US Ambassador to the UN Mike Waltz painted a bleak picture of Iran's economy during an appearance on Fox and Friends, arguing that the regime is running out of options and running out of money. "Iran's currency is tanking, their inflation is soaring, their foreign currency reserves are near zero, their ability to subsidize gasoline is zero, and we're seeing that they can't even pay government workers and some elements of their military," Waltz said. He tied the collapse directly to the Trump administration's Operation Economic Outcast, a sweeping sanctions campaign targeting Iranian banks, financial networks, and the regime's proxies, while pressing allies abroad to help enforce the restrictions rather than look the other way.

The numbers back up much of what Waltz described. Iran's economy contracted 10.1 percent year-on-year in the first quarter of 2026, annual inflation has climbed to nearly 70 percent, and the rial has cratered to more than 2.2 million to the dollar, a record low that has priced many imported goods out of reach for ordinary Iranians. Treasury Secretary Scott Bessent has called the sanctions push the equivalent of an economic D-Day, designed to choke off every revenue stream funding the Islamic Revolutionary Guard Corps and the regime's regional proxies, from Hezbollah to the Houthis. Analysts remain divided on whether the mounting pressure will trigger fresh unrest inside Iran, but with bazaars reportedly emptying out and crude exports through the Strait of Hormuz grinding to a near halt, the economic squeeze shows no sign of easing anytime soon.