US Officials Signal Ahead of G20: Bessent May Warn Nations to Comply with Iran Sanctions or Lose Dollar Settlement Access

US Treasury officials told media that Bessent will issue a warning at next week's G20 finance ministers' meeting, demanding participating countries comply with Iran sanctions or face removal from the dollar system or secondary sanctions. The meeting will also focus on global economic growth, supply chain resilience, and reducing trade imbalances, while US officials also responded to concerns about high US Treasury yields.

The United States is extending its economic pressure campaign against Iran into multilateral diplomatic venues, using access to the dollar system as leverage to pressure allies.

According to a Reuters report on the 28th, a senior US Treasury official said Thursday that Treasury Secretary Bessent will send a "strong signal" to delegates at next week's G20 finance ministers and central bank governors meeting: countries must comply with US sanctions against Iran if they wish to continue doing business in the Western financial system based on the dollar. The official said the issue is expected to come up in Bessent's bilateral meetings with every G20 counterpart.

Earlier, according to Xinhua, US Treasury Secretary Bessent held a press conference on the 24th local time to announce economic sanctions against Iran, further increasing pressure on Iran. According to CCTV News, Bessent said any entity laundering money for Iran will be removed from the dollar system. Bessent also said the US will expand the scope of secondary sanctions on countries with commercial ties to Iran and urged relevant countries to make a choice.

Iran responded quickly and firmly. Iranian Parliament Speaker Qalibaf said Iran's trade partners "will not take seriously" the US sanctions rhetoric, while Supreme Leader adviser Mokhber said Iran's response will be more resolute than before.

Sanctions Warning on G20 Bilateral Agenda

The G20 finance ministers and central bank governors meeting will be held from August 31 to September 1 in Asheville, North Carolina, hosted by Bessent. This is also the first major appearance of the US reasserting leadership of the multilateral agenda after avoiding the South Africa-led G20 process last year.

The senior Treasury official said Iran sanctions are a "key issue" at the meeting, and Bessent will proactively raise it in every bilateral meeting to ensure all G20 members are aligned on implementation. Bessent has previously made clear that any entity laundering money for Iran will be removed from the dollar system, and the US will expand the scope of secondary sanctions on entities and countries maintaining commercial ties with Iran, while Trump is contacting leaders of other countries to seek support for US economic actions against Iran.

G20 Agenda Focuses on Growth and Global Imbalances

In addition to Iran sanctions, according to Reuters, the Treasury official said the Trump administration hopes G20 finance ministers will reach consensus on promoting economic growth, reducing global imbalances, and addressing sovereign debt challenges.

On trade imbalances, the official said G20 discussions will aim to ensure economies "compete on productivity, innovation, and investment, rather than relying on policies that export excess capacity to global markets." In the interview, he also noted that as the US tightens trade barriers, other G20 economies have come under "significant dumping pressure," but did not name specific source countries.

On supply chains, the US will focus G20 discussions on building resilient supply chains for critical resources such as energy and supporting private sector innovation to drive productivity growth. The meeting will also invite business leaders to discuss investment barriers, regulatory reform, and other topics.

High Bond Yields a Potential Pressure Point

Asked how Bessent will respond to other G20 finance ministers' concerns about rising US debt levels and higher bond yields, the Treasury official said bond yields, which have remained elevated since the US-Israel attack on Iran in late February, will gradually decline as inflation cools.

The official also stressed that the Treasury is working to lower long-end yields, citing Bessent's expansion of buybacks for 10-year to 30-year Treasuries as evidence.