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Tue, 12 Nov 2019 05:13 GMT

Iran’s Militias Funds to Dry Up as Sanctions Slashes GDP by 14% in 2019: Pompeo


7Dnews London

Mon, 09 Sep 2019 02:00 GMT

Iran's gross domestic product (GDP) is expected to decline by 12% or even 14% in part over US sanctions, Secretary of State Mike Pompeo said during the American talk show "Fox News Sunday".

Iran proxy militias may face financial hurdles in the near future as the economy of Tehran is deteriorating, or at least they may have to accept fewer funds, Pompeo said.

"We can see it with Hezbollah, they have fewer resources. We can see it with the Shia militias in Iraq, they are scrambling for resources. We think the Iranian GDP will shrink by as much as 12 or 14% this year," Pompeo said.

"This will reduce their capacity to purchase the things they need, the equipment they need, the materials they need to inflict terror around the world. That's President Trump's approach. I think we've been very successful so far."

On September 4th, US President Trump said he agrees to meet his Iranian counterpart Rouhani in United Nations General Assembly in New York, which starts on September 17th.

Pompeo would not say how likely President Trump and Iranian President Hassan Rouhani are to meet in the near future, if at all.

Rouhani won't come to the negotiating table unless the US sanctions are lifted, he has said. However, his country's oil-reliant economy is in trouble. Inflation is up 37%, and the cost of food and medicine has soared 40% to 60%, according to European Union figures.

Middle East US & Canada