Adm. Brad Cooper, head of U.S. Central Command, said in a video message Friday that the effects of the blockade have rippled throughout Iran’s economy. “The financial strain on Iran’s military has become so significant that there are reports of Iran-aligned militia groups across the region withholding payments to their soldiers in order to funnel money back to the IRGC, which also is not paying its troops,” Cooper said.
Iran’s leadership has acknowledged the severity of the situation. Supreme Leader Mojtaba Khamenei has expressed concern, and state media quoted top security official Mohsen Rezaei as saying the country is facing one of its most difficult periods. Local media have reported protests by retired government employees who did not receive full pensions, and workers in public and private sectors have resigned due to insufficient pay.
The cash crunch comes as Iran faces multiple pressures: separatist militants in the southeastern provinces of Sistan and Baluchestan have stepped up attacks, killing at least eight security force members in the past three weeks, including a senior IRGC commander. Meanwhile, the regime has resumed attacks on commercial shipping in the Persian Gulf, though the flow of oil from neighboring countries remains steady under U.S. protection.
“As the Iranian regime weakens, the number of such local movements will likely multiply in number and consolidate in power,” said Shay Khatiri, a senior fellow at the Yorktown Institute, in a post for the Middle East Forum.