Treasury chief warns Iran's economy could crumble within weeks under new sanctions

At a G20 gathering of finance leaders in Asheville, North Carolina, Treasury Secretary Scott Bessent warned that Iran's economy could collapse within weeks or months as a result of a fresh wave of U.S. sanctions. The measures, announced last week, hit five key sectors—aviation, digital assets, gold, technology and shipping—and named 60 individuals and vessels. Bessent said the goal is to create conditions that will bring Iran to the negotiating table and highlighted backing from the European Union, which endorsed the pressure campaign dubbed "Operation Economic Outcast."

He indicated that new sanctions will likely be announced each week, beginning with banks that facilitate Iranian transactions, and hinted that a future step could involve cutting an institution off the dollar system entirely. The remarks came as markets reacted to heightened U.S.-Iran tensions, with oil and gold prices fluctuating and major U.S. stock indices slipping.