Washington brings its Iran pressure to Banque Misr's Emirati branches
The US Treasury proposed barring American banks from handling transactions with Banque Misr's United Arab Emirates branches. The move gives concrete form to Washington's stated shift from military action toward economic pressure after six months of war with Iran. The proposal has a 30-day comment period; a Bank Melli Dubai manager and a Hong Kong company were also sanctioned.
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US Treasury targets Banque Misr transactions
The US Treasury proposed a rule barring American banks from handling transactions with the United Arab Emirates branches of Egypt's Banque Misr. Treasury said that between January 2024 and June 2026, 103 potential front companies moved 1.8 billion dollars through accounts at those branches. It described the operations as a significant conduit for Iranian shadow banking. The proposal reported by POLITICO targets the Emirati branches rather than the whole banking group for exclusion from the US financial system.[1]
Six months into the war, emphasis shifts to economic pressure
The Associated Press reports that the US-Israel war on Iran has passed six months and that the Trump administration said this week it would shift its weight from military action to economic pressure. Trump had said the war would last weeks; with fighting continuing, Washington is foregrounding threats to punish countries, institutions and companies that keep doing business with Tehran. The Associated Press says the administration is weighing diminished munitions stocks and concerns that the prolonged war is eroding US readiness elsewhere.[2]
Section 311 starts a 30-day process
Treasury Secretary Scott Bessent is using Section 311 of the USA PATRIOT Act, which allows a foreign bank to be designated a primary money-laundering concern. The proposed rule has a 30-day comment period before it takes effect. The US Treasury also sanctioned the general manager of the Dubai branch of Bank Melli, Iran's largest lender, and a Hong Kong front company. POLITICO reports that whether Bessent will apply the same pressure to Chinese banks remains unanswered.[1]
