US-Iran Economic War: Banque Misr UAE Branches Targeted

The United States has proposed restricting six UAE branches of Egypt’s Banque Misr from accessing the US financial system, accusing them of processing transactions linked to Iranian shadow-banking networks as Washington steps up economic pressure on Tehran.

The Treasury’s Financial Crimes Enforcement Network (FinCEN) said the branches processed about $1.8 billion in transactions between January 2024 and June 2026 for 103 companies potentially linked to Iran’s shadow-banking networks. The proposed measure would bar the branches from correspondent banking access to US financial institutions, restricting their ability to conduct dollar transactions.

According to Iran International, the move marks the first major action under Washington’s new “Economic D-Day” campaign against Tehran and institutions that facilitate its trade. Treasury described the Banque Misr UAE branches as a “critical node” in Iran’s access to US dollars.

“Treasury promised to sever every economic lifeline Tehran has left and finally end the threat of the Iranian regime,” Treasury Secretary Scott Bessent said.

“We also warned that Iran’s enablers cannot continue to enjoy access to the US dollar and the global financial system,” he added. “Banque Misr UAE decided to find out the hard way.”

Proposed Restriction Limited To UAE Branches

The move is narrower than Bessent’s earlier preview of a “major announcement” involving secondary sanctions against an international bank.

Iran International reported that the proposed restriction applies only to Banque Misr’s six UAE branches. It does not cover the bank’s Cairo headquarters or its branches in France, Germany, Saudi Arabia, Lebanon and Djibouti, which would remain able to conduct dollar transactions.

The proposal is also subject to a 30-day public comment period before it can take effect.

The Financial Times said the limited scope highlighted Washington’s reluctance so far to target major Chinese banks and other large financial institutions involved in financing Iranian trade, amid concerns about potential disruption to global markets and retaliation.

China remains particularly important to Tehran. Chinese purchases of Iranian oil account for about 45 per cent of the Iranian government’s budget, according to the US-China Economic and Security Review Commission, cited by the Financial Times.

Treasury Targets Bank Melli Official

The Treasury separately sanctioned Reza Mohammad Taeedi, general manager of Iran’s Bank Melli branch in Dubai. It also sanctioned a Hong Kong-based company that it accused of helping launder money for a sanctioned Iranian exchange house.

Banque Misr UAE did not immediately respond to a Reuters request for comment on Friday, while Reuters said it was unable to reach Taeedi.

According to Iran International, the measures come as Washington seeks to intensify economic pressure on Iran six months into its war with the country while avoiding measures that could cause wider financial disruption.

Iran has urged other countries not to participate in the new US sanctions campaign.