The Trump administration has opened another front in its campaign to squeeze Iran economically, with the U.S. Treasury Department moving to cut the United Arab Emirates branches of Egypt’s Banque Misr off from access to the American financial system over alleged links to Iranian shadow-banking networks. The development, which our source highlights as a significant escalation, means Tehran’s search for financial breathing space is becoming increasingly similar to a customer trying every entrance after the bank has announced that it is closing for the day. The Treasury proposal was announced on August 28 under its newly launched “Operation Economic Outcast.”
Treasury Draws Another Financial Red Line
The U.S. Treasury’s Financial Crimes Enforcement Network has proposed prohibiting U.S. financial institutions from maintaining correspondent accounts for Banque Misr UAE. Treasury says the UAE operations processed approximately $1.8 billion between January 2024 and June 2026 for 103 companies potentially connected to Iranian shadow-banking networks. Washington alleges that such networks help Iran move money, evade sanctions and maintain access to international finance.
For Tehran, the announcement is another reminder that the dollar has become a particularly unfriendly neighbour. Treasury Secretary Scott Bessent said the administration had warned Iran’s financial enablers that they could not continue enjoying access to the U.S. dollar and global financial system. In Washington’s telling, therefore, this is not simply about one bank branch in the UAE; it is about making the financial routes used by Iran increasingly expensive, complicated and uncomfortable.
Thirty Days to Comment Before the Financial Door Closes
The proposal is subject to a 30-day public comment period before the rule can take effect. Importantly, the measure applies specifically to Banque Misr UAE and does not extend to Banque Misr’s operations inside Egypt or its other overseas branches. Egypt’s central bank has acknowledged the measure and said it is limited to the bank’s UAE branches and dollar transfers.
The action comes alongside separate U.S. sanctions against the manager of Iran’s Bank Melli branch in Dubai and a Hong Kong-based company accused of helping launder Iranian funds. It also fits into a broader campaign announced by the Trump administration this week to increase pressure on countries and institutions that continue facilitating Iran’s international economic activity. In other words, Washington appears to be checking financial doors one by one — and Iran may soon discover that the welcome mat has been replaced with a sanctions notice.
The coming weeks will show whether the proposed restriction becomes permanent and how Egypt, the UAE and other financial institutions respond to Washington’s expanding pressure campaign. For now, Iran’s financial access remains under another serious squeeze, while the Trump administration signals that its economic pressure campaign is far from finished. Readers should watch OGM News for further updates as the 30-day process unfolds and the next financial door comes into view.
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