Kathmandu— United States Treasury Secretary Scott Bessent has warned that Iran is at risk of economic collapse within weeks or months as a result of newly imposed sanctions. These warnings came during a meeting of G20 finance ministers and central bank governors in Asheville, North Carolina. The goal of the sanctions, part of an operation called 'Operation Economic Outcast,' is to compel Iran into negotiations by creating economic hardships.

Sanctions Impact

Bessent stated that Iran is taking the US’s newly imposed sanctions seriously. The latest round of penalties hit five sectors of Iran's economy, including aviation, digital assets, gold, technology, and shipping, as well as 60 specific individuals and vessels. Bessent believes these measures are causing significant economic strain on Iran, leading to a potential collapse within weeks or months.

International Support

The US Treasury Secretary also highlighted support from trading partners like the European Union (EU), which has backed the sanctions with “fulsome support.” The EU’s statement welcomed efforts aimed at ensuring Iran ceases destabilizing activities and engages in peace negotiations. This international backing underscores the coordinated approach to economic pressure on Iran.

Future Sanctions

Bessent indicated that more sanctions are likely, with new penalties expected weekly. The next step could involve cutting off financial institutions entirely from the dollar-based system. He emphasized that the US is targeting banks and their dealings with Iranian money to further isolate Iran economically.

Market Reactions

The growing tensions between the US and Iran have impacted global markets, particularly in energy prices and gold. Since February 28, when the US and Israel first struck Iran, energy market prices have risen significantly, with petrol prices up by 24.6 percent over the last year. Meanwhile, gold prices fell to a two-week low as investors reacted to economic uncertainty.

(With inputs from Al Jazeera)

Originally published on abcnews.com.np.