US-Iran war: Why Larak island, Jordan and Egypt's Banque Misr are targets in latest flare-up

On Sunday, the United States military launched airstrikes against two Iranian missile launchers on Larak Island, a strategically vital location situated in the Strait of Hormuz. US Central Command (CENTCOM) claimed the strikes were conducted to counter an imminent threat posed by Iranian forces laying mines in the critical shipping lane. Iran, however, reported significant casualties and injuries among its Revolutionary Guard and civilians in response to the US action.

In retaliation for the US strikes on Larak Island, Iran launched ballistic missiles targeting US military bases in Jordan—King Hussein and Al Azraq. The Islamic Revolutionary Guard Corps (IRGC) claimed to have successfully hit both bases in the so-called "Punishment of the Aggressor" operation. Jordanian authorities intercepted eight of the missiles launched by Iran shortly after the attack.

The following day, Iran also targeted the UAE, striking Al Minhad Base with dozens of attack drones, according to state television reports.

As a response, the US Treasury Department announced plans to impose weekly new sanctions on various entities, including banks, to intensify economic pressure on Iran. The sanctions were particularly focused on entities allegedly facilitating financial activities linked to Iran. Meanwhile, Banque Misr, an Egyptian bank, faced secondary sanctions from the US Treasury, affecting its branches in the United Arab Emirates.

These sanctions aim to cut off Iran's access to the US financial system, targeting the bank for its alleged involvement in financial activities related to Iran.