Iran is running out of money and can’t even pay its troops as U.S. blockade chokes the economy, Central Command says, while domestic unrest grows

The U.S. economic blockade against Iran is causing severe financial strain on the regime, leading to the withholding of salaries and benefits for troops and workers in various sectors, including the Islamic Revolutionary Guard Corps (IRGC). Adm. Brad Cooper, head of U.S. Central Command, stated that the naval blockade has resulted in Iran losing $25 billion in crude oil exports, and nearly $350 million in cryptocurrency assets have been frozen.

Due to these financial pressures, Iran-aligned militia groups across the region are reportedly withholding payments to their soldiers to fund the IRGC, which is also struggling to pay its troops. The IRGC has acknowledged the dire situation, with Supreme Leader Khamenei expressing concern over the regime's difficult circumstances.

Oil sales, which typically account for a third of Iran's state budget and fund the IRGC, are near prewar levels, but the flow of oil remains constrained due to the U.S. blockade. Iran's currency is in free fall, and the limited oil deliveries, primarily to China, may run out by December. Inflation now exceeds 90%, making it difficult for consumers to afford basic necessities and leading to mass resignations in both public and private sectors.

Simultaneously, separatist militants in southeastern provinces have intensified attacks against the regime, with at least eight security force members killed in the past three weeks. This financial crisis and growing domestic unrest may result in more local movements consolidating power as the Iranian regime weakens.