Bessent seeks to rally G20 on severing Iran financial ties

G20 finance ministers convened in Asheville, North Carolina, on Monday, with US Treasury Secretary Scott Bessent striving to unite their efforts in severing Iran's financial ties. Bessent unveiled the latest US economic pressure campaign against Iran last week, aiming to tighten the screws on Iran's economy post-military operations and a naval blockade.

The new initiative, dubbed "Operation Economic Outcast," broadens the scope of secondary sanctions, potentially cutting off countries and businesses from the dollar-based financial system. The European Commission expressed support for US moves, pledging further action. Bessent commended the EU and the ECB for their strong statement of support against the Iranian regime.

The UAE halted trade and financial relations with Iran following missile attacks, while China has declined to sanction financial institutions, which could lead to tensions before President Xi Jinping's September visit to Washington. Bessent met robustly with China's central bank governor, Pan Gongsheng, although specifics were not disclosed.

The US and China recently reached a trade truce, easing tariffs and restoring rare-earth exports. Bessent urges G20 members to reconsider their trade relationships with China, criticizing the country's $1.2 trillion trade surplus. Recent Iranian attacks suggest that the threat of US sanctions is taking them seriously, potentially bringing them to the negotiating table.