US targets Egyptian bank’s UAE branches under new push for Iran’s economic isolation

U.S. officials are seeking to isolate an Egyptian bank's branches in the United Arab Emirates, alleging the financial institution provides crucial support to Iran's leadership, amid the ongoing six-month conflict between the United States and Iran. According to a proposed rule published by the Treasury Department, the UAE branches of Banque Misr, the second-largest bank in Egypt, would be disconnected from the U.S. financial system.

This decision comes after Treasury Secretary Scott Bessent announced a new campaign aimed at pressuring countries with ongoing financial dealings with Iran to sever their ties or face repercussions from the United States. While the administration did not penalize the Egyptian bank outright, this move reflects its cautious approach to restricting the financial activities of major trading partners such as China and India, which also conduct business with Iran.

Bessent emphasized during a news conference on Monday the administration's desire for countries to explore alternatives before it becomes too late, in an attempt to prevent disruptions to the global financial system. The rule will undergo a 30-day public comment period before becoming effective. Bessent stated that the U.S. stance is clear: entities supporting Iran cannot continue to benefit from access to the U.S. dollar and the global financial system.

The administration made its stance known in a statement, asserting that Banque Misr UAE had chosen to face the consequences of its continued support for the Iranian regime. On Friday, the Treasury Department also sanctioned the bank manager of the Dubai branch of Iran's Bank Melli and a Hong Kong-based firm accused of aiding Iran's illicit fund transfer efforts.