At G20, US presses allies to isolate Iran economically; Bessent warns of collapse 'within weeks'

With finance ministers from the Group of 20 nations gathered in one place, the United States — as chair of this year's summit — moved to press the international community to join Washington in isolating Iran from the global economy. Treasury Secretary Scott Bessent said sanctions could be effective even without China's cooperation, and raised the possibility that Iran's economy could collapse "within weeks or months."

The G20 finance ministers' meeting opened Monday in Asheville, North Carolina. Bessent said in his opening remarks that the gathering would focus on global economic growth and reining in rising debt levels, but isolating Iran's economy through international coordination emerged as a central agenda item.

Treasury Department officials said Bessent was expected to press his counterparts in virtually every bilateral meeting on the sidelines, asking whether they would join the US effort to cut Iran off from the global economy.

Earlier, on Aug. 24, Bessent announced what he called "Operation Economic Ostracism," centered on secondary sanctions targeting third-country entities that do business with Iran. Since then, the US has signaled additional sanctions aimed at financial institutions dealing with Tehran, steadily ratcheting up economic pressure.

Washington has sought cooperation not only from traditional allies but also from China, one of the largest buyers of Iranian oil.

Bessent said he had "a very lively meeting" with People's Bank of China Governor Pan Gongsheng on Monday. While he did not disclose the substance of their conversation, he said the US and China had "more in common than not" on the Iran issue.

"China agrees that Iran should not have nuclear weapons, and agrees that the Strait of Hormuz should be open for free and fair passage of ships," he said.

However, Bessent drew a line against the view that the campaign to isolate Iran's economy would have limited effect without Chinese cooperation.

"We can do it without China," he said, adding that maritime blockades had left only 30 million barrels of Iranian oil at sea. "Even if Iran receives remittances from China, it will run out soon," he said.

Bessent also addressed when Iran's economy might actually collapse. Asked how soon he thought it could happen, he said, "I think it could be within weeks or months."

He went on to say that "the economy doesn't have to collapse," adding, "We just need to bring the Iranian regime to its senses."

The EU has thrown its weight behind the US economic pressure campaign against Iran. Bessent said the EU was giving "full support" to Washington's Iran sanctions effort. The EU on Monday also welcomed additional economic pressure on Iran and said it would work with partner countries to sustain it.

However, observers note that the US may face difficulties building the broad international coalition it needs to make Iran sanctions stick.

Daniel Fried, who served as assistant secretary of state for European affairs in the George W. Bush administration, said Washington could struggle to rally friendly nations and allies behind the effort. He said Bessent would need to invest considerably more effort in consulting with allies and partners than the US had shown recently if he hoped to secure broad international support.