue financing its terrorist activities.
Operation Economic Outcast was launched by the U.S. Treasury Department in August 2026 and targets Iran and those enabling it, including sanctions on sectors such as digital assets, technology, gold, aviation, and shipping, as well as sanctions on more than 60 entities, individuals, and vessels. Bessent previously said the goal was to cut off the regime’s economic lifeline.
Original sources:
Title: Under Operation Economic Outcast, Iran’s regime is running out of lifelines, and its proxies are feeling the pressure. Publisher: Treasury Secretary Scott Bessent (@SecScottBessent) Publication date: 2026-10-29 URL: https://x.com/SecScottBessent（用户提供原帖内容） Source type: official post Verification status: Relevant content read for this report, verification date 2026-10-29 Supporting content: Bessent said that under Operation Economic Outcast, Iran’s funding channels are tightening and the IRGC is reportedly unable to pay its troops, cutting off funding to the Houthis, Hamas, and Hezbollah
Title: Remarks from Secretary of the Treasury Scott Bessent on Operation Economic Outcast against Iran Publisher: U.S. Department of the Treasury Publication date: 2026-08-24 URL: https://home.treasury.gov/news/press-releases/sb0614 Source type: official announcement Verification status: Relevant content read for this report, verification date 2026-10-29 Supporting content: Operation Economic Outcast was launched in August 2026, aiming to cut off Iran’s economic lifeline and targeting multiple sectors and more than 60 entities
ABAB AI Insight
Bessent’s post describes the effects of Operation Economic Outcast as difficulties for the Iranian regime in moving funds and payment problems for the IRGC. The action was launched in August 2026 and includes sectoral sanctions and the expansion of entity listings. The phrase “reportedly” refers to the IRGC payment issue and is an official statement, not independently verified financial data.
On the capital flow side, the United States is cutting off oil revenue, financial networks, and channels for funding proxies through sanctions and secondary sanction risks. Bessent previously estimated that Iran’s GDP could contract by 20% to 25%. This approach targets the regime’s sources of revenue rather than directly targeting domestic consumption in Iran. The Houthis, Hamas, and Hezbollah are identified as recipients of funds, and cutting off that ability is a U.S. policy objective.
Unlike previous rounds of sanctions on Iran, Operation Economic Outcast is described as a more comprehensive isolation campaign. Indicators to watch are whether the U.S. Treasury Department provides further details on enforcement results and how the Iranian government responds to the funding and payment issues.
ABAB News · Cognitive Law
The official wording places difficulties in moving funds and payment problems for troops side by side, which is a description of policy effects, not an independent audit result.
Cutting off proxy funding is a sanctions objective, and the actual disbursement of funds needs to be verified separately.