US Steps Up Financial Pressure On Iran, Targets Key Banking Channels

According to Reuters and the US Treasury Department, the Treasury has proposed cutting off the UAE branches of Egypt's Banque Misr from the US dollar-based financial system, alleging the bank helped facilitate financial transactions linked to Iran. The proposed action could take effect within 30 days unless the bank addresses the concerns raised by US authorities.

US Treasury Secretary Scott Bessent said Washington would do“whatever is necessary” to block Iran's access to international financial networks as part of the administration's campaign to increase economic pressure on Tehran. Treasury officials described the targeted bank as a critical node in Iran's alleged sanctions-evasion network operating through the UAE.

The move is part of the Trump administration's broader sanctions strategy, dubbed Operation Economic Outcast, which seeks to isolate Iran from global banking and trade by threatening secondary sanctions against foreign institutions that continue doing business with Tehran.

The latest measures also place renewed pressure on China, Iran's largest oil customer and trading partner. Washington has warned countries, including China, that they could face secondary sanctions if they continue purchasing Iranian oil or facilitating trade with Tehran.

China has rejected the US sanctions campaign, saying it opposes unilateral sanctions and will continue defending its legitimate economic interests. Beijing has maintained that trade with Iran should not be subject to US pressure, underscoring growing tensions between the world's two largest economies over Iran policy.

The proposed restrictions could have wider implications for regional banking, particularly in the UAE, which has long served as a major financial hub for Iranian businesses. Following the US notice, the UAE Central Bank launched an urgent review of Banque Misr's operations in the country, while the bank said it is reviewing the Treasury's allegations and continues to operate in compliance with local regulations.

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