These measures are being taken against the branches of Egypt’s second largest bank, Banque Misr, in the UAE – their banking access to US financial institutions will be blocked.
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Half a year after the start of the war with Tehran, US Treasury Secretary Scott Bessent outlined Iran’s “economic strangulation” plans this week.
The Treasury Department’s decision on restrictions for the Egyptian bank’s branches in the UAE will take effect only after a one-month public consultation period.
In a statement first reported by the British business daily The Financial Times, S. Bessent noted that Washington has “warned that Iran’s (regime’s) enablers will no longer be able to continue using access to the US dollar and the global financial system.”
“Banque Misr UAE has decided to find this out the hard way, and today we are taking the first step to hold it accountable for its ongoing and blatant support of the Iranian regime,” he added.
At the end of February, the first strikes by the US and Israel against Iran provoked a response from Tehran – most traffic through the Strait of Hormuz was blocked, and the Middle East plunged into war.
This waterway is extremely important for global energy resource transit, so its blockade sparked a surge in oil prices.
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Announcing the US-declared “economic D-day” for Iran, S. Bessent warned of severe consequences for countries that do not join this campaign.
The US Treasury Secretary also said this week that President Donald Trump is appealing to world leaders to cut ties with Tehran.
The decision regarding the Egyptian bank’s branches, made public on Friday, highlights the difficulties faced by the Trump administration in targeting larger targets.
For example, one of Iran’s major oil buyers is Beijing. Before the war, Tehran exported millions of barrels of oil per day, mostly to China.
However, actions targeting Chinese institutions could impact the global economy and worsen Washington-Beijing relations ahead of Chinese President Xi Jinping’s planned visit to the US capital in September.
The Treasury Department announced on Friday that it is also imposing sanctions on the head of Iran’s Bank Melli Dubai branch and a Hong Kong-based shell company that helped launder funds for a sanctioned Iranian currency exchange.
