Iran unable to pay troops, fund proxies under Operation Economic Outcast, Bessent says

What Happened

US Treasury Secretary Scott Bessent said in a Thursday CNBC interview that the Iranian regime is unable to pay its troops due to Operation Economic Outcast, a sanctions operation announced August 24 that aims to cut Tehran's funding for war, missile construction, cyberattacks, and the Islamic Revolutionary Guard Corps. Bessent claimed the regime is isolated and cannot obtain dollars to replenish, and that funding for proxies such as the Houthis, Hamas, and Hezbollah is being reduced. He was quoted saying, "they're not able to pay their troops." However, the article includes a Reuters report citing two Lebanese security sources and another source close to Hezbollah that the group has spent three months preparing for a possible resumption of hostilities with Israel after receiving tens of millions of dollars from Iran. That sum is in addition to around $200 million previously reported by Reuters earlier this month. The Jerusalem Post also reported that two experts from the Washington Institute for Near East Policy assessed Operation Economic Outcast is falling short of its full potential without greater coordination with international partners.

Key Actors

Why It Matters

The competing claims expose a critical fault line in the US maximum-pressure campaign: Washington asserts sanctions are strangling Iran's ability to fund its military and proxy network, while Reuters reporting indicates Iran is still moving tens of millions of dollars to Hezbollah, which is actively rearming. If accurate, this undermines the operation's effectiveness and raises the risk of renewed Israel-Hezbollah conflict. The Washington Institute assessment further suggests that without allied coordination, Operation Economic Outcast may not fully degrade Iran's capacity to sustain the IRGC and its regional proxies.

Watch For

Monitor for new US Treasury sanctions designations under Operation Economic Outcast and whether European or Gulf partners adopt complementary measures. Watch for any resumption of Hezbollah drone or missile activity along Israel's northern border, and for further Reuters or Lebanese security reporting on Iranian cash transfers to Hezbollah. Also track whether Iran's reported inability to pay troops leads to visible unrest within the IRGC or Artesh or operational degradation in Iranian-backed networks.