United States Treasury Secretary Scott Bessent stated on Oct. 31, 2025, that sanctions could cause the Iranian economy to collapse within weeks or months, linking the country’s rising military aggression to mounting financial desperation. Speaking with reporters at the G20 finance ministers and central bankers meeting in Asheville, North Carolina, Bessent argued that Washington can successfully squeeze Tehran’s finances even without the cooperation of Beijing, according to AP and Reuters reports.
Scott Bessent Claims Iran Economy Faces Collapse Within Weeks
According to AP, Treasury Secretary Scott Bessent told reporters in Asheville, North Carolina, that the Iranian economy could collapse in “weeks or months.” Bessent clarified that total economic ruin is not the primary objective of the U.S. campaign. He noted that the ultimate goal of the financial pressure is to force the Iranian regime to change course and enter negotiations.
Bessent argued during a CNBC interview that recent military actions by Iran serve as clear proof that the administration’s economic isolation strategy, dubbed “Operation Economic Outcast,” is working. He stated that Tehran is lashing out militarily because it is losing the economic battle. Inflation is soaring and the Iranian currency is plummeting, which has prompted even elected officials inside Iran to voice public complaints about the deteriorating financial conditions, according to Bessent.
Did you know? The U.S. Treasury Department targeted five sectors of the Iranian economy—aviation, digital assets, gold, technology, and shipping—adding 60 new targets, including individuals and vessels, to its sanctions list.
U.S. Targets Sanctions Evasion and Dismisses China Reliance
Washington continues to ramp up enforcement against entities facilitating Iranian transactions. On Oct. 28, the U.S. cut off United Arab Emirates branches of Egypt’s state-owned Banque Misr from the American financial system due to suspected financial dealings with Iran. Bessent stated in a Reuters interview that the Treasury plans to roll out additional sanctions on a near-weekly basis.
Addressing the common assertion that U.S. pressure requires Beijing’s buy-in given China’s status as the top buyer of Iranian crude, Bessent pushed back. He told CNBC that the idea that Washington cannot succeed without Beijing is a “false narrative created by the media.” Bessent maintained that U.S. blockades have reduced the amount of Iranian oil remaining at sea to just 30 million barrels, meaning any remittances from China will eventually dry up. By cutting off exportable crude directly, Washington aims to choke off Tehran’s revenue regardless of China’s trade or financial cooperation.
U.S. and China Share Interests on Iran Nuclear Stance
Despite disagreements over sanctions enforcement, Bessent noted that the U.S. and China share common ground regarding regional stability. He stated that Beijing opposes a nuclear-armed Iran and supports the free and fair passage of commercial vessels through the Strait of Hormuz. Bessent confirmed he held an in-depth meeting with People’s Bank of China Governor Pan Gongsheng, though he did not disclose whether Iran was specifically discussed.
When asked by AP whether the U.S. might penalize Chinese crude buyers, refineries, or financial institutions for continuing to purchase Iranian oil, Bessent declined to rule it out, stating simply that “all options are on the table.”
Frequently Asked Questions
What is the goal of U.S. economic pressure on Iran?
According to Treasury Secretary Scott Bessent, the objective is not necessarily to cause a total economic collapse, but rather to force the Iranian leadership to alter its behavior and return to the negotiating table.
Why is the U.S. targeting shipping and financial institutions?
The Treasury Department is cutting off networks that facilitate Iranian trade and finance—such as penalizing UAE branches of Egypt’s Banque Misr—to stop Tehran from generating revenue through key sectors like oil, shipping, and digital assets.
Does Washington need Beijing’s help to enforce sanctions?
No. Treasury Secretary Scott Bessent stated that the U.S. can succeed in isolating Iran’s economy without China’s cooperation, arguing that American blockades have limited remaining Iranian oil at sea to 30 million barrels.
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