Turkey revokes operating licence of Iran's Mellat Bank amid US economic pressure on Tehran

Turkey's banking regulator has suspended the operating licence of Mellat Bank, an Iranian lender operating a branch in Istanbul, amid US economic pressure on Tehran. The decision, published in the Official Gazette, was not tied to specific operational issues, but rather to a clause in Turkey's banking law that allows revoking a lender's licence if its continued operation poses a risk to depositors' rights or financial system stability.

The US Treasury Department has recently imposed sanctions on a Turkish investment bank and two subsidiaries, emphasizing that the measures are targeted at one entity's conduct, not the nation or the banking system as a whole. US Ambassador to Turkey, Tom Barrack, stated that the health of Turkey's financial system remains unaffected.

Turkey and Oman have decided to halt flights by Iranian airline Mahan Air, which is currently under US sanctions for alleged ties to the Islamic Revolutionary Guard Corps. The suspension of Mahan Air's flights to Turkey and Oman, effective from September 21, further isolates Tehran and reduces its limited air connectivity.

The US has been increasing economic pressure on Iran, following the escalation of the war, pushing energy prices higher globally. In September, the US imposed sanctions on 27 Iranian airlines and foreign companies, warning that companies facilitating Iranian aviation activities could face consequences. This campaign aims to squeeze Iran's economy as part of the US strategy to combat the war's impact.