The United States has moved to cut off an Egyptian bank’s UAE operations as the US-Israeli war against Iran marks its six-month anniversary — a move Tehran has branded “state terrorism.”
On Friday, the US Treasury Department confirmed it would block the UAE branches of Banque Misr — Egypt’s second-largest bank — from access to the US financial system. The bank, the official said, was being held accountable for “continued, egregious support of the Iranian regime.” The action takes effect after a one-month public comment period.
Treasury Secretary Scott Bessent laid out the administration’s broader strategy as one of “economic asphyxiation” of Iran. “We have warned that Iran’s enablers cannot continue to enjoy access to the US dollar and the global financial system,” Bessent said in a statement first reported by the Financial Times. “Banque Misr UAE decided to find out the hard way, and today, we are taking the first step in holding it accountable.”
Iran’s foreign ministry responded within the hour. In a statement that did not mince words, Tehran declared all nations legally obligated not to implement US sanctions, calling participation in them “complicity in imposing one state’s unlawful will on independent states.” The ministry labeled the measures a “crime against humanity” threatening the health and livelihood of millions of civilians, and called on the United Nations to uphold the rule of law.
The timing is deliberate. With six months of war behind them and the Strait of Hormuz — which handled 20 percent of global oil supplies before the conflict — still a flashpoint, Washington is pressing the economic chokehold. Trump has reiterated there are no US-Iran talks, and the White House has said the campaign continues until Tehran “comes to the table in a meaningful way.”
In Qatar, where mediation efforts are ongoing, Iranian Foreign Minister Abbas Araghchi met Qatari PM Sheikh Mohammed bin Abdulrahman Al Thani on Thursday. Araghchi described the discussions as “creative” but drew the line: “Putting diplomacy back on track isn’t impossible. It hinges on US understanding of one simple fact: pressure doesn’t work.” Al Thani, a US ally who helped broker the June ceasefire, is pushing to restore pre-war shipping through the Strait.
Whether Banque Misr’s UAE branches are the first domino in a much bigger chain of secondary sanctions — or just a symbolic opening shot — depends on how hard the Trump administration is willing to push before Tehran blinks. Six months in, the war has not been decided by air power. The next phase will be decided in boardrooms and SWIFT messages.
Source: Times of Israel, Aug 28, 2026