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

The Trump administration is taking action to restrict an Egyptian bank's activities in the United Arab Emirates (UAE), accusing the financial institution of acting as a lifeline for Iran's economy as the U.S. conflict with Iran enters its sixth month. A new proposal from the Treasury Department, announced on Friday, would cut off the UAE branches of Banque Misr, Egypt's second-largest bank, from the U.S. financial system.

This follows Treasury Secretary Scott Bessent's announcement earlier in the week of a new effort to pressure countries that continue to engage with Iran to sever their financial ties or face consequences from the United States. While the move does not impose sanctions on the Egyptian bank, it reflects the Republican administration's caution in penalizing significant trading partners, such as China and India, that do business with Iran.

Bessent expressed his desire for nations to have the chance to distance themselves from Iran before it becomes too late, aiming to prevent a disruption to the global financial system.