Bessent welcomes EU support for cutting off Iran's financial lifeline

US Treasury Secretary Scott Bessent expressed appreciation on Monday for the European Union's pledge to impose sanctions on Iran, as Washington seeks international backing in severing Tehran's financial resources. Addressing the G20 financial ministerial in Asheville, North Carolina, the European Commission affirmed its support for US economic pressure on Iran, stating readiness to implement additional measures.

Bessent credited the EU and the European Central Bank for their robust statement of support for economic actions against the Iranian regime, emphasizing their collective aim to end the 47-year oppressive rule of Tehran. The Treasury Secretary hinted at upcoming talks with EU counterparts to join Washington's latest economic pressure campaign, Operation Economic Outcast, which expands the range of secondary sanctions the US can impose on nations and businesses trading with Iran.

Bessent cautioned that engaging with Tehran could result in their isolation from the dollar-based financial system. The US hopes that escalating economic hardships on Iran will compel it to negotiate, after military actions and a naval blockade have failed to force Tehran's surrender. Recent Iranian attacks, including strikes against US forces on Larak Island and missile launches targeting Jordan and the UAE, indicate that Iran is responding seriously to the prospect of US sanctions.

"They are lashing out kinetically because they are losing economically," Bessent observed. On Sunday, the US and Iran exchanged their first strikes since July, with US forces targeting two rocket launchers on Larak Island, while Iran retaliated by attacking Jordan with missiles and the UAE with a drone, the latter of which was intercepted in territorial waters.