Iran is currently experiencing significant financial strain following nine months of conflict, with a US naval blockade leading to $25 billion in lost oil revenue and $350 million in cryptocurrency assets being frozen, as stated by Adm. Brad Cooper, the head of US Central Command (CENTCOM).
In a video message released on Friday, Cooper noted that groups backed by Iran, such as Hezbollah, Hamas, and Shia militias in Iraq, have been sending funds back to the Islamic Revolutionary Guard Corps (IRGC), which has supported these organizations for many years.
“The financial pressures on Iran’s military have intensified to the point where reports indicate that militia groups affiliated with Iran across the region are withholding payments for their fighters, redirecting funds back to the IRGC, which is also delaying salaries for its personnel,” Cooper remarked.
He further mentioned that the Iranian government is deferring salaries, benefits, and pensions for a variety of public sector employees, including internal security staff and members of the IRGC.
This economic squeeze has arisen as the Trump administration upholds a naval blockade and sanctions against Iran, aiming to compel Tehran to agree to terms that include concessions regarding its nuclear activities. Nevertheless, Iran has yet to provide a response to a US counterproposal intended to resolve the ongoing conflict.
Recently, Cooper indicated that CENTCOM and the United States Treasury Department had also frozen $350 million worth of Iranian cryptocurrency. In addition, the naval blockade has resulted in an estimated $25 billion loss in oil revenues for the Iranian government.
Strait of Hormuz tensions
Cooper linked the rise in Iranian attacks on vessels in the Strait of Hormuz to a feeling of desperation within the IRGC. However, despite these strikes, he confirmed that the critical waterway remains operational, reporting the transit of 400 ships carrying 100 million barrels of oil through the area in the past week.
The US military has largely refrained from targeting Iranian anti-ship missiles and drone launchers in the region in the recent weeks, with a US official stating that this pause was directed by the White House to prevent further escalation before the midterm elections in November.
US officials are apprehensive that ongoing attacks may deter shipping companies from using the Strait, potentially diminishing oil supplies and driving global prices higher. They also suspect that Iran’s actions might aim to inflate oil prices and intensify pressure on US President Donald Trump as the elections approach.
Meanwhile, the White House, along with mediators from Qatar, is awaiting a response from Tehran regarding Washington’s counterproposal for peace. A US official shared that the proposal remains under review in Tehran, and regional mediators are urging Iranian Foreign Minister Abbas Araghchi to avoid delaying the response until after the midterm elections, highlighting that there could be no assurance that Trump would engage in a more cooperative manner subsequently.