Scott Bessent outlines three scenarios for Iran standoff, stresses diplomatic preference but warns of alternative measures if talks fail.
US Treasury Secretary Scott Bessent stated that any easing of the naval blockade on Iran would occur gradually, not all at once. He emphasized the administration’s commitment to diplomacy but noted that other options, including military action, remain on the table if negotiations collapse.
Bessent outlined three potential outcomes for the Iran standoff: a negotiated deal, a failure to reach an agreement, or kinetic action. He reiterated the US’s preference for a diplomatic resolution while acknowledging additional tools available if talks break down. The remarks followed discussions on the economic outlook, including expectations for real wage growth post-conflict.
On monetary policy, Bessent endorsed the Federal Reserve’s shift away from forward guidance, stating that interest rates peaked before former Fed governor Kevin Warsh’s tenure. He also defended the strength of the US dollar, arguing it reflects sound economic policies and remains unchallenged as a reserve currency.