World

US plans to sanction another bank to keep economic pressure on Iran

Al Jazeera · 2026-08-31

AI SUMMARY

• What happened: The US plans to impose sanctions on another bank this week as part of its strategy to economically isolate Iran amid stalled truce negotiations. • Why it matters: This move is part of a broader campaign, "Operation Economic Outcast," aimed at cutting off Iran's revenue streams and compelling compliance with US demands, amidst escalating tensions and military engagements between the two nations. • What to watch next: Monitor the upcoming G20 finance leaders meeting where US Treasury Secretary Scott Bessent will discuss cooperation against Iran and potential sanctions against China for its trade activities with Iran, as these developments could significantly impact international relations.

**Title: US Plans to Sanction Another Bank Amid Ongoing Pressure on Iran**

**Date: August 31, 2026**

The United States is set to impose sanctions on an additional bank this week as part of its intensified efforts to economically isolate Iran. This announcement comes amid stalled negotiations for a truce between the two nations, as stated by US Treasury Secretary Scott Bessent in a recent interview.

Bessent, speaking to The Associated Press, did not disclose the name of the bank that will be targeted. However, he emphasized the urgency of the situation, indicating that these sanctions are part of a broader strategy to cut off Iran's revenue streams. "This is going to be financial violence if we have to," Bessent remarked, underscoring the seriousness of the US approach. He added, "We are showing people that we know who you are, you know who you are, and this has got to stop."

The announcement follows the US Treasury Department's recent decision to sever the operations of Basque Misr, the second-largest bank in Egypt, from the US financial system. This action was taken after allegations surfaced that the bank was conducting business with the Iranian government. Bessent indicated that the US may consider cutting off banks entirely from the dollar-based financial system if they continue to engage with Iranian financial activities.

In an interview with Reuters, Bessent stated, "You’re going to see a lot more of these every week," referring to the anticipated sanctions. He highlighted that the focus is currently on banks, making it clear that it is unacceptable for these institutions to handle Iranian money or support the Iranian regime.

The US has ramped up its economic pressure on Tehran under a campaign known as "Operation Economic Outcast." This initiative aims to compel Iran to comply with US demands, particularly in light of the ongoing conflict and the recent resurgence of violence. Last week, the Treasury Department imposed sanctions on nearly 60 individuals and entities linked to networks that allegedly assist Iran in generating oil revenue, procuring weapons, and conducting cyber operations.

Despite the US's aggressive stance, Iranian officials have dismissed the latest sanctions. Ali Madanizadeh, Iran's Minister of Finance and Economic Affairs, expressed confidence that the measures would ultimately fail to achieve their intended goals.

The situation remains tense, with renewed violence reported as Iran launched missiles at two US bases in Jordan following a US attack on Larak Island in southern Iran. This escalation marks the first significant military engagement since late July, highlighting the fragile state of relations between the two nations.

In conjunction with these developments, Bessent is preparing for a meeting of G20 finance leaders in Asheville, North Carolina. He plans to engage with counterparts from both major and developing economies to foster cooperation against Iran. Additionally, he is expected to discuss trade relations with Chinese officials, reiterating that "all options are on the table" regarding sanctions against Beijing for its ongoing trade activities with Iran. Bessent refuted claims that the US is hesitant to confront China, asserting that both countries recognize the importance of reopening the Strait of Hormuz and preventing Iran from advancing its nuclear capabilities.

As the US continues to escalate its economic measures against Iran, the global community watches closely, aware that these actions could have far-reaching implications for international relations and regional stability. The outcome of the G20 discussions and the effectiveness of the sanctions will likely play a crucial role in shaping the future dynamics of US-Iran relations and broader geopolitical tensions.

Source: Al Jazeera
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