Iran could face economic collapse in months, US Treasury’s Bessent warns

What the report says

US Treasury Secretary Scott Bessent said Iran could face an economic collapse within weeks or months as the Trump administration expands a sanctions campaign aimed at increasing pressure on Tehran. His remarks came on the sidelines of a G20 finance ministers and central bank governors meeting in Asheville, North Carolina, where he said the objective was to create conditions for Iran to return to negotiations. The comments were reported by Al Jazeera, which said Bessent linked the economic pressure to what he described as Iran’s retaliatory actions.

According to Al Jazeera, the US imposed a new wave of sanctions last week targeting five sectors of Iran’s economy: aviation, digital assets, gold, technology and shipping. The measures also covered 60 individuals and vessels. Bessent said allies were backing the campaign, and the European Commission separately said the EU supported efforts to push Iran toward peace talks and additional economic pressure. He also indicated that Washington could announce more sanctions on a weekly basis and may ultimately cut some institutions off from the dollar-based system.

The article placed Bessent’s remarks against a broader backdrop of rising US-Iran tensions and market unease. It also noted that Federal Reserve Chairman Kevin Warsh attended the G20 meeting and that investor sentiment was affected, with gold and major US stock indexes moving lower. As reported by Al Jazeera, the sanctions drive is part of a wider US effort to weaken Iran economically and bring it back to the table.