Iranian Money Can Go To Terror Victims, Says Bessent; Warns New Sanctions For IRGC Ties

US Treasury Secretary Scott Bessent has said Iranian funds seized by Washington could be returned to the Iranian people or used to compensate victims of terrorism, while warning of fresh sanctions against those doing business with the Islamic Revolutionary Guard Corps (IRGC).

Speaking at the G20 finance meeting, Bessent said the US would announce sanctions targeting anyone that does business with the IRGC and was tracking down the group's assets.

Bessent also claimed that US military action had severely weakened Iran's military capabilities, saying the US had destroyed Iran's navy, air force and drone inventory, along with 85-90% of factories capable of producing new drones.

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He described Iran as being in extreme distress militarily and said the US blockade was having a significant impact.

“We are going to economically asphyxiate this regime,” Bessent said, adding that Iran still had a chance to return to the global economic system.

He also said the US expects other countries to support its Iran policy and confirmed that Washington has held private discussions with China on the issue.

Meanwhile, a White House official told Al Jazeera that Iran wants to reach a deal with the US, but its proposals have consistently come too late and fallen short of Washington's requirements. The official said US President Donald Trump was keeping all options on the table.

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Separately, Iranian President Masoud Pezeshkian thanked Russian President Vladimir Putin for Moscow's support during the conflict with the US and Israel.

Meeting Putin on the sidelines of the Shanghai Cooperation Organisation summit in Kyrgyzstan, Pezeshkian thanked Russia for its positions during the fighting as well as its support in international forums.

Putin had earlier offered to continue supporting Iran despite US threats against countries providing economic backing to Tehran.

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