U.S. sanctions UAE branch of Egyptian bank over Iran financial ties

The Treasury Department on Friday moved to sanction the United Arab Emirates branch of an Egyptian bank over its financial ties to Iran.

Treasury intends to revoke the access of Banque Misr UAE to U.S. financial institutions, the department said in a statement.

Banque Misr UAE processed about $1.8 billion over the past two years for some 100 companies that are potentially part of Iran's shadow banking network, according to Treasury.

The action comes four days after Treasury Secretary Scott Bessent launched "Operation Economic Outcast," a sanctions campaign that aims to sever all of Iran's economic ties around the world.

Bessent said Monday that Treasury would make "a major announcement of a financial institution being sanctioned by the end of this week."

President Donald Trump has described the sanctions campaign against Iran as the economic equivalent of D-Day, the Western allies' massive invasion of Nazi-occupied Europe during World War II. But Treasury's actions against the Islamic Republic have been modest in their scope so far.

Treasury on Friday also blacklisted Iranian national Reza Mohammad Taeedi, general manager of the Dubai branch of Iran's Bank Melli. And it sanctioned a Hong Kong entity, Kameng Trading Limited, for allegedly acting as a front company that launders money for an Iranian exchange house.

Iran's crude oil exports are a crucial source of its revenue, and China is its main customer. The U.S. Navy blockade of the Strait of Hormuz has slashed those exports, but there are tankers in Asia loaded with millions of barrels of Iranian oil waiting to discharge in China, according to Kpler.

When asked whether the U.S. would sanction Chinese institutions, Bessent said Monday that "no one is above the reach of U.S. sanctions."

"If they facilitate transactions and are part of the ecosystem that turns Iranian oil into money, into repression, they will be targeted," Bessent said.