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US sanctions major Egyptian bank over Iran ties
🇸🇬 Singapore /Economy & Trade

US sanctions major Egyptian bank over Iran ties

From CNA · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources New plan
  • The US Treasury Department plans to cut off UAE branches of Egypt's Banque Misr from the US financial system.
  • This action is part of a broader US strategy to economically pressure Iran by limiting its access to global finance.
  • The measure will take effect after a public comment period, with Egypt's central bank in contact with US officials.

The United States is taking a significant step to "choke Iran off economically," targeting a major Egyptian bank's access to the US financial system. The Treasury Department announced plans to cut off UAE branches of Banque Misr, Egypt's second-largest bank, from US financial institutions.

Washington has "warned that Iran's enablers cannot continue to enjoy access to the US dollar and the global financial system."

— Scott BessentUS Treasury Secretary Scott Bessent explaining the rationale behind the action.

Treasury Secretary Scott Bessent stated that Iran's "enablers cannot continue to enjoy access to the US dollar and the global financial system." He added that Banque Misr UAE "decided to find out the hard way" and that the action is "holding it accountable for its continued, egregious support of the Iranian regime."

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.

— Scott BessentUS Treasury Secretary Scott Bessent announcing the action against Banque Misr.

The move, which impacts only the UAE branches of Banque Misr and their US dollar correspondent banking, will be subject to a month-long public comment period. Egypt's central bank confirmed it is in contact with US officials regarding the measures, emphasizing they do not extend to the broader Egyptian banking sector.

are in contact with the American side regarding these measures.

— Egypt's central bankEgypt's central bank commenting on the US action.

This action comes amid escalating tensions in the Middle East, following US-Israel strikes on Iran and Tehran's retaliation, which disrupted traffic through the Strait of Hormuz and sent global oil prices soaring. Bessent vowed an "economic D-Day" on Iran, warning countries against non-compliance.

US measure is limited to transactions of Banque Misr branches in the UAE "with correspondents in US dollars only, and none of these measures extend to any of the banks in the Egyptian banking sector."

— Egypt's central bankEgypt's central bank clarifying the scope of the US sanctions.
About this summary

Originally published by CNA in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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