U.S. Treasury Secretary Scott Bessent announced on Sunday that the administration plans to impose weekly secondary sanctions on banks aiding Iran. Speaking ahead of G20 meetings in Asheville, North Carolina, Bessent warned financial institutions against handling Iranian funds as Washington ramps up its economic pressure campaign.
The U.S. Treasury Department is preparing to unveil a series of weekly secondary measures targeting international financial institutions that maintain ties with Tehran. Treasury Secretary Scott Bessent outlined the aggressive stance during an interview ahead of Group of 20 finance leaders meetings in Asheville, North Carolina, signaling a decisive shift toward sustained economic isolation.
Financial Violence and Weekly Sanctions
The administration’s newly minted economic campaign follows a six-month mark in the ongoing conflict, during which Washington has increasingly pivoted from military strikes to economic warfare. Bessent left no room for ambiguity regarding the Treasury’s methods or its intentions.
Bessent added in his interview with the Associated Press that this is going to be financial violence if we have to
, emphasizing that authorities intend to publicly expose complicit networks. We are showing people that we know who you are, you know who you are, and this has got to stop,
he stated.
The Banque Misr Precedent and the UAE Branches
The broader crackdown follows an official rulemaking proposal issued on Friday by the U.S. Department of the Treasury’s Financial Crimes Enforcement Network. That initial action targets the United Arab Emirates branches of Banque Misr, Egypt’s second-largest bank, by proposing to revoke its correspondent banking access to U.S. financial institutions.
According to Treasury estimates, Banque Misr UAE processed approximately $1.8bn between January 2024 and June 2026 for 103 companies linked to Iranian shadow banking networks. These customers allegedly included front companies utilized by the Iranian Ministry of Defence, the Islamic Revolutionary Guard Corps, and networks laundering money for Iranian Supreme Leader Mojtaba Khamenei.
By stopping short of sanctioning the parent bank in Egypt, the Republican administration appeared to signal a calculated reluctance to penalize major trading partners outright, though the restriction on UAE-based dollar transactions is set to take effect 30 days after a public comment period. The Central Bank of Egypt confirmed it was in contact with U.S. authorities, while Banque Misr stated it was reviewing the notice with the utmost seriousness.
Strait of Hormuz Clashes and China’s Role
The economic offensive coincides with fresh military flare-ups. U.S. forces struck Iranian rocket launchers on the Strait of Hormuz on Sunday, breaking a month-long lull in hostilities following vows of retaliation from Tehran. The renewed violence forms the backdrop for Bessent’s diplomatic huddles at the G20 summit.
A central question remains how the administration will handle Beijing, given that China stands as Iran’s biggest trading partner and the leading buyer of its oil. Bessent indicated that all options are on the table regarding potential sanctions against Beijing for continued purchases. However, he pushed back against suggestions of administration hesitation, asserting that the U.S. and China share common ground on reopening the Strait of Hormuz and preventing a nuclear Iran.
Bond Market Scrutiny and Domestic Pressures
Beyond foreign policy, Bessent’s G20 agenda faces a domestic backdrop of intense financial scrutiny. The Treasury Secretary addressed questions surrounding his approach to the national debt—which recently topped $40 trillion—and an unusual bond buyback program designed to cap rising yields and curb consumer borrowing costs.
