The United States Treasury announced plans Friday to cut a major Egyptian bank’s branches in the United Arab Emirates out of the dollar system as part of “Operation Economic Outcast,” the new sanctions campaign against Iran.
Banque Misr, Egypt’s second-largest bank, has 30 days before the new rule revoking correspondence rights with American financial institutions for its UAE operation comes into effect.
“Treasury promised to sever every economic lifeline Tehran has left and finally end the threat of the Iranian regime,” said Treasury Secretary Scott Bessent in a department press release. “We also warned that Iran’s enablers cannot continue to enjoy access to the U.S. dollar and the global financial system. 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.”
“Treasury estimates that between January 2024 and June 2026, Banque Misr UAE processed approximately $1.8 billion for 103 companies that are potentially part of Iranian shadow banking networks,” the press release alleged.
The press release also noted sanctions against the manager of Bank Melli’s UAE branch and a Hong Kong–based trading house for facilitating transactions for sanctioned Iranian entities.
In an interview with Iran’s President Masoud Pezeshkian conceded the economic damage from American sanctions. In an interview with the Iranian Student News Agency, he commented, “For those who say sanctions have no effect at all, I really don’t know what to say to them. I mean, common sense is a good thing. That’s all I want to say. Common sense is really a good thing.”
Brent crude closed Friday at $89.37 per barrel. AAA reported a national average of $4.08 per gallon of regular gasoline.
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