WASHINGTON: The United States imposed new sanctions on Iran-related entities on Friday, expanding Washington’s economic pressure on Tehran amid its ongoing conflict with Iran.
The US Treasury said it had moved to restrict Egyptian bank Banque Misr’s branches in the United Arab Emirates from accessing dollar transactions over the bank’s dealings with Iran.
In a statement, the Treasury said its Crimes Enforcement Network (FinCEN) had proposed a rule to revoke Banque Misr UAE’s correspondent banking access to American financial institutions.
The Treasury Department also announced sanctions against a Hong Kong-based entity and an individual linked to Iran’s Bank Melli, according to a notice published on the department’s website.
U.S. Sanctions Sever Financial Lifelines of Iranian Regimehttps://t.co/3KmQNbDfHd
— U.S. State Dept – Near Eastern Affairs (@StateDept_NEA) August 28, 2026
The latest measures come after Treasury Secretary Scott Bessent warned earlier this week that Washington was prepared to take further action against Iran.
“Treasury promised to sever every economic lifeline Tehran has left and finally end the threat of the Iranian regime,” Bessent said in a statement.
“We also warned that Iran’s enablers cannot continue to enjoy access to the U.S. dollar and the global financial system. Banque Misr UAE decided to find out the hard way, and today, we are taking the first step in holding it accountable for its continued, egregious support of the Iranian regime.”
Tehran has urged other countries not to cooperate with or join the new sanctions, as Washington continues to tighten financial pressure on Iran.
New economic campaign against Iran
The Iranian foreign ministry, in a statement, has condemned the Washington’s new campaign of economic sanctions against the country, dubbed ‘Operation Economic Outcast’, calling it “tantamount to state terrorism against Iran and the world”, the ISNA news agency reports.
“The US’ abuse of the dollar as a tool to intimidate other countries to force them to follow its interventionist and international law-violating policies in relation to Iran is a violation of the national sovereignty and self-determination of all member states of the United Nations,” the statement said.
بیانیه وزارت امور خارجه درباره
تروریسم اقتصادی آمریکا علیه ایراناعلام جنگ اقتصادی علیه ایران در ادامه جنگ تجاوزکارانهای است که آمریکا و رژیم صهیونیستی در ۱.۵ سال اخیر به بهانههای واهی و بیاساس علیه ایران مرتکب شده و صلح و امنیت منطقهای و بینالمللی را به خطر انداختهاند pic.twitter.com/bhO6XJUEga
— وزارت امور خارجه (@IRIMFA) August 28, 2026
Additionally, the ministry says that the Washington’s campaign is a “continuation” of its joint war with Israel on Iran, which has been carried out “over the past 1.5 years under baseless and fabricated pretexts, thereby endangering regional and international peace and security”.
White House official says no talks with Iran ongoing or scheduled
Meanwhile US deputy press secretary Anna Kelly has said Washington is not engaged with any discussions with Iran.
“There are no talks or conversations going on, or scheduled, with the Islamic Republic of Iran,” says Kelly, reiterating Washington’s claims that the Strait of Hormuz is open and fully de-mined.
She added that Washington’s naval blockade against Iran “remains in full force and effect” and that the country’s economic campaign against Iran — termed “Operation Economic Outcast” — “is underway to sever every remaining economic lifeline sustaining the regime”.
Washington must stop pressure for diplomacy to resume: Iran
Earlier, Iranian Foreign Minister Abbas Araghchi said that diplomacy was still possible but depended on the United States recognising that pressure would not force Tehran to change its position.
“Putting diplomacy back on track isn’t impossible. It hinges on US understanding of one simple fact: pressure doesn’t work,” Iranian Foreign Minister Abbas Araghchi posted on X on Friday.
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Araghchi said he “had creative discussions” with Qatari Foreign Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani.
“The U.S. should build trust, speak respectfully, acknowledge our rights, and uphold commitments,” the Iranian foreign minister added.
Diplomatic efforts involving mediators including Pakistan and Qatar have sought for months to end the conflict, which began with US and Israeli military action in late February.
