Treasury holds leverage in Iran war negotiations
Axios, citing multiple anonymous White House officials, reports that Iranian negotiators fear the U.S. Treasury more than the Department of Defense because of Iran's strained economy. Officials said Iran wants money before it stops being bombed, and that bank runs and gasoline shortages are already occurring in the oil-rich country. Those conditions give Treasury Secretary Scott Bessent leverage in negotiations, since the administration can combine military pressure with sanctions that could cripple Iran. The immediate consequence is that economic measures, not only military options, may determine how and when the war talks reach agreement.
Iran fears U.S. Treasury sanctions more than U.S. military.
Context
The United States and Iran are negotiating to end the war. White House officials say Iran faces economic stress like bank runs and gasoline shortages. Treasury decisions could change the talks next.
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