LIVE: White House briefing with Treasury Secretary Bessent
TL;DR
Treasury Secretary Scott Bessent outlined stringent conditions for any Iran nuclear deal—including opening the Strait of Hormuz and complete uranium handover—while confirming the administration opposes central bank digital currencies and is targeting $500 billion in annual fraud to reduce the deficit.
🌍 Iran Nuclear Negotiations & Middle East Policy 4 insights
Non-negotiable deal terms
Bessent stated no agreement is possible without Iran opening the Strait of Hormuz, surrendering all highly enriched uranium, and permanently abandoning its nuclear program, with sanctions relief strictly commensurate to verified concessions.
Fragmented Iranian leadership
The administration assesses that Iran's government is now divided among elected officials, the IRGC, and clerics who 'are having trouble communicating' following the elimination of the first two layers of leadership.
Oman diplomatic assurance
Following President Trump's threats regarding the Strait, Bessent spoke with the Omani ambassador who confirmed no plans to implement tolls and emphasized 200 years of bilateral relations.
Airline sanction enforcement
Treasury is targeting Iranian state-owned airlines by sanctioning any entity providing refueling, landing fees, or ticket processing, while exempting religious pilgrimages to Mecca and Medina.
💰 Digital Assets & Currency Policy 3 insights
CBDC prohibition
The administration has explicitly ruled out creating a central bank digital currency to prevent potential government tracking of American spending patterns.
Stablecoin legislation push
Bessent urged Congress to pass the bipartisan CLARITY Act to establish regulatory frameworks for stablecoins, aiming to bring digital asset markets onshore from the current 'wild west' offshore environment.
Trump $250 bill contingency
While current law prohibits living persons on currency, Treasury has prepared advance designs for a potential $250 bill featuring President Trump pending Congressional legislation to change the requirement.
📉 Economic Strategy & Federal Reserve 3 insights
Fraud-driven deficit reduction
Citing GAO estimates of $500 billion in annual fraud, Bessent outlined a plan to cut the $1.8 trillion deficit toward 3% of GDP, noting the administration already reduced the inherited 6.7% deficit to approximately 5.4%.
Weekly Fed coordination
Bessent established a pattern of weekly breakfasts with Federal Reserve Chair Powell, expressing confidence the Fed will balance inflation and growth to achieve 'substantial disinflation' and lower interest rates.
Consumer resilience metrics
Despite the lowest personal savings rate in four years, Bessent cited strong consumer spending, high tax refunds, and low unemployment across all income quintiles as evidence of underlying economic durability.
⚖️ Investigations & Legal Enforcement 3 insights
IRS leak settlement
Bessent referred questions regarding the IRS settlement over the leak of 400,000+ tax returns—including the Trump family's—to Acting Attorney General Todd Blanche, citing ongoing litigation.
Antifa funding probe
Treasury and the FBI are actively investigating Antifa financing, with Bessent announcing new IRS guidance requiring nonprofits to verify grant recipients aren't funding violent activities or rights suppression.
Flexible Cuba sanctions
Sanctions pressure on Cuba can escalate or ease depending on regime behavior, particularly regarding acceptance of humanitarian aid, which the current regime has allegedly rejected to prevent bypassing their 'corrupt system.'
Bottom Line
The administration demands Iran completely abandon its nuclear program and guarantee freedom of navigation before any sanctions relief, while pursuing domestic stability through fraud elimination, strict prohibition of central bank digital currencies, and close coordination with the Federal Reserve.
More from Reuters
View all
LIVE: Treasury Secretary Bessent speaks at Reagan National Economic Forum
Treasury Secretary Scott Bessent outlines the Trump administration's economic doctrine that economic security is national security, detailing executive actions to reshore critical manufacturing and reduce dependence on foreign supply chains for minerals, pharmaceuticals, and maritime capacity.
LIVE: Jamie Dimon speaks at Reagan National Economic Forum
Jamie Dimon warns that geopolitical 'tectonic plates'—including Iran, Ukraine, and global rearmament—dwarf short-term economic concerns, while outlining JPMorgan's $1.5 trillion initiative to reshore critical supply chains and arguing that dollar dominance depends on maintaining unmatched military strength and deep Western economic alliances.
LIVE: UN Security Council meets on Ukraine
The UN Security Council convened to address Russia's largest aerial assault on Ukraine since the invasion began, featuring 90 missiles and 600 drones that struck civilian infrastructure, cultural sites, and UN facilities, as Secretary-General Guterres and member states demanded an immediate unconditional ceasefire to prevent further catastrophic escalation.
LIVE: JD Vance speaks at US Air Force Academy commencement
The United States Air Force Academy's Class of 2026 commencement ceremony celebrated a record-breaking cohort of warrior leaders, highlighting their academic excellence, athletic dominance, and military readiness during the nation's 250th anniversary year, while emphasizing servant leadership and the legacy of Medal of Honor recipient Master Sergeant John Chapman.