Turkey revokes operating license of Iran's Mellat Bank amid US economic measures against Tehran

Turkey's financial regulator, BDDK, has suspended the operating license of Mellat Bank's branch in Istanbul, according to an official notice. This comes as the United States intensifies economic pressure on Iran. The decision to revoke Bank Mellat's license was made under a clause in Turkey's banking law, which permits license revocation if a bank's operations pose a risk to depositors' rights or the stability of the financial system. The exact connection between the US measures and the license suspension remains unspecified.

Earlier this month, the US Treasury Department sanctioned a small Turkish investment bank and two of its subsidiaries. US Ambassador to Turkey, Tom Barrack, defended the decision, stating it targets a specific entity, not Iran or the Turkish banking system as a whole. He emphasized that the health of Turkey's financial system is not at risk; rather, the actions of one institution are under scrutiny.

In response to US sanctions, Turkey and Oman have decided to halt flights by Iranian airline Mahan Air. The airline, sanctioned by the US for alleged ties to the Islamic Revolutionary Guard Corps (IRGC), announced it would suspend flights to Turkey and Oman until further notice. The cancellation of these flights further isolates Tehran and reduces its limited air connectivity, which was crucial for Iranians' access to Europe and other destinations.

Although public announcements from Ankara or Muscat regarding the suspension have not been made, the move contributes to mounting economic isolation of Iran.

The US has been applying economic pressure on Iran since the beginning of the ongoing war. On September 8, the US Treasury sanctioned 27 Iranian airlines and several foreign companies involved in supporting Iran's aviation sector. The administration's strategy, dubbed Operation Economic Outcast, aims to deepen Iran's economic strain.