WASHINGTON / TEHRAN: U.S. Treasury Secretary Scott Kenneth has publicly acknowledged that the severe shortage of U.S. dollars in Iran was a direct result of American policy actions. The admission comes amid ongoing international scrutiny of the economic measures imposed on Tehran during the Trump administration.
According to foreign media reports, Senator Katie Elizabeth questioned Secretary Kenneth about the specific steps taken by the Trump administration to increase pressure on Iran. In response, Secretary Kenneth stated that the United States deliberately created a significant dollar crisis in Iran. He noted that in December, an Iranian bank went bankrupt, exacerbating the financial turmoil.
“This was a deliberate strategy to intensify economic pressure on Iran,” Secretary Kenneth said. He explained that as a result of U.S. sanctions and financial restrictions, Iran’s central bank was forced to print more currency notes, leading to a sharp devaluation of its national currency. This, in turn, triggered runaway inflation, severely impacting the purchasing power of ordinary Iranians.
The Treasury Secretary further elaborated that American measures effectively cut off Iran’s access to global dollars. “Our policy created a severe dollar shortage in the Iranian market,” Kenneth said, noting that the resultant economic strain forced Tehran to inject more rials into circulation. The excessive printing of notes, he admitted, caused the local currency to weaken further, leading to uncontrollable inflation and widespread public discontent.
According to U.S. media reports, as part of the pressure campaign, Washington also reduced Iranian oil exports to zero, significantly increasing economic stress. These measures, combined with restrictions on financial transactions, fueled growing public frustration, culminating in violent protests in December.
Reports indicate that the initial protests, which began peacefully on December 28, were largely driven by anger over the plummeting value of the Iranian currency and soaring prices. However, intelligence sources cited in foreign media claim that organized groups allegedly linked to Israel’s Mossad infiltrated the demonstrations. These groups reportedly incited violence, targeting protesters, security forces, government buildings, and even religious sites.
During the period of unrest, foreign media reports estimate that over 3,500 people lost their lives, making the December protests some of the deadliest in recent Iranian history. Secretary Kenneth’s admission sheds light on the broader context of these events, highlighting the role of U.S. economic pressure in exacerbating domestic instability.
Iranian officials have long criticized the United States for employing “maximum pressure” policies designed to destabilize the country economically and politically. The Treasury Secretary’s remarks appear to confirm suspicions that U.S. sanctions and financial measures were intended not only to restrict Iran’s oil exports but also to create internal economic crises.
The devaluation of Iran’s currency, coupled with skyrocketing inflation, led to widespread hardship across the country. Basic commodities became unaffordable for many, prompting large-scale public demonstrations. Observers note that the combination of economic distress and alleged foreign interference turned initially peaceful protests into violent confrontations, resulting in significant loss of life and property.
Secretary Kenneth’s statement has sparked debate among economists and foreign policy analysts. Some argue that while sanctions are a common tool of statecraft, acknowledging the intentional creation of a domestic currency crisis raises ethical questions about the humanitarian impact of such measures. Others contend that economic pressure is a standard element of international diplomacy and that Iran’s leadership bears responsibility for domestic economic mismanagement.
Meanwhile, international reports continue to document the human and economic toll of the crisis. Despite the protests and economic upheaval, the Iranian government has remained in power, implementing security measures and continuing governance amid challenging circumstances.
Analysts also point to the role of external intelligence agencies in influencing the protests. Reports suggest that coordinated efforts by groups linked to Mossad escalated violence during demonstrations, turning citizens’ economic frustration into organized attacks on infrastructure and security personnel.
The acknowledgment by the U.S. Treasury Secretary underscores the interconnectedness of economic sanctions, currency devaluation, and political unrest. It also highlights the complex consequences of financial warfare, where measures intended to pressure a government can have profound humanitarian repercussions for the general population.
Observers warn that such policies, while achieving strategic objectives, risk long-term damage to international relations and may contribute to cycles of violence and instability. In Iran, the combined effects of currency collapse, inflation, and alleged foreign interference have left deep social scars and widespread economic hardship.
