Bessent seeks to rally G20 on severing Iran financial ties

Treasury Secretary Scott Bessent convened the G20 finance ministers in Asheville, North Carolina, with the goal of rallying support for tightening financial sanctions on Iran. The US administration is tightening the screws on Iran's economy following unsuccessful military operations and a naval blockade. The new campaign, dubbed "Operation Economic Outcast," expands the scope of secondary sanctions targeting countries and businesses engaged with Iran.

The Treasury Secretary warned that those who deal with Tehran risk being cut off from the dollar-based financial system. The European Commission expressed support for recent US moves, vowing to take additional action together. The UAE had already cut trade and financial ties with Iran after Iranian missiles were directed at the emirate.

China, under President Xi Jinping, has vowed to protect its economic interests by not sanctioning financial institutions. The US and China have reached a trade truce, easing tariffs and restoring rare-earth exports. Bessent urged G20 members to reconsider their trade relationships with China, citing a $1.2 trillion trade surplus.

Recent Iranian attacks suggest that the regime is reacting to the threat of US sanctions and may be losing economically. The US and Iran clashed for the first time in months, with the US striking Iranian targets in the Strait of Hormuz and Iran retaliating with missile strikes on Jordan and the UAE.