U.S. Official Admits Sanctions Were Designed to Destroy Iran's Economy
A rare admission by a top U.S. official has exposed the deliberate economic destruction of Iran as a tool of state policy. Speaking at Davos in January 2026, Treasury Secretary Scott Bessent openly described how sanctions were designed to collapse Iran's currency, trigger bank failures, and spark social unrest. Economist Jeffrey Sachs now argues that these remarks confirm a long-running strategy of hybrid warfare against the country.
Meanwhile, European governments—including Germany, France, and the UK—have continued to align with U.S. actions, despite claims of neutrality. No major European power has distanced itself from Washington's approach, raising questions about a double standard in foreign policy.
Bessent's speech laid out how U.S. sanctions had 'worked' by engineering Iran's economic crisis. He detailed the collapse of the rial, the freezing of dollar reserves, and the resulting shortages that fuelled public discontent. His description of this as 'economic statecraft'—achieving goals 'with no shots fired'—was met with little media scrutiny. Most Western outlets ignored the remarks, while coverage of Iran's struggles often blamed internal corruption rather than external pressure.
Jeffrey Sachs called Bessent's comments a rare moment of honesty. He dismissed the idea that sanctions were ever meant as leverage for diplomacy, arguing that the real goal has always been regime change. Sachs pointed to repeated U.S. rejections of negotiations, even when Iran showed willingness to engage. He also warned that continued economic warfare could push Iran toward decisions it has long avoided, including accelerating its nuclear programme if its survival appears threatened.
Europe's response has reinforced the pattern. The E3 group (Germany, France, and the UK) and the EU have consistently backed U.S. sanctions, imposed their own measures, and issued statements aligning with Washington's stance. No European government has publicly challenged the strategy, despite condemning similar tactics when used against other nations. Critics argue this reveals a clear double standard: principles of sovereignty and economic fairness seem to vanish when the target is Iran.
The admission from Bessent, combined with Europe's silence, underscores the scale of economic warfare against Iran. Sanctions are not presented as an alternative to conflict but as part of a broader hybrid war—one that includes financial strangulation, cyber operations, and covert actions. Sachs' warning suggests the strategy risks escalating tensions further, with unpredictable consequences for regional stability.
The lack of debate in Western media and politics leaves the policy unchallenged. For now, the approach continues, with no sign of a shift in either Washington or Brussels.
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