US warns foreign financial institutions not to do business with Iran

The US Treasury has issued a warning to foreign financial institutions, stating that any business dealings with Iran or its banking sector could result in US sanctions. If these institutions continue to transact with sanctioned Iranian financial institutions, Washington could target them at any time without prior notice. The Treasury advised these institutions to immediately cease such activities and relationships.

The United States initiated its war against Iran in late February, targeting the country's leadership and demanding an end to nuclear-related activities. This conflict has caused unrest in the Middle East, with Tehran retaliating against US allies in the Gulf region, leading to soaring global energy and fertiliser prices due to the virtual closure of a crucial trading route.

Since late August, the US has intensified its efforts to economically isolate Tehran, warning allies that secondary sanctions would be imposed if they continued to engage in transactions with the country's government. The Treasury has also announced additional sanctions targeting Iran's financial, cryptocurrency, rail, automotive, and manufacturing sectors. Two banks, one located in the United Arab Emirates and another in Turkey, have been singled out for aiding Tehran's authorities.

According to the Treasury, Iran's government employs "shadow banking" channels to bypass US sanctions, and foreign financial institutions should strive to identify and avoid any such activities.