US to set limits on Egyptian bank in effort to pressure Iran: official

Vessels are seen in the Strait of Hormuz, off the port city of Bandar Abbas in southern Iran on August 10, 2026. (AFP)

• Treasury plans to cut UAE branches of Egypt’s Banque Misr off from US financial system, official says
• The measure will reportedly take effect after a 30-day public comment period

WASHINGTON: The Treasury Department is due to cut off a major Egyptian bank’s operations in the United Arab Emirates from the US financial system, an official confirmed Friday, as Washington pushes to choke Iran off economically.
The move impacts UAE branches of Egypt’s second biggest bank, Banque Misr, blocking their banking access to US financial institutions.
US Treasury Secretary Scott Bessent laid out plans this week for Iran’s “economic asphyxiation,” six months into a war on Tehran that is now locked in a stalemate.
The Treasury Department’s action will only take effect after a month-long public comment period.
In a statement first reported by the Financial Times, Bessent said Washington has “warned that Iran’s enablers cannot continue to enjoy access to the US dollar and the global financial system.”
US-Israel strikes targeting Iran from late February sparked Tehran’s retaliation in blocking most traffic through the Strait of Hormuz, while plunging the Middle East into war.
The waterway is a crucial route for global energy transit, sending global oil prices rocketing.
Bessent vowed that the United States was declaring an “economic D-Day” on Iran, warning of harsh consequences for countries that do not join the campaign.
The US Treasury chief added this week that President Donald Trump was also contacting world leaders with a request to halt interactions with Tehran.
Bessent himself is due to make direct appeals to G20 counterparts in bilateral meetings next week, as finance ministers gather in Asheville, North Carolina, for talks.
But Friday’s effort underscores the Trump administration’s challenges in taking aim at larger targets.
Beijing, for example, is an important buyer of Iranian oil. Before the war, Tehran exported millions of barrels of oil a day, mostly to China.
Moves to hit institutions in China, however, could impact the world economy and would strain ties between Washington and Beijing ahead of an expected visit by Chinese President Xi Jinping to the US capital in September.
The Treasury Department said Friday it is also imposing sanctions on the manager of the Dubai branch of Iran’s Bank Melli, alongside “a Hong Kong-based front company that has helped launder funds for a sanctioned Iranian exchange house.”