The Trump administration plans to sanction another bank as it intensifies financial pressure on Iran.
Washington is also considering sanctions on China over its continued purchases of Iranian oil.
The tougher Iran strategy comes as the US faces renewed military tensions in the Strait of Hormuz.
The Trump administration plans to impose sanctions on another bank this week as it intensifies efforts to economically isolate Iran, US Treasury Secretary Scott Bessent told The Associated Press, signalling a sharper shift towards financial pressure amid renewed hostilities in the region.
“This is going to be financial violence if we have to,” Bessent said, warning Iran-linked financial institutions and traders that Washington knows their identities and activities.
Bessent did not name the bank that will face sanctions. His comments came ahead of Group of 20 meetings in Asheville, North Carolina, where he is expected to press counterparts from major economies to cooperate with the US campaign against Iran.
US Signals Tougher Action Against Iran, China
The planned sanctions come as the Trump administration seeks to intensify economic pressure on Iran after signalling an “economic D-Day” campaign aimed at cutting off Tehran’s remaining financial lifelines.
The shift towards economic pressure, however, comes alongside renewed military action. US forces on Sunday struck Iranian rocket launchers near the Strait of Hormuz, marking the first American military action in the area in a month. Iran in retaliation struck US millitary bases in Jordan.
Washington is also weighing how far it is prepared to go against Iran’s major trading partners, particularly China, which is Tehran’s largest trading partner and biggest buyer of Iranian oil.
He rejected suggestions that the administration was reluctant to confront China, calling that narrative “completely false”. Bessent said Washington and Beijing shared an interest in reopening the Strait of Hormuz and preventing Iran from developing nuclear weapons.
Bessent Pushes G20 To Tackle China’s Trade Surplus
U.S. Treasury Secretary Scott Bessent said that he will urge G20 members to review trade terms with China and push Beijing to shift its economy from exports toward domestic consumption, Reuters reported.
Calling China’s estimated $1.2 trillion trade surplus unsustainable, Bessent said the country was trying to “export its way out” of weak domestic demand. His comments come as the U.S. rebuilds its tariff policy following legal setbacks.
While high U.S. tariffs have curbed Chinese imports, Chinese goods have increasingly flowed into Europe and Latin America. Bessent warned industrial economies they now face difficult choices over how to respond to the growing import surge.
Bessent Faces Pressure Over US Debt
The Treasury secretary's Iran strategy comes as he faces separate scrutiny over US fiscal policy and an unusual intervention in the bond market.
Bessent said he was working with Office of Management and Budget Director Russ Vought on a fiscal package aimed at reducing the US debt and deficit, which he said would be unveiled in the coming weeks.
Bessent defended the administration's approach, saying the US was not yet at a point where “extreme measures” were necessary. He also argued that higher bond yields were part of a broader global trend.
Meanwhile, the Treasury has faced criticism after barring reporters from The New York Times, The Wall Street Journal and Bloomberg News from covering the G20 meetings. The New York Times called the decision an attempt to undermine independent journalism and evade public scrutiny. Bessent denied that the exclusions were related to the outlets' viewpoints.
