Scott Bessent, hosting G20 summit, pushes Iran sanctions as war drags on economy

Treasury Secretary Scott Bessent urged finance ministers from the world's largest economies to increase economic pressure on Tehran on Monday as he opened the Group of 20 meetings in Asheville, North Carolina, amid renewed fighting between the U.S. and Iran. America is hosting the annual summit of the Group of 20 finance ministers during a turbulent time for the U.S. and many of its major allies. President Donald Trump’s unpopular war with Iran has driven up the global cost of oil and gas, as fighting in the Strait of Hormuz ahead of the summit has reignited fears of a deepening global energy crisis. Meanwhile, Trump’s aggressive trade war with Canada and his imposition of tariffs on major U.S. trading partners could pose a challenge for Bessent and Federal Reserve Chair Kevin Warsh as they seek to drum up support from America’s economic allies over the next two days. As the summit commenced Monday, Bessent made clear that the U.S. is seeking help from other countries to isolate Iran further economically. The strategy, he said in remarks to reporters, is to cause Iran’s economy to collapse within “weeks” or “months” and so force the regime to negotiate with the U.S. “The economy doesn’t have to collapse, we just have to have the regime come to their senses,” Bessent said.But completely isolating Iran from the global financial system will require the support of America’s allies. The European Union issued a statement on Monday that said, among other things, that it “remains ready to take further measures, where necessary, to safeguard its security and interests, including freedom of navigation through the Strait of Hormuz.” China, however, which purchases as much as 80% of Iran’s oil exports, according to The Guardian, has denounced the threat of further sanctions. As the war enters its seventh month, the Trump administration has publicly turned from military to economic action. Bessent announced plans on Aug. 24 to sanction Iranian digital assets, aviation, shipping and gold, in addition to individual banks, in what he framed as “economic D-Day.”