Banque Misr UAE branches face US cutoff, official says

Banque Misr's branches in the United Arab Emirates face being cut off from the US financial system as Washington increases economic pressure on Iran, a US official confirmed Friday.

The Treasury Department move would block the UAE operations of Banque Misr, Egypt's second-biggest bank, from banking access to US financial institutions. The action will take effect only after a month-long public comment period.

US Treasury Secretary Scott Bessent said in a statement first reported by the Financial Times that Washington had warned “Iran's enablers” they could not continue to enjoy access to the US 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,” Bessent said.

Bessent this week laid out plans for what he called Iran's “economic asphyxiation,” six months into a war involving the United States, Israel and Iran. He also said the United States was declaring an “economic D-Day” on Iran and warned of consequences for countries that do not join the campaign.

The Treasury Department said Friday it is also imposing sanctions on the manager of the Dubai branch of Iran's Bank Melli and on a Hong Kong-based front company that it says helped launder funds for a sanctioned Iranian exchange house.

Bessent is due to appeal directly to G20 counterparts in bilateral meetings next week, as finance ministers gather in Asheville, North Carolina.

The wider pressure campaign faces difficulties because Beijing is an important buyer of Iranian oil. Moves against institutions in China could affect the world economy and strain relations between Washington and Beijing before an expected visit by Chinese President Xi Jinping to the US capital in September.