The administration of US President Donald Trump implemented a concrete measure after Treasury Secretary Scott Bessent announced the withdrawal of 'all economic resources' from the Islamic Republic, aiming to isolate the Tehran regime.
This action seeks to prevent Banque Misr, Egypt's second-largest bank in the United Arab Emirates (UAE), from accessing American financial institutions, thereby hindering dollar transactions.
Bessent stated in a Treasury Department communiqué that those supporting Iran were warned about the impossibility of maintaining access to the US dollar and the global financial system. He added that Banque Misr UAE chose to discover this in the most complicated way, and the first step toward holding it accountable for continued support of the Iranian regime has been taken.
The US representative informed that the Treasury plans to cut off all remaining economic lifelines to Tehran, definitively ending the threat posed by the Iranian regime.
On Monday, Scott Bessent revealed the details of the 'Economic Pariah Operation' targeting Iran, intended to impose sanctions on all parties involved in business with the Tehran regime. Trump dubbed this new economic offensive against Iran the 'Economic D-Day.'
The Financial Times reported that the US Treasury measure affecting the Egyptian bank's operations in the UAE will have a 30-day period for public comment before being enforced.
The United States classified the Egyptian bank as a 'fundamental financing point for the regime' and a 'crucial link for the regime's access to the US dollar.'
The official note from the US Treasury estimated that between January 2024 and June 2026, Banque Misr UAE would have processed approximately $1.8 billion (about €1.5 billion at the current exchange rate) for 103 companies that could be part of Iranian parallel banking networks.
US authorities explained that Iran uses parallel banking networks to generate foreign revenue, circumventing sanctions, as these networks 'provide fundamental access to correspondent banking relationships in US dollars.' Furthermore, the source mentioned that Iran employs such networks to launder money, purchase arms, and fund its regional terrorist groups on behalf of others.
The US Treasury specified that among Banque Misr UAE's clients are 'shell companies' used by the Iranian Ministry of Defense and the Revolutionary Guard, the ideological army of the Islamic Republic, both to evade US sanctions and to launder money on behalf of the Iranian Supreme Leader, Mojtaba Khamenei.
The note released by the US Treasury also imposed sanctions on the manager of the Melli Bank branch in Dubai, Reza Mohammad Taeedi, and a Hong Kong-based 'shell company' that allegedly 'assisted in money laundering for an Iranian currency exchange under sanctions.'
Washington stated that Bank Melii facilitated billions of dollars in transactions through accounts controlled by the Quds Force, the elite unit of the Islamic Revolutionary Guard.
However, according to the Financial Times, the limited scope of this measure demonstrates Washington's hesitation to target other larger entities, such as major banks and state-backed entities of China, Tehran's main economic partner. The financial newspaper suggests that this apprehension may stem from the fear that harsher actions could further destabilize the global economy and markets.
This initiative comes as Bessent prepares to host the Finance Ministers of the G20 (the 20 largest and emerging world economies) in North Carolina next week. Washington's recent efforts to restrict the Iranian economy are expected to take center stage at this meeting.
The dispute between the United States and Iran completes six months without Washington managing to eliminate the Iranian nuclear program or force a regime change in Tehran. This conflict has generated, among other impacts, a global energy crisis, global consequences for the cost of living, a more unstable Middle East, and a relevant political dilemma for President Donald Trump, who is competing for control of the US Congress in the November midterm elections.
'Operation Epic Fury' began on February 28, when the United States and Israel launched a large-scale air offensive against military, nuclear facilities, and Iranian leaders, resulting in casualties, including the death of Supreme Leader Ali Khamenei.
