US Treasury Secretary Scott Bessent Praises EU Backing for Iran Sanctions

US Treasury Secretary Scott Bessent on Monday expressed his gratitude for the European Union's dedication to implementing sanctions against Iran, as Washington works to build international coalitions to isolate Tehran financially.

During a statement at the G20 financial ministerial held in Asheville, North Carolina, the European Commission stated that the EU supported recent American efforts to increase economic pressure on Iran, noting that the bloc is prepared to implement further measures.

“I want to thank the EU and the ECB [European Central Bank] for their strong statement of support for our economic operations against the Iranian regime, and together, this group will end this 47-year horrendous reign that they have had,” Mr Bessent said in opening remarks before a plenary session.

Mr Bessent is scheduled to meet with his counterparts throughout the week to discuss participation in Washington's newest economic pressure initiative. This initiative, designated as Operation Economic Outcast, expands the reach of secondary sanctions that the US can impose on nations and corporations doing business with Iran.

The Treasury Secretary cautioned that entities conducting business with Tehran face the risk of losing access to the dollar-based financial system. Washington anticipates that increased economic pressure will compel Iran to enter negotiations, particularly after previous military campaigns and a naval blockade were unsuccessful in securing Tehran's surrender.

Mr Bessent noted that recent attacks by Iran indicate the country is taking the danger of US sanctions seriously. “I would think that they are lashing out kinetically because they are losing economically,” Mr Bessent said.

Over the weekend, the US and Iran traded strikes for the initial instance since July, with American forces targeting two rocket launchers located on Larak Island within the Strait of Hormuz. In retaliation, Iran directed missiles at Jordan and launched a drone targeting the UAE on Monday. The UAE Ministry of Defence confirmed that an Iranian drone was successfully intercepted above its territorial waters.