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

US Treasury Secretary Scott Bessent will be advocating for G20 nations to team up and isolate Iran's economy during the upcoming finance summit. The campaign, dubbed "Operation Economic Outcast," aims to compel Iran to resume Strait of Hormuz operations following six months of conflict. Bessent asserts that engaging in business with Iran risks detachment from the US dollar system.

He is anticipated to present this argument personally to each G20 member during their ministerial meeting in Asheville, North Carolina. The White House hopes this economic pressure will force Iran to the negotiating table, as the Iran deal expired. However, the initiative's success hinges on garnering backing from nations with significant economic ties to Iran, such as China, India, Russia, and Turkey.

While China is a crucial trading partner for Iran, importing nearly 90% of its crude oil exports, the US has refrained from targeting major Chinese banks to avert escalating tensions. Instead, the US Treasury recently sanctioned Hong Kong and Chinese entities involved in illicit oil transfers and missile development support. The Gulf states are also bolstering their economies by constructing new pipelines to circumvent the Strait of Hormuz, which has become a strategic chokepoint amid the ongoing conflict.