U.S. Treasury Secretary Bessent outlines economic pressure strategy on Iran

U.S. Treasury Secretary Scott Bessent stated during a G20 meeting in North Carolina that the objective of new economic pressures on Iran is not to collapse its economy, but to “bring the regime to its senses.” Bessent noted that Iranian leaders are reportedly shocked by their economic situation, citing long queues for gasoline as evidence of the impact. He indicated that the U.S. will continue economic pressure, which could last for weeks or months, and thanked the European Union for supporting the economic isolation of Iran.

Regarding China, Bessent claimed that Washington and Beijing share more common ground than differences concerning Iran. He noted that China agrees Iran should not possess nuclear weapons and supports free maritime trade through the Strait of Hormuz, given that China receives 50 percent of its energy from the Persian Gulf. However, the U.S. Treasury reported that China opposed several sections of the G20 final statement, including clauses regarding energy trade and the Strait of Hormuz.

Bessent also mentioned that the Treasury Department may announce new secondary sanctions weekly, initially targeting banks, to ensure there are “no leaks” in the economic isolation. He framed the choice for international actors as “either with us or with the Iranians.”