Iran Economic Isolation Push Targets Egyptian Bank’s UAE Arm

The Trump administration’s Iran economic isolation campaign widened Friday, as the Treasury Department moved to cut off an Egyptian bank’s UAE branches for allegedly serving as a financial lifeline to Tehran.

A new rule targets Banque Misr’s UAE arm

Under a rule proposed Friday, the Emirati branches of Banque Misr, Egypt’s second-largest bank, would lose access to the U.S. financial system. The move follows Treasury Secretary Scott Bessent’s announcement this week of a campaign pressing countries that still do business with the heavily sanctioned Islamic Republic to sever financial ties or face U.S. retaliation.

By stopping short of sanctioning the Egyptian bank outright, the move signals the administration’s reluctance to penalize major trading partners such as China and India that also do business with Iran. Bessent told reporters Monday he wants to give countries a chance to shift away from Iran before it’s too late, in a bid to avoid destabilizing the global financial system. The rule faces a 30-day public comment period before taking effect.

“The Trump administration warned that Iran’s enablers cannot continue to enjoy access to the U.S. dollar and the global financial system,” Bessent said in a statement. “Banque Misr UAE decided to find out the hard way, and today, we are taking the first step in holding it accountable for its continued, egregious support of the Iranian regime.”

Egypt says the measure is narrowly limited

Egypt’s foreign ministry and central bank confirmed they are in contact with U.S. officials over the new rule. “The CBE affirms that this measure is limited to the bank’s branches in the UAE and only to its dollar transfers,” the Central Bank of Egypt said in a statement, adding that the rule does not affect any other Egyptian bank or Banque Misr’s operations inside Egypt or at other overseas branches. “The Central Bank of Egypt affirms the strength and resilience of all banks operating in Egypt,” it said.

More sanctions target Bank Melli and a Hong Kong firm

Separately Friday, the Treasury’s Office of Foreign Assets Control posted new sanctions against the manager of the Dubai branch of Iran’s Bank Melli and a Hong Kong-based firm accused of helping launder funds for Iran.

Bessent is set to represent the U.S. at next week’s Group of 20 finance ministers meetings, where he plans to meet individually with counterparts from major and developing economies to press for broader participation in Iran’s economic isolation.