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

US Treasury Secretary Scott Bessent expressed satisfaction with the European Union's pledge to impose sanctions on Iran, as the United States strives to obtain worldwide backing in isolating Tehran's financial resources. In a presentation at the G20 financial ministerial in Asheville, North Carolina, the European Commission affirmed its backing for the recent US actions aimed at exerting economic pressure on Iran, assuring that the bloc remains prepared to implement additional measures.

"I want to thank the EU and the ECB for their firm support of our economic efforts against the Iranian regime, and together, this coalition will bring an end to this 47-year oppressive rule," Bessent declared during the opening remarks. The Secretary is anticipated to engage with his counterparts in the coming days to align Washington's latest economic pressure campaign.

This new initiative, titled Operation Economic Outcast, expands the reach of secondary sanctions that the US can impose on nations and enterprises that interact with Iran. Bessent cautioned that those associating with Tehran risk being separated from the dollar-based financial system. The US hopes that increasing economic strain on Iran will compel it to enter negotiations, given that military operations and a naval blockade have failed to compel Tehran to concede.

Bessent noted that recent Iranian assaults suggested it was taking the threat of US sanctions seriously. "I would suspect that they are responding kinetically because they are losing economically," Bessent remarked. On Sunday, the US and Iran engaged in the first strikes since July, with US forces targeting two rocket launchers on Larak Island in the Strait of Hormuz.

Iran retaliated by attacking Jordan with missiles and the UAE with a drone on Monday. The UAE Ministry of Defence stated that an Iranian drone was intercepted within the country's territorial waters.