Bessent says Iran's economy nears a non-linear break as currency collapses

Treasury Secretary Bessent says panic is setting in as Iran's currency collapses, adding economic pressure to a conflict already marked by strikes and a partial blockade of the Strait of Hormuz

Treasury Secretary Scott Bessent says Iran's economy is approaching a non-linear breaking point, with panic setting in as the country's currency collapses.

The comment lands amid a conflict that has moved from threats to direct military action. Iran's navy says US forces struck its Konark naval base, a claim Washington has not confirmed. An IRGC spokesman has warned that even a limited US strike could spark a global energy crisis, and said Iran could widen its blockade beyond the Strait of Hormuz to the Bab al-Mandeb strait and the Suez Canal.

The strait itself is not fully closed, though mines, fires and a tanker sinking have kept traffic depressed. Iran's foreign minister, Abbas Araghchi, says it could reopen within six days if the United States meets Tehran's conditions, and has pointed to a new diplomatic channel through Russia on possible talks. Iran's foreign ministry has also said that 'excessive' US demands are hindering negotiations, while Tehran says it has no choice but to assert control over the waterway.

Bessent's remark adds rhetorical weight to that standoff but no new timeline or operational detail beyond what President Trump has already said about finishing the job militarily. Framing Iran's economy as nearing collapse suggests Washington sees financial pressure, not just strikes, as a lever to force concessions. For anyone exposed to crude markets, the signal is that economic pressure is being pushed harder even as the blockade itself remains unresolved and tanker traffic stays depressed.