US Treasury launches weekly sanctions blitz on banks facilitating Iranian finance

The US Treasury Department is rolling out a sweeping new sanctions campaign against Iran, one that promises to hit foreign banks with secondary sanctions on a weekly cadence. The initiative, dubbed “Operation Economic Outcast,” targets financial institutions and individuals across five sectors: digital assets, technology, gold, aviation, and shipping. Treasury Secretary Scott Bessent announced the operation on August 24, sanctioning nearly 60 entities and individuals in the opening salvo. The message to foreign banks is simple: cut ties with Iranian-linked entities on a defined timeline, or lose access to the US dollar system. A $1.8 billion case study Four days after the initial announcement, FinCEN moved to make an example. The agency proposed a rule to revoke correspondent banking access for Banque Misr’s UAE branch, effectively severing its connection to US financial institutions. The reason: Treasury estimates the branch processed roughly $1.8 billion for 103 Iranian-linked companies between January 2024 and June 2026. The Banque Misr action signals that Washington isn’t just going after Iranian entities directly. It’s targeting the intermediaries, the banks that serve as fina...