WASHINGTON: The United States is preparing to impose further secondary sanctions on institutions accused of facilitating Iranian funds, with US Treasury Secretary Scott Bessent warning that new measures could be announced every week, initially targeting banks.
Speaking to reporters on Sunday ahead of a meeting of G20 finance leaders, Bessent said Washington would significantly increase pressure on financial institutions accused of handling Iranian funds or supporting Tehran.
The remarks followed the US decision on Friday to impose sanctions on UAE branches of Egypt’s Banque Misr over alleged financial ties to Iran.
Bessent warned that institutions targeted by Washington could ultimately face exclusion from the US dollar-based financial system, potentially restricting their ability to conduct international transactions in dollars.
“You’re going to see a lot more of these every week,” Bessent said. “We’re starting with the banks, and we’re telling the banks it’s not okay to have Iranian money and to aid the regime.”
The Treasury secretary said the administration’s initial focus would be on banks and other financial institutions that Washington believes are handling Iranian funds or helping Iran’s government circumvent US sanctions.
Bessent also said he would use the G20 meeting to press finance ministers and central bank governors to reduce or sever economic ties with Iran.
He warned that financial institutions and countries that continue such dealings could themselves become subject to US secondary sanctions.
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The latest measures signal a further tightening of Washington’s economic campaign against Tehran, extending pressure beyond entities directly operating in Iran to foreign institutions accused of facilitating Iranian financial activity.
The threat of being cut off from the dollar-based financial system could have significant consequences for affected institutions, given the central role of the US currency in international trade and finance.
Washington’s expanded sanctions drive comes amid heightened tensions between the United States and Iran, with the Trump administration seeking to restrict Tehran’s access to international financial networks and limit the economic resources available to the Iranian government.
The G20 discussions are expected to provide Bessent with an opportunity to urge major economies to take a tougher stance on financial dealings with Iran, while the prospect of additional secondary sanctions could increase pressure on banks and companies operating across international markets.
