Treasury Secretary Scott Bessent announced plans to impose sanctions on another bank this week as part of a broader strategy to curb Iran's financial activities. During an interview with The Associated Press, Bessent emphasized the need for countries still engaging with Iran to sever ties or face U.S. retaliation.
The administration's first action in this campaign involved a proposed rulemaking that would cut off the Emirati branches of Banque Misr from the U.S. financial system, although it stopped short of imposing direct sanctions on the bank. This indicates a cautious approach to avoid penalizing major trading partners like China and India, which Bessent will meet with at the G20 meetings.
He acknowledged the possibility of sanctioning China for its continued purchases from Iran but insisted that both nations share a common interest in stabilizing the Strait of Hormuz and preventing Iran from developing nuclear capabilities