Bessent huddles with G20 to try to rally allies

(AP) ASHEVILLE, North Carolina — Treasury Secretary Scott Bessent is meeting with finance ministers from the world’s largest economies this week, pressing an agenda centered on economic growth, energy security and stronger financial pressure on Iran.

The Group of 20 meetings come as the Trump administration takes a more aggressive approach to international trade and foreign policy, including expanded tariffs on major trading partners and a campaign of economic sanctions aimed at forcing Iran’s leaders to change course.

Opening the meetings in Asheville on Monday, Bessent said the discussions would focus on expanding the global economy and addressing the growing mountain of sovereign debt confronting nations around the world.

“We do have to grow our way out of it,” Bessent said.

He presented the United States’ economic strategy as a blueprint for long-term strength, pointing to deregulation, energy independence, improved banking rules and possible debt restructuring for developing countries.

But the summit is unfolding amid renewed hostilities between the United States and Iran, as well as rising tensions with Canada after trade negotiations broke down and tariffs escalated.

In an interview Sunday, Bessent said the administration plans to increase pressure on Iran by sanctioning another bank under what he calls “Operation Economic Outcast.” Earlier this month, the administration moved to restrict the operations of an Egyptian bank in the United Arab Emirates.

Bessent said the United States is prepared to impose severe financial penalties if necessary.

“I think it could be within weeks or months,” Bessent said when asked how long it could take to cripple Iran’s economy. He added that the goal is not necessarily total economic collapse, but persuading Iran’s regime to “come to their senses.”

The European Union has voiced support for increased pressure on Tehran. In a statement Sunday, the bloc said it welcomed additional economic measures and would work with the United States and other partners to maintain pressure on Iran.

Bessent is seeking broader international cooperation, particularly in limiting Iran’s ability to sell oil and access global banking systems. China remains a major obstacle because it is the largest buyer of Iranian oil.

Bessent said all options are on the table regarding potential sanctions against Chinese entities that continue purchasing Iranian crude. He rejected suggestions that the administration is hesitant to confront Beijing, calling that idea a false narrative.

The Treasury secretary said China and the United States share an interest in reopening the Strait of Hormuz and preventing Iran from developing a nuclear weapon.

Experts warn, however, that sanctions targeting major Chinese banks could trigger retaliation and disrupt energy markets. Nicholas Mulder, a Cornell historian who studies sanctions, said a large designation could cause serious upheaval. He also warned that disruption of global oil flows could increase inflation and force the Federal Reserve to raise interest rates.

Former Assistant Secretary of State Daniel Fried said the United States may have difficulty rallying traditional allies while simultaneously imposing tariffs and pursuing a more confrontational foreign policy. He said the administration would need to consult more closely with partners.

Russia was also represented at the meetings. Finance Minister Anton Siluanov met with Bessent on Monday, despite criticism from European officials over Russia’s ongoing war in Ukraine.

Asked why Russia had been invited back to the G20, President Donald Trump said, “We like getting along with everybody.”

The meetings are taking place in Asheville, a city rebuilding after Hurricane Helene devastated parts of the region in 2024.

For Bessent, the location offered a fitting symbol: a community recovering from disaster while the world’s leading economies debate how to rebuild growth, reduce debt and strengthen their financial foundations.

PHOTO- Finance Minsters convene for the Plenary Session of Current Economic Developments at the G20 Finance Ministerial in Asheville, N.C., Monday, Aug. 31, 2026. (AP Photo/Gerald Herbert)