US cuts off major Egyptian bank from global financial system

The United States has severed ties with a major Egyptian bank, Banque Misr, by cutting off its branches in the United Arab Emirates from the global financial system. This decision is part of the Trump administration's "Operation Economic Outcast" against Iran, aimed at limiting the country's access to U.S. dollars and asphyxiating Iran's enablers.

Banque Misr UAE will no longer be able to conduct business in U.S. dollars starting September 28th, under a new rule proposed by the Financial Crimes Enforcement Network (FinCEN). The Treasury Department assesses that Banque Misr UAE is a critical node for Iran's access to U.S. dollars. The move is part of a broader effort to squeeze Iran under the "Operation Economic Outcast."

The U.S. also sanctioned Dubai's branch of Bank Melli, a major commercial bank in Iran, and its manager, Reza Mohammad Taeedi. Additionally, the U.S. sanctioned Kameng Trading Limited, a Hong Kong-based company that has been used by Iranian exchange houses for money laundering. The Treasury Department's Financial Crimes Enforcement Network (FinCEN) is open for public comment on the rule for 30 days.

When asked about the potential impact on U.S.-China relations, Treasury Secretary Scott Bessent stated that the best way to engage with countries is through quiet diplomacy, and the administration is setting clear expectations for all countries. The sanctions come amid the ongoing standoff over the Strait of Hormuz.