Bessent hosts G20 amid Iran war

U.S. Treasury Secretary Scott Bessent hosted the G20 finance ministers and central bank governors meeting in Asheville, North Carolina, on Monday and Tuesday, seeking to revamp the forum under U.S. leadership. The agenda focused on shrinking global trade imbalances, boosting growth, and tightening sanctions on Iran, while addressing concerns over rising U.S. debt and bond yields. The meeting occurred amid massive uncertainty over the Trump administration's tariff moves, a festering trade war with Canada, and high energy prices due to the Iran war, which has kept the Strait of Hormuz closed. Bessent warned that countries face secondary U.S. sanctions if they continue buying Iranian oil, and he imposed curbs on an Egypt-based bank over links to Iran. The U.S. had previously imposed tariffs on 60 economies, including all G20 members and the EU, and planned more tariffs on 16 trading partners. China's export surge, particularly into Europe, was a key topic, with the IMF estimating the yuan is undervalued by 21%. U.S. public debt crossed $40 trillion on August 19, and 30-year Treasury yields reached 19-year highs, prompting Bessent to double Treasury buybacks to $4 billion per operation, a move criticized by Stanley Druckenmiller. Bessent also intervened in currency markets, supporting the yen with Japan and purchasing Argentina — Argentine pesos. The meeting highlighted deep fractures among G20 members over trade, sanctions, and fiscal policies.