Scott Bessent leads the administration's first move to isolate Iran by cutting off Banque Misr UAE from the U.S. financial system.

The administration announced that it will revoke the UAE branches of Egypt’s second-largest bank, Banque Misr, from the U.S. financial system. Treasury Secretary Scott Bessent stated that the move is the first public action under a new pressure campaign, dubbed Operation Economic Outcast, designed to squeeze the Iranian regime. The Treasury Department accused the bank's UAE operations of serving as a significant conduit for Iranian shadow banking, processing approximately $1.8 billion for 103 companies between January 2024 and June 2026. This action follows a broader effort by the administration to pressure Iran economically as military force has failed to deliver a quick victory. While Iran has rejected the sanctions, the administration is using the USA PATRIOT Act to hold the bank accountable for its egregious support of Tehran. The move is expected to be finalized after a 30-day public comment period. Simultaneously, the administration sanctioned the general manager of the Dubai branch of Bank Melli and a Hong Kong-based front company for aiding Iranian money laundering.

Sources

• Al Jazeera
  Banque Misr, Egypt’s second-largest bank, hit by US sanctions: What to know

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Paywall and unreadable sources

• WSJ
  A Core Egyptian Bank Gets Caught Up in Treasury’s Iran Crackdown
• WSJ
  Opinion | Trump’s New Iran Sanctions Put China on Notice
• AP News
  US targets Egyptian bank’s UAE branches under new push for Iran’s economic isolation
• Reuters
  UAE, Egyptian central banks say they are coordinating on Banque Misr after US Treasury notice