US Targets Banque Misr UAE, Iran Sanctions Expand

The U.S. Treasury is moving to sever the UAE branches of Banque Misr from the U.S. financial system as part of Operation Economic Outcast, aiming to curb Iran’s access to international finance. The proposed rule would revoke Banque Misr UAE’s correspondent banking access and require U.S. banks to avoid processing related accounts, affecting about $1.8 billion in flows linked to Iranian-related entities over the past two years. The action targets only Banque Misr’s UAE operations, not its other branches, and comes alongside sanctions on Bank Melli Dubai’s regional manager and a Hong Kong-based company accused of laundering for Iran. Treasury Secretary Scott Bessent characterized the move as the first step in a broader effort to eliminate Iran’s economic lifelines, with a 30-day public comment period before it takes effect. Analysts note the measure is cautious in scope, reflecting concerns about potentially destabilizing the global economy while signaling Washington’s willingness to escalate pressure on Iran. The announcements come as Washington intensifies its rhetoric around financial sanctions and Iran’s shadow banking network, particularly in Dubai.