Archive · 2 Sep 2026
US Says Iran Lacks Hormuz Control, Faces Economic Death Spiral
The United States says Iran has not closed or taken control of the Strait of Hormuz.
Treasury Secretary Scott Bessent said the United States controls the important waterway.
He said US strikes hit radar equipment that Iran was rebuilding near the strait.
Bessent also said about 17 million barrels of oil passed through the strait in one day.
He described Iran’s economy as being in a serious downward spiral.
He pointed to fuel shortages, long lines and a falling currency as signs of economic trouble.
The United States is trying to make it harder for Iran to use money from oil sales.
Bessent said this pressure could lead Iran’s leaders to negotiate with Washington.
US Treasury Secretary Scott Bessent said Iran does not control the Strait of Hormuz and that Washington controls the waterway.
Bessent said limited US strikes targeted Iranian radar equipment being rebuilt near the strait.
He claimed about 17 million barrels of crude passed through the waterway during the previous day.
Bessent attributed Iran’s military actions to economic pressure, citing fuel shortages, long queues and a sharply weakened currency.
He said Washington was targeting banks, cash houses and supply networks to restrict Iran’s access to dollars and push it toward negotiations.
- Who
- US Treasury Secretary Scott Bessent, the United States and Iran.
- What
- Bessent said Iran lacks control of the Strait of Hormuz and is facing severe economic pressure that could force it back into negotiations.
- When
- Bessent made the comments after the G20 finance ministers’ meeting; he said about 17 million barrels passed through the strait during the previous day.
- Where
- The comments were made in Asheville and concerned the Strait of Hormuz, which connects the Persian Gulf with the Gulf of Oman and the Arabian Sea.
- Why
- The United States is applying sanctions and financial pressure over Iran’s nuclear activities, ballistic missile programme and support for armed groups in the Middle East.
- US assessment
- Scott Bessent said Iran is in an economic “death spiral” and does not control the Strait of Hormuz.
- Oil transit
- Bessent claimed approximately 17 million barrels of crude moved through the strait during the previous day.
- Military action
- He said limited US strikes targeted radar equipment Iran was attempting to reconstruct along the strait.
- Financial pressure
- Washington is targeting banks, cash houses and supply networks involved in converting or moving Iranian funds.
- Currency decline
- Bessent said Iran’s currency weakened from about 800,000 to the dollar 16 months earlier to 2.1 million.
- Possible outcomes
- Bessent identified possible divisions within the Islamic Revolutionary Guard Corps, public resistance or negotiations with Washington.
- Sanctions rationale
- The United States has sanctioned Iran’s oil industry, banking system and government institutions over its nuclear activities, ballistic missile programme and support for armed groups.