US Targets Egyptian Bank’s UAE Branches under New Push for Iran’s Economic Isolation

The Trump administration is taking measures to limit the operations of Egypt's Banque Misr in the United Arab Emirates, accusing the bank of providing financial support to Iran's leadership. This comes as the U.S. enters the sixth month of its war against Iran. The proposed rule, announced by Treasury Secretary Scott Bessent, would sever the UAE branches of Banque Misr from access to the U.S. financial system.

While the administration has not imposed sanctions on the bank, it signals a reluctance to penalize major trading partners such as China and India for their business with Iran. The move is part of a broader campaign aimed at pushing nations that still engage with Iran to sever their financial ties or face retaliation from the U.S. The rule will undergo a 30-day public comment period before implementation.

Bessent emphasized that Iran's supporters cannot continue to benefit from the U.S. dollar and the global financial system. Egypt's foreign ministry and central bank have been informed of the new rule and are engaging with U.S. officials. The CBE stated that the measure is limited to Banque Misr's UAE branches and dollar transfers, and does not affect other Egyptian banks or Banque Misr's operations in Egypt or overseas.

Additionally, the Treasury Department imposed new sanctions on the Dubai branch manager of Iran's Bank Melli and a Hong Kong-based firm accused of facilitating Iranian fund laundering. Treasury Secretary Bessent will represent the U.S. at upcoming G20 finance minister meetings to encourage participation in the economic isolation of Iran.