US warns foreign financial institutions not to do business with Iran

The United States has issued a warning to foreign financial institutions, urging them not to engage in any business dealings with Iran or its banking sector. Such institutions risk being sanctioned by Washington if they continue to conduct transactions with Iranian financial entities. The US Treasury has published an alert, emphasizing that these foreign entities must terminate all such activities and relationships immediately.

The conflict between the U.S. and Iran intensified in late February when the U.S. launched an aggressive war against Iran, targeting its leadership and demanding an end to all nuclear-related activities. This war has caused widespread unrest in the Middle East, with Iran retaliating against Washington's Gulf allies, leading to a surge in global energy and fertilizer prices due to the closure of a crucial trade route.

Since August, the U.S. has intensified its efforts to economically isolate Tehran, warning allies that secondary sanctions may be imposed if they continue to engage in transactions with the Iranian government. As part of this intensified campaign, the US Treasury has also imposed new sanctions on Iran's financial, cryptocurrency, rail, automotive, and manufacturing sectors.

Additionally, the Treasury has taken action against two banks - one located in the United Arab Emirates and another in Turkey - for their alleged role in aiding Tehran's authorities. In a recent statement, the Treasury revealed that Iran's government has established "shadow banking" channels to bypass U.S. sanctions, and foreign financial institutions are advised to identify and avoid any such activities.