U.S. Treasury Secretary Says Iran's Economy Will Collapse Due to Sanctions

The U.S. Treasury Secretary states that the sanctions imposed by the Trump administration are designed to shut down Iran's oil industry and lead to the 'collapse' of its economy; concurrently, the U.S. State Department announced a review of sanctions exemptions related to Iran. Scott Busent, the U.S. Treasury Secretary, said on Thursday, March 6, that the Trump administration is applying sanctions severely against Iran to achieve 'immediate maximum impact.' Speaking at the 'New York Economic Club,' Busent added, 'We want to shut down the oil sector and Iran's drone production capabilities.' He emphasized that the sanctions are designed to shut down Iran's oil industry and cause the 'collapse of Iran's economy, which is already bent.' Trump stated: 'During my previous administration, Iran was bankrupt and had no money for Hamas and Hezbollah.' Donald Trump, who implemented the so-called 'maximum pressure' policy against Iran during his previous administration, signed a presidential memorandum last month to resume this policy but expressed hope that there would be no need to implement this memorandum and that a nuclear agreement could be reached with Tehran. However, the Supreme Leader of the Islamic Republic rejected negotiations with the Trump administration, stating that negotiating with the U.S. is 'not wise, rational, or honorable.' The U.S. Treasury Secretary also stated that Washington intends to cut off Iran's access to the international financial system. He said, 'If I were Iranian, I would convert all my money from rials [to another currency] right now.' Last month, two days after Trump's presidential memorandum, the U.S. Treasury Department began sanctions against Iran's international oil transfer network to China. Scott Busent also stated that for maximum impact, oil sanctions against Iran would be used 'explicitly and aggressively.' On Thursday, Reuters reported, citing six sources, that the Trump administration is considering a plan to stop and inspect ships carrying Iranian oil in international waters. In another news, the U.S. State Department spokesperson also mentioned the non-renewal of Iraq's exemption for purchasing electricity from Iran, stating that Washington is reviewing all current sanctions exemptions regarding Iran. Tommy Bruce, in response to a question about the possibility of extending the sanctions exemption that allows Iraq to pay for electricity to Iran, said, 'The current electricity exemption expires on March 8 [March 18] and we have nothing to announce.' Bruce, speaking at her first press conference as the U.S. State Department spokesperson, added, 'We are reviewing all existing sanctions exemptions that provide any degree of economic or financial relief to Iran.' She welcomed the Iraqi Prime Minister's commitment to the country's efforts to achieve energy independence, urging the Iraqi government to eliminate its dependence on Iranian energy resources as soon as possible. The exact amount of Iran's electricity exports to Iraq is unclear, partly due to the cutoff of internet users' access to statistics from Iran's Ministry of Energy. According to archival data, Iran exported about four terawatt-hours of electricity to Iraq in 2022. Iran's electricity exports to Iraq were temporarily halted this year, and in Bahman, the Iraqi Minister of Electricity, Ziad Fadhil, announced that the import of 625 megawatts of electricity from Iran had resumed. The extensive U.S. sanctions against Iran have been imposed due to Tehran's nuclear program and the Islamic Republic's support for militia groups in the region.