US to sanction new bank as part of Iran economic isolation push

US Treasury Secretary Scott Besant revealed that the Trump administration plans to impose sanctions on a new bank this week, intensifying its campaign to economically isolate Iran. During an interview with the Associated Press, Besant described the move as "financial violence" if required, asserting that the targeted entities are fully aware of the impending measures and that such conduct must cease.

His remarks occurred prior to the G20 summit in Asheville, North Carolina, where he will engage in private discussions with leaders from leading and emerging economies to promote collective action against Iran. Besant emphasized his priorities, including fostering economic expansion amidst questions surrounding the bond buyback program and his strategy for controlling the US's $40 trillion debt.

The specific name of the bank facing sanctions this week remains undisclosed. This action aligns with the Trump administration's transition from military confrontations to an "economic ostracism" approach against Iran, an ongoing conflict now in its sixth month. Simultaneously, the US and Iran have escalated tensions, with American forces conducting airstrikes on Iranian rocket launchers in the Strait of Hormuz – the first such US military operation in a month.

Iran has threatened retaliation in response to what it termed a "bloody attack." The US government has largely avoided targeting Iran's trading partners with fresh sanctions, leaving open the question of how President Trump will address China, Iran's principal trading partner and primary oil purchaser. Besant affirmed that he will deliberate on various options with his Chinese counterparts at the G20, encompassing potential sanctions on Beijing for persisting in purchasing Iranian oil, while denying any reluctance within the administration to confront China.

On Friday, the US Treasury Department unveiled a regulatory proposal that could potentially bar the UAE branch of Banque Misr from engaging in transactions within the US financial framework, marking the inaugural concrete step in the administration's "economic ostracism" offensive. The administration's reluctance to sanction the Egyptian bank underscores its reluctance to penalize Iran's crucial trading associates, such as China and India.