The US Treasury is preparing another round of banking sanctions against Iran this week, part of a broader initiative called “Operation Economic Outcast” that aims to sever Tehran’s remaining connections to the global financial system. The campaign, launched on August 24, 2026, has already hit nearly 60 entities and vessels in its first week alone.
Treasury Secretary Scott Bessent is overseeing the effort, which rolls out secondary sanctions on a weekly cadence. The targets: banks, financial intermediaries, and support networks that help Iran access US dollar transactions and oil revenues.
The banking crackdown
The most notable action so far landed on August 28, when FinCEN proposed revoking US correspondent banking access for Banque Misr’s UAE branches. The Egyptian bank’s Gulf operations allegedly processed roughly $1.8 billion in dubious transactions between January 2024 and June 2026.
The sanctions also directly target Iranian financial institutions, including Bank Melli and Shahr Bank. Bank Melli is Iran’s oldest and largest commercial bank. Shahr Bank is a smaller institution tied to municipal financing.
