Bessent says EU, UK, UAE back US Iran sanctions push at G20

Treasury Secretary Scott Bessent told finance ministers at the G20 summit in Asheville, North Carolina, on Tuesday that he had secured broad backing from allies to intensify Washington's campaign to strangle Iran's economy, warning that new sanctions targeting banks would follow on a near-weekly basis.

Bessent said the European Union, the United Kingdom, and the United Arab Emirates had signaled their readiness to join the United States in what the administration has dubbed "Operation Economic Outcast," a sweeping sanctions campaign launched on Aug. 24. "We intend to economically suffocate this regime," Bessent said in an interview, according to the New York Times.nytimes+1

Weekly Sanctions and the Banking Offensive

In an interview with Reuters ahead of the ministerial sessions, Bessent said the Treasury Department expects to unveil new secondary sanctions roughly once a week, with banks as the first target. "We're starting with the banks, and we're telling the banks it's not okay to have Iranian money and to aid the regime," he said. Institutions that do not comply could be cut off entirely from the dollar-based financial system.enterpriseam+2

The campaign's initial round on Aug. 24 saw the Treasury Department's Office of Foreign Assets Control designate nearly 60 entities, individuals, and vessels while extending sanctions to five new sectors of the Iranian economy: digital assets, aviation, gold, shipping, and technology. Days later, the Financial Crimes Enforcement Network moved to strip correspondent banking access from Banque Misr's UAE branches, alleging the outpost processed roughly $1.8 billion for entities FinCEN says may be tied to Iranian shadow-banking networks.diplomacyandlaw+2

Allies and Adversaries

Bessent also disclosed that the Treasury Department is actively pursuing the seizure of assets held overseas by Iranian leaders, specifically funds in bank accounts in the British Virgin Islands. He struck a confident tone on the broader conflict's economic fallout, predicting that oil shipping routes would adapt quickly to the disruption around the Strait of Hormuz. "In two years the Strait of Hormuz will be a worthless piece of water," he said.nytimes

Not all G20 participants were aligned with Washington's posture. China has publicly opposed the expanded secondary sanctions, with Foreign Ministry spokesperson Lin Jian calling unilateral measures lacking U.N. Security Council authorization unlawful. Germany's Vice Chancellor Lars Klingbeil used the gathering to criticize U.S. trade policy, telling reporters that "tariff disputes initiated by the U.S., such as the current one with Canada, undermine trust" and "ultimately harm all parties involved".diplomacyandlaw+1

The Broader Stakes

The G20 Finance Ministers and Central Bank Governors meeting, running from Aug. 31 through Sept. 1, marks the first of three major summits during the U.S. presidency of the G20 this year. Russia's Finance Minister Anton Siluanov attended the Asheville gathering for the first time since Moscow's 2022 invasion of Ukraine, drawing opposition from European officials. Bessent framed the choice for nations in stark terms: "You're either with us, or you're with the Iranians".axios+2