U.S. targets Egyptian bank's UAE branches in new push to isolate Iran

The Trump administration is escalating its economic pressure campaign against Iran by targeting the United Arab Emirates branches of Egypt's second-largest bank, Banque Misr. A proposed rule from the U.S. Treasury Department aims to cut these branches off from the American financial system, accusing the bank of providing a crucial economic lifeline to Iran's leadership.

This move comes as the U.S. war against Iran reaches its six-month mark. Treasury Secretary Scott Bessent recently announced a new initiative to compel nations still engaging in business with the heavily sanctioned Islamic Republic to cease their financial dealings. Failure to comply could result in U.S. retaliation.

However, the administration is stopping short of imposing full sanctions on Banque Misr, signaling a reluctance to penalize major trading partners like China and India. Bessent stated that countries should have an opportunity to shift their business away from Iran to avoid disrupting the global financial system. The proposed rule will undergo a 30-day public comment period before taking effect.

"The Trump administration warned that Iran's enablers cannot continue to enjoy access to the U.S. dollar and the global financial system," Bessent said in a statement. "Banque Misr UAE decided to find out the hard way, and today, we are taking the first step in holding it accountable for its continued, egregious support of the Iranian regime."

Egypt's foreign ministry and central bank acknowledged the proposed rulemaking and are in communication with U.S. officials. The Central Bank of Egypt clarified that the measure specifically targets the bank's dollar transfers within the UAE and does not affect its operations in Egypt or other overseas branches. The CBE affirmed the strength and resilience of Egyptian banks. Concurrently, the U.S. Treasury also announced new sanctions targeting the manager of the Dubai branch of Iran's Bank Melli and a Hong Kong-based firm accused of facilitating illicit fund transfers for Iran.

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The Trump administration warned that Iran's enablers cannot continue to enjoy access to the U.S. dollar and the global financial system. Banque Misr UAE decided to find out the hard way, and today, we are taking the first step in holding it accountable for its continued, egregious support of the Iranian regime.