Washington to link dollar access to Iran sanctions at G20 talks in Asheville

The potential loss of access to the dollar-based financial system for G20 members that do not comply with Iran sanctions adds a new layer of geopolitical risk to energy and shipping markets connected to Iran. The administration's focus on trade imbalances and excess capacity, terms often applied to China's export model, points to ongoing tensions over global trade flows despite the meeting's cooperative growth agenda. Bond markets will closely watch any Treasury signals about long-dated bond buybacks, given the higher yields seen since the Iran conflict began.

---

Coming up prior:

• Here's the full agenda for the Jackson Hole Fed symposium

---

Through its role as G20 host, Washington is linking ongoing access to the dollar-based financial system directly with adherence to its Iran sanctions.

Summary:

• The Trump administration is seeking G20 finance leaders' agreement on steps to spur growth, reduce global imbalances and tackle sovereign debt, while also urging members to break ties with Iran, according to a Treasury official.
• Bessent will host G20 finance ministers and central bank governors on Monday and Tuesday in Asheville, North Carolina, after the US sat out last year's G20 process led by South Africa.
• Growth talks will centre on trade imbalances, resilient critical-resource supply chains including energy, and backing private-sector innovation, with business leaders taking part to discuss investment obstacles.
• On bond yields, the official said they would fall as inflation moderates, while Treasury separately works to reduce longer-maturity yields through larger buybacks of 10- to 30-year Treasuries.
• Bessent is expected to tell G20 counterparts that compliance with US Iran sanctions is required to maintain dollar-based financial system access, an issue set to arise in every bilateral meeting he holds.

Main article: The Trump administration aims to win G20 finance leaders' backing next week for steps to boost global growth, reduce imbalances and tackle sovereign debt challenges, while pressing them to cut remaining Iran ties, a senior Treasury official said on Thursday. Treasury Secretary Scott Bessent will host G20 finance ministers and central bank governors on Monday and Tuesday in Asheville, North Carolina, resuming active US involvement after Washington skipped last year's process overseen by South Africa.

The official said the administration remains focused on correcting global trade imbalances to benefit American workers, pushing economies to compete through productivity and innovation rather than policies that flood markets with excess capacity — phrasing that mirrors the administration's frequent description of China's export model, though the official did not single out China. Growth talks will also cover resilient supply chains for critical resources, including energy, and supporting private-sector innovation, with business leaders joining to discuss investment barriers and regulatory reform.

On rising US debt and bond yields, which have climbed since the US and Israel began their campaign against Iran in late February, the official said yields should decline as inflation cools, while Treasury is separately working to lower longer-maturity yields through larger buybacks of 10- to 30-year Treasuries.

The sharpest element concerns Iran. Following Treasury's warning this week that countries risk secondary sanctions if they do not cut Iranian business ties, the official said Bessent will tell G20 counterparts that ongoing dollar-based financial system access is contingent on sanctions compliance, an issue expected to come up in every bilateral meeting he holds during the summit.