Volkswacht Bodensee - US vows to keep economic pressure on Iran as G20 finance talks begin

"We are going to continue exerting pressure, and we've had very good discussions here already," Bessent told reporters before starting meetings with Group of 20 finance ministers and central bank governors.

He said a turning point in this US pressure campaign could come "within weeks or months," adding that Iran's economy need not collapse in the Middle East war to achieve this.

President Donald Trump's administration is working to rally G20 partners to ramp up economic pressure on Iran during the talks in Asheville, North Carolina, through Tuesday -- amid a renewed exchange of fire with Tehran.

The first exchange of attacks for a month loomed over the meetings as leaders arrived Monday morning at the foggy, mountainous compound of the Omni Grove Park Inn.

Already, the European Union urged "continued diplomatic efforts" to reach a peace settlement.

It welcomed efforts aimed at ensuring Iran ceases its "destabilizing activities and engages in peace negotiations with good faith," including through US-led economic pressure.

French Finance Minister Roland Lescure told reporters that officials would listen to the US plans.

"We all need to work on this. The US have got a view on how to enhance sanctions. We're going to discuss with them whether we can help on that front," he said.

The G20 comprises 19 nations plus the EU and the African Union. It was established in the wake of the 1997-1998 Asian financial crisis to boost global economic and financial stability.

- 'Ready to discuss' -

Also weighing on the talks are Trump's trade wars, with observers monitoring if the G-20 can still work together to address big economic challenges.

Analysts warn that a US-Canada trade fight impacts unity among the Group of Seven advanced economies as the countries broach tough issues in the wider grouping.

G7 finance ministers are also expected to meet on the margins of the Asheville talks.

"Canada has always been at the table and constructive, ready to discuss," Finance Minister Francois-Philippe Champagne told reporters Monday.

He stressed the need to ensure continued economic growth and "bring back some stability in trade, which will benefit all the countries represented here today."

Bessent skipped last year's meeting led by South Africa, which has been excluded from the group by the US. Washington holds the rotating presidency this year.

Instead, US officials invited Poland to the table, although it is not a permanent G20 member.

A Russian representative is participating, too. A European official speaking on condition of anonymity expressed disapproval that Moscow -- at war with Ukraine since its 2022 invasion -- was not excluded.

EU economy chief Valdis Dombrovskis said G7 talks will discuss continuing support for Ukraine, besides the Middle East conflict.

Beyond promoting economic growth, US priorities this year include dealing with "global imbalances" and sovereign debt challenges.

G20 discussions will seek to ensure that economies avoid policies that push excess production into global markets, a US official said last week.

This echoes criticism of China's excess industrial capacity, which critics say drives down prices and causes unfair competition.

Certain reporters from major US newsrooms, including The New York Times and Bloomberg News, were not granted credentials to cover the gathering.

A Treasury spokesperson said it plans to welcome nearly 300 media representatives from around a dozen countries.

All eyes will be on bilateral meetings on the sidelines of the summit too, where Bessent is set to make direct appeals to counterparts as Washington pushes to isolate Iran economically.

A Treasury official said Bessent will deliver a strong statement to the G20 to urge compliance with US sanctions.

Business leaders including JPMorgan Chief Executive Jamie Dimon are also present at G20 discussions this year on barriers to investment, innovation and productivity.

K.Hofmann--VB