US threatens sanctions against foreign banks doing business with Iran
The United States has warned foreign financial institutions that they risk sanctions if they continue conducting business with Iran or entities within the country’s banking sector.
The US Treasury issued the warning on Monday in an alert, urging foreign banks to immediately end transactions and business relationships involving Iranian financial institutions already under US sanctions.
“Foreign financial institutions continuing to transact with sanctioned Iranian financial institutions could be targeted at any time without advance notification and should take immediate action to terminate such activity and relationships,” the Treasury said.
The warning comes amid Washington’s ongoing military and economic confrontation with Tehran. The United States launched its war against Iran in late February, killing members of the country’s leadership and demanding an end to its nuclear-related activities.
Iran’s retaliation has expanded the conflict across the Middle East, with attacks targeting US allies in the Gulf. The fighting has also disrupted a major trade route, contributing to sharp increases in global energy and fertiliser prices.
Since late August, Washington has intensified efforts to isolate Iran economically, warning foreign partners that they could face secondary sanctions for continuing transactions with the Iranian government.
As part of the campaign, the Treasury has imposed a series of additional sanctions targeting Iran’s financial, cryptocurrency, rail, automotive and manufacturing sectors.
The US has also sanctioned two banks, one based in the United Arab Emirates and another in Turkey, over allegations that they assisted Iranian authorities.
In its latest warning, the Treasury said Tehran operates so-called “shadow banking” networks to bypass US sanctions and urged foreign financial institutions to identify and avoid involvement in such activities.