U.S. pressure on Iran is intensifying the country's economic crisis, as a U.S.-backed blockade is straining its economy and leaving it "on the precipice of extreme calamity" while Iran deals with hyperinflation, food shortages, and growing internal unrest, White House National Economic Council Director Kevin Hassett said Sunday.
"The blockade is working. It's putting an enormous amount of pressure on Iran," Hassett said during an interview with CBS' "Face the Nation," adding that recent U.N. criticism of Tehran highlights the regime's treatment of its own citizens.
Hassett also pointed to Iran's long-term economic decline, saying the country's per capita GDP has fallen sharply since the 1979 Revolution, underscoring what he described as systemic mismanagement by its leadership.
But when asked whether the U.S. is at war with Iran, Hassett did not give a direct answer.
"I don't know what the definition of war is when we're not shooting and we're negotiating and they're under a lot of pressure," he said.
The conflict is now in its 10th week, contributing to higher energy costs.
U.S. average gas prices have risen to $4.45 per gallon, prompting concerns about the broader economic impact.
A Bank of America report estimated the increase has cost consumers $19 billion, offsetting a significant portion of expected tax relief — a view echoed by Goldman Sachs.
Hassett disputed those assessments, however, citing tax policy changes and income growth. He said tens of millions of Americans have benefited from provisions affecting taxes on tips, overtime, and Social Security income, and argued that rising wages are offsetting higher energy costs.
"Real incomes are growing," he said, contrasting current trends with declines during prior administrations.
He also outlined steps the administration has taken to ease short-term energy pressures, including waiving the Jones Act to allow more efficient domestic fuel distribution, which he said has lowered some regional costs relative to global oil prices.
The interview also addressed the shutdown of Spirit Airlines, which cited rising fuel costs among the factors behind its collapse.
Hassett said the administration explored options to prevent a shutdown but determined it lacked the legal authority to intervene as creditors moved to liquidate the company.
He attributed Spirit's failure primarily to longstanding business challenges, noting the airline had previously undergone bankruptcy proceedings, and said other carriers were better positioned due to fuel hedging strategies.
"Certainly, it'll affect profits for the airlines for a quarter or so, but they're very, very healthy right now," Hassett said.
Hassett added that major airlines, including American, United, and Southwest, have worked to assist stranded Spirit passengers by offering lower-cost flights home.
Sandy Fitzgerald ✉
Sandy Fitzgerald has more than three decades in journalism and serves as a general assignment writer for Newsmax covering news, media, and politics.
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