US Cuts Banque Misr UAE Over Iran Sanctions

By Staff, Agencies

The United States has moved to cut Banque Misr’s UAE branch off from the US financial system over alleged breaches of Washington’s sanctions on Iran, the US Treasury Department said Friday.

The move comes days after Treasury Secretary Scott Bessent unveiled “Operation Economic Outcast,” a campaign seeking to isolate Iran and countries accused of supporting it by targeting revenue streams available to Tehran.

Meanwhile, Iranian Foreign Minister Abbas Araghchi wrote to UN leadership and member states on Wednesday, urging condemnation of US economic coercion.

However, experts said the measure falls short of the broader steps threatened under “Operation Economic Outcast,” as Washington has targeted a single branch rather than imposing sanctions on Banque Misr itself.

Under the latest action, the Treasury’s Financial Crimes Enforcement Network [FinCEN] proposed revoking Banque Misr UAE’s access to correspondent banking services offered by US financial institutions.

The Treasury alleged that the UAE-based branch had worked with front companies used by Iran’s Ministry of Defense and the Islamic Revolutionary Guards [IRG] to circumvent US sanctions.

Separately, Washington imposed sanctions on Reza Mohammad Taeedi, manager of Bank Melli’s Dubai branch, and Hong Kong-based Kameng Trading Limited, accusing them of assisting Iranian nationals already under US sanctions.

In response, Iranian President Masoud Pezeshkian said Tuesday that US economic pressure was aimed at subjugating Iran and forcing it to surrender, warning that measures targeting the livelihoods and security of the Iranian people would be treated as part of the war.

Pezeshkian, speaking during a meeting with Iraqi Supreme Judicial Council President Faiq Zidan, said Iran’s adversaries had recognized their inability to defeat the Iranian people militarily and had therefore turned to creating social and economic problems inside the country.

“Iran will not surrender,” Pezeshkian stressed, rejecting economic pressure as a means of forcing Tehran to submit.