US Treasury Secretary Scott Bessent announced on August 31 that Washington plans to impose sanctions on another bank this week, intensifying its campaign to economically isolate Iran while ceasefire negotiations between the two sides remain stalled. Bessent did not name the targeted bank in his interview with the Associated Press.
The announcement comes just days after the US severed operations of Banco Misr, Egypt's second-largest bank, from the US financial system over allegations of transactions with the Iranian government.
“This will be a financial strike if necessary. We are showing them that we know who you are, and you know it too. This has to stop,” Bessent told the AP.
In an interview with Reuters, Bessent indicated the next step could involve fully cutting off an entity from the dollar-based financial system. “You will see more actions every week. We start with banks and make clear that no Iranian money or support for the regime is allowed,” he said ahead of a meeting of finance ministers from the Group of 20 (G20) economies in Asheville, North Carolina.
The economic pressure campaign, dubbed “Operation Economic Outcast,” has been escalated by the US to force Tehran to make concessions amid stalled ceasefire talks. Last week, the US Treasury imposed new sanctions on nearly 60 individuals and entities allegedly linked to networks helping Iran generate revenue from oil, purchase weapons, and conduct cyber activities.
Iran has dismissed the latest US sanctions. Iran's Minister of Finance and Economic Affairs Ali Madanizadeh asserted that these measures will fail.
The conflict between the two sides flared up again on August 30, the first time since late July, when Iran launched missiles at two US bases in Jordan following a US strike on Larak Island in southern Iran.
Cooperation Against Iran
Bessent is expected to chair the G20 finance ministers' meeting, where he will hold bilateral meetings with counterparts from major and developing economies to encourage cooperation against Iran. He also said he would discuss with Chinese officials at the meeting and that “all options are on the table” regarding sanctioning Beijing for continuing trade with Tehran.
However, he rejected the notion that the US is hesitant to confront China, calling it a “completely false narrative put forward by the media.” He stressed that Beijing and Washington share the same view on the need to reopen the Strait of Hormuz and prevent Iran from developing nuclear weapons.
