US Treasury Chief Says Iran Sanctions Working, Hormuz Will Be Bypassed

US Treasury Secretary Scott Bessent used the sidelines of the G20 finance ministers' meeting in North Carolina to press Washington's case on Iran and defend its tariff policy to wary allies.

Speaking on Tuesday, Bessent asserted that the combination of sanctions and a naval blockade is economically strangling Tehran. He claimed Iran, despite possessing vast energy resources, is now forced to import gasoline and has resorted to printing money to pay state employees and troops. "Sanctions plus a blockade work," he said.

Bessent also predicted that the strategic importance of the Strait of Hormuz would soon diminish. While acknowledging the waterway is not a chokepoint for the US, he said it is for many other nations. However, he argued that within two years, oil transport would shift to overland pipelines, rendering the strait "a worthless piece of water."

On the diplomatic front, Bessent suggested there is common ground with Beijing. He stated that China agrees Iran must not acquire a nuclear weapon and supports freedom of navigation in the strait, noting that private discussions with Chinese officials are ongoing to achieve these goals.

Addressing concerns from G20 partners over US tariffs, Bessent framed them as a driver of domestic industrial growth. He pointed to a boom in capital expenditure on factories and equipment, which he said is creating construction jobs as a precursor to manufacturing employment.

He also issued a warning to the Iranian leadership, saying the US knows where their overseas assets are held, including in the British Virgin Islands, and intends to freeze them, with proceeds potentially going to the Iranian people or victims of terrorism.