US Threatens Sanctions on Banks Dealing With Iran 

The United States has warned foreign financial institutions that doing business with Iran or its banking sector could expose them to sanctions from Washington.

The US Treasury Department issued the warning on Monday, saying financial institutions that continue transactions with Iranian banks already under US sanctions could face penalties without prior notice.

The department urged foreign institutions to immediately end such transactions and sever relationships that could expose them to US sanctions.

“Foreign financial institutions continuing to transact with sanctioned Iranian financial institutions could be targeted at any time without advance notification and should take immediate action to terminate such activity and relationships,” the US Treasury said in an “alert” statement.

Washington has heightened its campaign to isolate Iran economically since late August, warning foreign partners that they could face secondary sanctions for conducting transactions with the Iranian government.

The move comes months after the United States launched its war against Iran in late February, killing members of the country’s leadership and demanding an end to nuclear-related activities.

Iran’s retaliatory attacks targeted US allies in the Gulf, while disruptions to a major regional trading route contributed to sharp increases in global energy and fertiliser prices.

As part of its broader pressure campaign, the Treasury has introduced additional sanctions targeting Iran’s financial, cryptocurrency, rail, automotive and manufacturing sectors.

Washington has also sanctioned two banks, one based in the United Arab Emirates and another in Turkey, over their alleged support for Iranian authorities.

The Treasury said Iran’s government operates so-called “shadow banking” networks to bypass US sanctions. It urged foreign financial institutions to strengthen their efforts to detect and avoid transactions conducted through such channels.