Bessent takes his pitch on isolating Iran's economy to G20

US Treasury Secretary Scott Bessent is set to present G20 nations with a proposal aimed at isolating Iran's economy during the group's finance gathering this week. The Iran war has been ongoing for six months, and President Donald Trump's administration is ramping up its pressure campaign to compel Iran to reopen the Strait of Hormuz.

The strategy involves pressuring countries caught in the middle to choose between Iran and the US. Under the plan, known as "Operation Economic Outcast," countries engaging in business with Iran may face exclusion from the US dollar-based system. When Bessent arrives in Asheville, North Carolina for the G20 ministerial meeting, he is expected to relay this message directly to the group's members.

The administration hopes to gather support from major trading partners like China, India, Russia, and Turkey, despite their strong economic ties to Iran. While the US has imposed sanctions on Chinese refineries, it has refrained from targeting major Chinese banks, fearing potential escalation and damaging a trade truce with China.

The campaign is designed to intensify economic strain on the Iranian economy, where oil exports have dwindled, the rial has plummeted against the dollar, and inflation remains above 80%. The success of Bessent's efforts in garnering G20 support remains uncertain.