The United States has proposed a new measure targeting the Banque Misr UAE branches as Washington steps up pressure on financial institutions linked to Iran.
The US Treasury Department announced the proposed rule on Friday. If it takes effect, the UAE branches of Banque Misr, Egypt’s second-largest bank, would lose access to the US financial system.
The move comes as the Trump administration increases its efforts to isolate Iran from the international financial system.
US Targets Banque Misr UAE Branches
Under the proposed rule, the Banque Misr UAE branches would be cut off from access to the US financial system.
US officials accuse the bank of helping provide financial support to Iran’s leadership. However, the United States has not imposed direct sanctions on Banque Misr itself under this action.
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The Treasury Department said the proposal will now go through a 30-day public comment period before it can take effect.
Why the US Took the Step
The action is part of a wider US campaign against countries and financial institutions that continue to do business with Iran.
Treasury Secretary Scott Bessent has warned that countries maintaining financial ties with Iran could face pressure from Washington.
The US administration says institutions that continue to support Iran should not expect continued access to the US dollar and the wider global financial system.
No Direct Sanctions on Banque Misr
The decision to target the Banque Misr UAE branches without directly sanctioning the Egyptian bank is notable.
The move suggests that Washington is trying to increase pressure on financial institutions while avoiding broader action against major trading partners that continue to have economic relations with Iran.
Bessent has said countries should have an opportunity to reduce their ties with Iran before stronger measures are taken.
Other US Actions Against Iran-Linked Financial Activity
The Treasury Department also announced new sanctions on Friday.
One target was the manager of the Dubai branch of Iran’s Bank Melli. The US also sanctioned a Hong Kong-based company that it accused of helping launder funds for Iran.
These actions are part of Washington’s broader effort to restrict Iran’s access to international financial networks.
Bessent to Attend G20 Finance Ministers Meeting
Scott Bessent is expected to represent the United States at the upcoming Group of 20 finance ministers meetings.
He is expected to meet with finance officials from major and developing economies. The US wants other countries to join its efforts to increase economic pressure on Iran.
The proposed action involving the Banque Misr UAE branches is therefore part of a wider US campaign focused on Iran’s financial connections.
What Happens Next?
The proposed rule is not yet final. The Treasury Department will allow a 30-day public comment period before deciding on the next step.
Until the process is completed, the measure remains a proposal.
The action against the Banque Misr UAE branches marks another step in the US effort to limit financial links with Iran and increase economic pressure on Tehran.
