US cuts UAE branches of Egypt’s Banque Misr from financial system to pressure Iran

Photo: Tom Fisk / Pexels The U.S. Treasury Department is taking action to cut off the UAE branches of Banque Misr, Egypt’s second-largest bank, from the U.S. financial system. This move aims to exert pressure on Iran to end ongoing conflicts in the Middle East. The decision targets the bank’s relationship with Iran’s purported shadow banking network and is part of a broader effort to escalate financial pressure on Iran. This development does not impose broad sanctions on the Egyptian banking sector but rather focuses on entities linked to sanctions evasion. This action aligns with the U.S. strategy of tightening financial screws on Iran by targeting intermediaries, suggesting potential increased instability within Iranian leadership. The market for Masoud Pezeshkian’s potential departure as President of Iran has seen a slight increase in YES pricing, consistent with interpretations that heightened international pressure could affect Iran’s internal politics. Meanwhile, the likelihood of a U.S.-Iran nuclear deal remains low, with pricing at 0.2% for an agreement by the end of August. Key Takeaways The Treasury’s move appears consistent with efforts to pressure Iran by targeting inte...