US Treasury Secretary Warns Iran's Economy to Contract by Over 25% Amid Intensified Sanctions and Naval Blockade

US Treasury Secretary Scott Bessent stated that Iran's economy is expected to shrink by more than a quarter in the year ending March 2027, attributing this to mounting pressure from two rounds of war with the United States and Israel, a US naval blockade curtailing oil exports, and an expanding sanctions campaign. Diplomatic efforts have intensified, with Qatari mediators and senior officials from Saudi Arabia, Pakistan, and Turkey engaging in talks to de-escalate tensions and revive negotiations. Bessent also appealed to individuals involved in moving Iranian government money overseas, noting that some financial intermediaries are already refusing to return funds to Tehran.