US warns foreign banks of sanctions for dealing with Iran
The US Treasury has issued a stern warning to foreign financial institutions, cautioning them against engaging in any business transactions with Iran or its banking sector. The alert, released on Monday, emphasized that such institutions could face sanctions from Washington at any time without prior notice and urged immediate cessation of any related activities.
This warning comes amidst escalating tensions between the US and Iran, following the former's declaration of war in late February. The conflict has led to widespread violence across the Middle East, with Iran retaliating against US allies in the Gulf and disrupting key trading routes, which has driven up global energy and fertilizer prices.
Since late August, the US has intensified efforts to economically isolate Iran, threatening secondary sanctions against allies conducting transactions with Tehran. The Treasury has imposed new sanctions targeting Iran's financial, cryptocurrency, rail, automotive, and manufacturing sectors. Additionally, two banks, one in the UAE and another in Turkey, have been sanctioned for allegedly aiding Iranian authorities.
The Treasury's statement also highlighted Iran's use of 'shadow banking' channels to bypass US sanctions, advising foreign financial institutions to identify and avoid such activities to prevent potential sanctions.