The United States will impose sanctions on another bank this week as part of an ongoing effort to economically isolate Iran, U.S. Treasury Secretary Scott Bessent announced Sunday. Bessent stated the action follows recent penalties on the United Arab Emirates branches of Egypt’s Banque Misr for alleged financial links to Iran, signaling a broader campaign to restrict Tehran’s access to the global financial system.
Bessent, speaking ahead of Group of 20 (G20) meetings in Asheville, North Carolina, emphasized that the U.S. intends to impose weekly sanctions targeting institutions facilitating transactions with Iran. “You’re going to see a lot more of these every week,” he said. “We’re starting with the banks, and we’re telling the banks it’s not okay to have Iranian money and to aid the regime.” While Bessent did not name the next bank to be sanctioned, he warned that further measures could include cutting institutions off entirely from the dollar-based financial system.
The Treasury Secretary framed the sanctions as a direct response to Iran’s regional activities, stating, “This is going to be financial violence if we have to. We are showing people that we know who you are, you know who you are, and this has got to stop.” Bessent added that all options are on the table regarding sanctions on China, the largest buyer of Iranian oil, though he noted Beijing had expressed support for reopening the Strait of Hormuz and preventing Tehran from developing nuclear weapons.
Escalation in Strait of Hormuz amid sanctions push
The announcement comes as tensions between the U.S. and Iran escalated Sunday, with U.S. forces conducting strikes on Iranian rocket launchers in the Strait of Hormuz—their first military action in a month. Iran condemned the strikes as a “deadly attack” and vowed retaliation. The administration has increasingly relied on economic pressure rather than military strikes since the conflict reached its six-month mark, with Bessent describing the strategy as an “economic D-Day” against Iran, which has faced decades of sanctions.
Bessent dismissed claims that the administration was reluctant to confront China over its trade ties with Iran, calling such assertions “a completely false narrative that the media picked up on.” He confirmed plans to discuss the issue with Chinese counterparts during the G20 meetings, though no specific timeline for potential sanctions against Beijing was provided.
U.S. urges G20 cooperation to sever Iran ties
The Treasury Secretary’s remarks were delivered ahead of the G20 meetings scheduled for August 31 and September 1, where he aims to rally international support for isolating Iran economically. Bessent emphasized that the U.S. would seek to persuade member nations to cut financial ties with Tehran or face potential retaliation. “We are telling the banks it’s not okay to have Iranian money and to aid the regime,” he reiterated.
The campaign reflects a shift in U.S. strategy from military engagement to financial coercion, though the administration has yet to impose new sanctions directly targeting Iran’s trading partners beyond warnings. The latest sanctions follow a pattern of secondary sanctions, which penalize third-party institutions for facilitating transactions with sanctioned entities rather than targeting Iran directly.