The U.S. Treasury Department announced plans to restrict the access of Banque Misr’s branches in the United Arab Emirates (UAE) to the U.S. financial system, marking one of the first steps in Washington’s intensified effort to curb Iran’s economic activities. The move, unveiled on August 28, aims to block the UAE branches of Egypt’s second-largest bank from conducting transactions in U.S. dollars, a significant impediment to their international operations.
Treasury Secretary Scott Bessent emphasized the administration’s intention to sever all remaining financial lifelines supporting Tehran. In a statement, he asserted that the U.S. would no longer tolerate Iran’s financial enablers maintaining access to the dollar and global markets, warning that Banque Misr UAE’s continuing support for Tehran would carry consequences.
The measure includes a restriction preventing U.S. financial institutions from opening or maintaining correspondent accounts for Banque Misr UAE. The Treasury estimates that from January 2024 through June 2026, the bank processed about $1.8 billion for over 100 companies linked to Iran’s shadow banking networks. These networks reportedly enable Iran to mask illicit oil revenue and evade existing sanctions to obtain foreign currency.
The action announced is subject to a 30-day public comment period before taking effect and represents the first concrete step following Bessent’s declaration of “economic D-Day” against Iran earlier this week. However, the scope of the measures against Banque Misr UAE is relatively narrow, reflecting Washington’s cautious approach toward targeting more significant financial actors, especially state-backed entities and banks in China deeply involved in Iran’s economy.
U.S. officials are preparing for a high-level meeting next week, where finance ministers from approximately 20 countries will discuss further strategies to intensify pressure on Iran’s financial networks. Analysts note that without addressing the role of Chinese institutions—responsible for nearly 45% of Iran’s government budget through oil purchases and complex money-laundering methods—the impact of sanctions may remain limited.
Additional actions announced included sanctions on the general manager of the Dubai branch of Iran’s Bank Melli and a Hong Kong-based company accused of facilitating money laundering on behalf of an Iranian entity under U.S. sanctions.
Observers describe the recent announcements as extensions of long-standing sanctions practices rather than a significant policy shift. Max Meizlish, a former Treasury official and sanctions expert, characterized the measures as a continuation of traditional designations, lacking the breadth and immediacy suggested by the “economic D-Day” rhetoric.
The Treasury’s measured approach may reflect diplomatic and practical considerations ahead of broader efforts planned in the coming weeks to disrupt Iran’s financial operations more comprehensively.