WASHINGTON/TEHRAN – The US Treasury Department's Financial Crimes Enforcement Network on Friday proposed a rule that would revoke Banque Misr UAE's correspondent banking access to US financial institutions as part of a new sanctions campaign targeting Iran.
Reacting to the new sanctions, Iranian Foreign Minister Seyed Abbas Araghchi condemned the US campaign as "economic terrorism" and called on the United Nations to denounce the US actions.
Referring to the campaign dubbed "Operation Economic Outcast”, US Treasury Secretary Scott Bessent said: “Treasury promised to sever every economic lifeline Tehran has left and finally end the threat of the Iranian regime.”
"We also warned that Iran's enablers cannot continue to enjoy access to the US dollar and the global financial system," Bessent said.
"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."
According to the department, Banque Misr UAE is "a critical node" for Iran's access to US dollars. Between January 2024 and June 2026, the bank processed approximately $1.8 billion in transactions for 103 companies that the department said may be part of Iranian shadow banking networks.
The proposed action against the bank would cut off what the department described as a key financial lifeline and sanctions evasion vehicle for Iran.
Separately, the Treasury Department's Office of Foreign Assets Control on Friday also sanctioned Iranian national Reza Mohammad Taeedi, general manager of Bank Melli's Dubai branch, claiming that the bank had facilitated billions of dollars in transactions through accounts controlled by the Islamic Revolutionary Guard Corps' Quds Force.
Bessent announced "Operation Economic Outcast" on Monday, saying the campaign was aimed at severing Iran's remaining financial lifelines. He warned that any entity facilitating money laundering or sanctions evasion on behalf of Iran would be cut off from the US financial system.
Earlier this month, US President Donald Trump said the United States would launch "the most crushing economic operation ever" against Iran, describing it as an "economic warfare and isolation on an unprecedented scale."
Iran urges nations not to join US’ ‘illegal’ sanctions
The Iranian Foreign Ministry on Friday urged countries not to join Washington's unilateral sanctions against Iran.
In a statement, the ministry condemned US sanction policies against Iran, saying they were "in violation of the UN Charter, international humanitarian law and human rights."
The ministry accused the US of using the dollar as a tool to intimidate other countries into following "interventionist" policies against Tehran.
It called on all countries to refrain from implementing the sanctions or recognizing the situations or impacts resulting from "these illegal actions."
‘Diplomacy still possible’
Iranian Foreign Minister Araghchi also said on Friday that diplomacy with the US can get back on track if Washington realizes that pressure against Tehran does not work.
He made the remarks in a post on X, referring to his meeting on Thursday with Qatari Prime Minister and Minister of Foreign Affairs Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani in Tehran, during which the two sides held "creative discussions."
"Putting diplomacy back on track isn't impossible. It hinges on US understanding of one simple fact: pressure doesn't work,” Araghchi said.
He called on the US to build trust, speak respectfully, acknowledge Iran's rights, and uphold its commitments toward the country.
On June 18, the US and Iran signed a memorandum of understanding (MoU) on ending the war in the region. Under the MoU, the two sides were scheduled to hold negotiations within 60 days, ending on Aug 17, to reach a final agreement. However, the fate of the talks remains unclear following an escalation between the two countries last month.
