US threatens sanctions against foreign banks doing business with Iran

The United States has issued a stern warning to foreign financial institutions, cautioning them against engaging in business dealings with Iran or any entities within the country's banking system. The Treasury Department released this advisory on Monday, urging such institutions to cease all transactions and cut off all ties with Iranian financial entities already sanctioned by the United States.

The Treasury Department emphasized that any foreign financial institution persisting in dealings with sanctioned Iranian financial institutions could face targeted sanctions at any time without prior notice. This stern warning comes amidst the ongoing military and economic tensions between the United States and Iran, which escalated following the US military's strike on Iranian leadership in late February.

Iran's subsequent retaliation has escalated the conflict across the Middle East, affecting US allies in the Gulf. The conflict has also disrupted a major trade route, leading to a surge in global energy and fertilizer prices. Since late August, Washington has stepped up its efforts to economically isolate Iran, warning its foreign partners that they risk secondary sanctions for continuing transactions with the Iranian government.

As part of this campaign, the Treasury has imposed additional sanctions on Iran's financial, cryptocurrency, rail, automotive, and manufacturing sectors. The US has additionally sanctioned two banks, one located in the United Arab Emirates and another in Turkey, for alleged assistance to Iranian authorities. The latest warning from the Treasury highlighted Tehran's use of "shadow banking" networks to circumvent US sanctions and urged foreign financial institutions to identify and stay away from these illicit activities.