US to push economic pressure on Iran at G20 finance talks

US Treasury Secretary Scott Bessent is set to host G20 finance ministers and central bank governors in Asheville, North Carolina, next week, with the aim of increasing pressure on Iran's economy. The meeting, which begins on Monday, is the first in a series of key ministerial gatherings this year leading up to the G20 leaders' summit in December.

During the Asheville talks, US officials will stress to G20 members the importance of adhering to sanctions imposed on Iran. Bessent is expected to engage in direct discussions with counterparts during bilateral meetings, though details about the participants remain undisclosed. The G20, comprising 19 nations plus the European Union and the African Union, was established following the 1997-1998 Asian financial crisis to promote global economic and financial stability.

In Asheville, US officials will also address concerns such as excess industrial capacity, promoting robust economic growth, and establishing reliable supply chains for critical resources like energy. However, analysts anticipate that Washington will adopt a more traditional approach, focusing on debt, trade, financial stability, and banking regulation.

The gathering comes at a challenging time for US global leadership, as concerns about US debt levels rise, and Trump's tariffs on competitors and longtime allies have strained relationships. Additionally, economic repercussions from US-Israel strikes on Iran in February have triggered a Middle East conflict, leading to soaring energy costs.

Bessent has outlined plans to widen secondary sanctions against countries that do not join the campaign to isolate Iran economically. However, achieving this goal will likely require confronting China, Iran's primary buyer of oil, a challenging task in the lead-up to Trump's anticipated September summit with Chinese President Xi Jinping.

The US-Canada trade war and Bessent's warning of sanctions impacting other G20 members raise concerns about the group's potential fracture, according to Josh Lipsky, chair of international economics at the Atlantic Council think tank.