Treasury Secretary Scott Bessent said Iran’s economy could collapse “within weeks or months” as Washington intensifies its sanctions campaign, but stressed that the Trump administration wants to force Tehran to change course rather than trigger an economic implosion.
Sanctions Push Iran Deeper Into Crisis
“I think it could be within weeks or months — and the economy doesn’t have to collapse, we just have to have the regime come to their senses,” Bessent told reporters on Monday at the Group of 20 finance ministers’ meeting in Asheville, North Carolina.
His comments build on Operation Economic Outcast, the “economic D-Day” campaign Treasury launched Aug. 24 to sever Iran’s financial, oil, shipping and trade links. Bessent, who has warned Washington is prepared to use “financial violence if we have to”, told Reuters that Treasury expects new secondary sanctions roughly every week, beginning with banks.
Iran is already under severe pressure. Reuters had separately reported on Saturday that President Masoud Pezeshkian said foreign trade had fallen 35% because of sanctions and the U.S. naval blockade, while annual inflation reached 66%. Treasury also proposed cutting Banque Misr’s UAE branches off from U.S. correspondent banking after saying the operation processed suspected billions of dollars for Tehran over 2.5 years.
China’s Iranian Oil Trade Faces Scrutiny
The campaign also puts China in focus. According to 2025 data from analytics firm Kpler, China accounted for more than 80% of Iran’s shipped oil, making Beijing central to Tehran’s remaining export revenues. Bessent has said “all options are on the table” regarding sanctions tied to those purchases, while rejecting claims Washington is reluctant to confront China.
Oil Risks Complicate Bessent’s G20 Push
The tougher line carries global risks. Renewed U.S.-Iran strikes pushed Brent crude above $90 a barrel Monday, while traffic through the Strait of Hormuz remains severely disrupted. The waterway handled about one-fifth of global oil trade before the conflict.
Bessent is using the G20 gathering to rally partners behind the sanctions push even as U.S. tariffs and the Iran war strain relations with allies. He said the European Union had offered “fulsome support.”
Photo courtesy: Shutterstock
