US Treasury Secretary Scott Bessent warned that Iran's economy could collapse "within weeks or months" as Washington intensifies its sanctions campaign against Tehran.

Bessent told reporters at the Group of 20 finance ministers’ meeting in Asheville, North Carolina, that the Trump administration aims to force the Iranian regime to "come to their senses" rather than trigger a total economic implosion.

Sanctions Push Iran Deeper Into Crisis

The comments build on Operation Economic Outcast, launched on August 24 to sever Iran’s financial, oil, shipping, and trade links. Bessent stated that the Treasury expects new secondary sanctions roughly every week, beginning with banks. He previously warned that Washington is prepared to use "financial violence if we have to."

Iran is already under severe pressure. President Masoud Pezeshkian reported that foreign trade had fallen 35% due to sanctions and a US naval blockade. Annual inflation reached 66%. The Treasury also proposed cutting Banque Misr’s UAE branches off from US correspondent banking after alleging the operation processed suspected billions of dollars for Tehran over 2.5 years.

China’s Iranian Oil Trade Faces Scrutiny

The campaign places significant focus on China. According to 2025 data from analytics firm Kpler, China accounted for more than 80% of Iran’s shipped oil. This makes Beijing central to Tehran’s remaining export revenues.

Bessent said "all options are on the table" regarding sanctions tied to those purchases, rejecting claims that Washington is reluctant to confront China.

Oil Risks Complicate G20 Push

The tougher line carries global risks. Renewed US-Iran strikes pushed Brent crude above $90 a barrel on Monday. Traffic through the Strait of Hormuz remains severely disrupted. The waterway handled about one-fifth of global oil trade before the conflict.

Bessent used the G20 gathering to rally partners behind the sanctions push, noting that the European Union had offered "fulsome support," even as US tariffs and the Iran war strain relations with allies.

What the Numbers Show

The data reveals a critical dependency: with foreign trade down 35% and inflation at 66%, Iran’s economic stability relies heavily on its oil exports. Since China accounts for more than 80% of shipped oil, any successful enforcement of secondary sanctions on Beijing would directly target the vast majority of Tehran's remaining hard currency inflows, accelerating the predicted economic collapse.

Iran has warned that it will deliver a response dozens of times greater than any US attack. The statement cites the recent retaliation against strikes on Larak as evidence that no regional target is beyond Tehran's reach.

Reuters cited a senior Iranian source for the threat. The warning comes amid heightened tensions in the region.

Strait Of Hormuz Risks

Tehran stated that conditions in the Strait of Hormuz will worsen for vessels that violate its rules. This implies potential disruption to maritime traffic if compliance is not maintained.

What The Numbers Show

The source explicitly quantifies the scale of the threatened response as "dozens of times greater" than the initial attack. This multiplier indicates a strategy of disproportionate retaliation rather than symmetric tit-for-tat engagement, aiming to deter future strikes through escalated cost imposition.