TEHRAN – U.S. Treasury Secretary Scott Bessent has openly acknowledged the role of American sanctions in destabilizing Iran’s economy and fueling public unrest, describing the sanctions as a form of “economic statecraft” that had contributed to recent riots in Iran.“It’s worked because in December, their economy collapsed. We saw a major bank go under. The central bank has started to print money. There is a dollar shortage. They are not able to get imports, and this is why the people took to the streets,” Bessent told Fox News during the World Economic Forum in Davos on Tuesday.He added, “This is economic statecraft. No shots fired. Things are moving in a very positive way here.”His remarks come after peaceful protests over economic hardship across Iran turned violent after public statements by U.S. and Israeli regime figures encouraged vandalism and disorder.The riots followed incendiary remarks by President Donald Trump, who threatened fresh military aggression against Iran in case of what he called the Islamic Republic’s potential confrontation with the protesters, according to Press TV.In a post on Truth Social on January 2, Trump openly threatened military attack against Iran, saying “we are locked and loaded and ready to go” if Iran counters violent protestors. In another provocative post a day later, Trump said, “Help is coming.”Intelligence officials have verified that the U.S.-Israeli-backed violent elements were seeking to hijack the protests and ignite chaos as a means of paving the way for such aggression.The United States has maintained a series of economic sanctions on Iran for decades, targeting key sectors including banking, energy, and trade. Iranian authorities have repeatedly stated that these sanctions have contributed to inflation, supply shortages, and pressure on ordinary citizens, while attempting to influence the nation’s domestic politics.Despite these pressures, Iran’s government emphasizes its commitment to maintaining social stability, protecting its citizens, and pursuing lawful international trade.Officials have also criticized U.S. efforts to portray domestic economic challenges as grounds for foreign interference.Treasury Secretary Scott Bessent speaks during a discussion about housing policy with Fox News in Davos, Switzerland, January 20, 2026. (Photo by Getty Images)
“It’s worked because in December, their economy collapsed. We saw a major bank go under. The central bank has started to print money. There is a dollar shortage. They are not able to get imports, and this is why the people took to the streets,” Bessent told Fox News during the World Economic Forum in Davos on Tuesday.
He added, “This is economic statecraft. No shots fired. Things are moving in a very positive way here.”
His remarks come after peaceful protests over economic hardship across Iran turned violent after public statements by U.S. and Israeli regime figures encouraged vandalism and disorder.
The riots followed incendiary remarks by President Donald Trump, who threatened fresh military aggression against Iran in case of what he called the Islamic Republic’s potential confrontation with the protesters, according to Press TV.
In a post on Truth Social on January 2, Trump openly threatened military attack against Iran, saying “we are locked and loaded and ready to go” if Iran counters violent protestors. In another provocative post a day later, Trump said, “Help is coming.”
Intelligence officials have verified that the U.S.-Israeli-backed violent elements were seeking to hijack the protests and ignite chaos as a means of paving the way for such aggression.
The United States has maintained a series of economic sanctions on Iran for decades, targeting key sectors including banking, energy, and trade. Iranian authorities have repeatedly stated that these sanctions have contributed to inflation, supply shortages, and pressure on ordinary citizens, while attempting to influence the nation’s domestic politics.
Despite these pressures, Iran’s government emphasizes its commitment to maintaining social stability, protecting its citizens, and pursuing lawful international trade.
Officials have also criticized U.S. efforts to portray domestic economic challenges as grounds for foreign interference.
Treasury Secretary Scott Bessent speaks during a discussion about housing policy with Fox News in Davos, Switzerland, January 20, 2026. (Photo by Getty Images)