The meeting takes place as the United States disrupts the international order with aggressive tariffs on key allies.
Read more Don’t rush to throw away yellowed pillows: this simple trick will help save them
The US also continues an unpopular war in the Middle East with Iran, which keeps fuel prices high for consumers. On Monday in Asheville, starting the G20 finance ministers’ meeting, S. Bessent said he aims to focus on promoting global economic growth and managing rising debt.
However, the event takes place amid renewed hostilities between the US and Iran and increased trade friction with Canada, caused by failed negotiations and resulting higher tariffs.
S. Bessent said in an interview with the AP news agency on Sunday that he plans to increase pressure on Iran by sanctioning another bank.
Earlier this month, the administration took steps to restrict the operations of an Egyptian bank in the United Arab Emirates (UAE). He stated that the administration is ready to take “financial coercion” measures if necessary.
Asked on Monday how long it would take for Iran’s economy to collapse, S. Bessent replied: “I think it could happen within weeks or months – and the economy doesn’t necessarily have to collapse, we just need the regime to come to its senses.”
S. Bessent said the European Union (EU) has fully supported his sanctions efforts. In a statement released by the EU on Sunday, it expressed support for additional economic pressure on Iran and cooperation with the US and other partners to continue pressure on the country.
French Finance Minister Roland Lescure told reporters he hopes the G20 will issue a joint statement on an agreed path for global economic growth. According to him, the world economy is “a bit like the weather in Asheville – unpredictable and foggy.”
The Russian Finance Minister is also participating in the meeting
The Russian Ministry of Finance reported that Finance Minister Anton Siluanov met with S. Bessent on the sidelines of the meeting on Monday.
When asked why a Russian official was invited to the meeting despite the invasion of Ukraine that began more than four years ago, US President Donald Trump replied: “We like to get along with everyone.”
S. Bessent conveyed to A. Siluanov that the US will not provide economic assistance to Russia until it ends the war, said a source familiar with the meeting who spoke anonymously.
According to the source, A. Siluanov tried to discuss issues important to him, but S. Bessent sharply interrupted him, stating that no actions are possible until the war ends.
It may be difficult to unite allies
Daniel Fried, former Assistant Secretary of State for European Affairs in the George W. Bush administration, said that under these circumstances, the US may find it “difficult to rally its usual friends and allies.”
Read more “Maximos LT” board will include its department director Aurelija Simutė
According to him, if S. Bessent and other administration officials want international support, they will need to “consult more closely with allies and partners than the US has done in recent months.”
S. Bessent wants other countries to help the US isolate Iran and force it to capitulate in the war, which recently passed the six-month mark. Although the US struck Iran again on Sunday, the administration has previously expressed its intention to achieve goals not through military actions but economic pressure.
So far, D. Trump has not implemented economic threats against Iran, relying mostly on warnings to Iran’s trading partners. A particular challenge is China, which is Iran’s largest oil buyer.
S. Bessent said that “all options are on the table” regarding sanctions on Beijing for continued purchases.
Sanctions on China for buying Iranian oil should have consequences
Nicholas Mulder, a Cornell University historian specializing in sanctions, said: “We may see a gradual expansion of smaller lists, but including large institutions, such as a major Chinese bank, would cause serious unrest and provoke retaliatory actions.”
However, S. Bessent rejected the idea that the administration does not want to confront China, calling it a “completely false narrative.” He emphasized that China and the US agree on the need to reopen the Strait of Hormuz and prevent Iran from developing a nuclear weapon.
N. Mulder also warned that any disruption of global oil flows due to secondary sanctions would increase inflation and force the Federal Reserve to raise interest rates.
“Given that the Treasury under Bessent already has to calm growing anxiety in bond markets, it will be very difficult to reliably do the same in the sanctions enforcement space,” said N. Mulder.
G20 meetings are taking place in Asheville, which was devastated by Hurricane Helena in September 2024. The natural disaster claimed more than 250 lives and caused nearly $80 billion (about €69 billion) in damage from Florida to the Carolinas.
S. Bessent said that Asheville, recovering from the storm, is a symbolic backdrop for discussions on economic growth.
“We want the rest of the world to join us on our growth agenda, whether it’s deregulation, energy independence, and we want to discuss global imbalances, banking regulations, and debt restructuring in developing countries,” said S. Bessent.
Read more Eurostat: Unemployment in Lithuania in July was just slightly above the EU average
He added that “the world has this mountain of debt and we must grow out of it.”
