Secretary of State Mike Pompeo said Iran's GDP could shrink by 12% or even 14% in part because of U.S. sanctions.
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Iran-backed groups are already having to deal with less funding as the country's economy shrinks, Pompeo said during an appearance on "Fox News Sunday."
“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."
Pompeo would not say how likely President Trump and Iranian President Hassan Rouhani are to meet in the near future, if at all. Trump said Wednesday he was open to meeting with Rouhani at the United Nations General Assembly in New York, which starts later this month.
Rouhani won't come to the negotiating table unless the U.S. sanctions are lifted, he has said. But his country's oil-reliant economy is in trouble. Inflation is up 37 percent, and the cost of food and medicine has soared 40% to 60%, according to European Union figures.