US Treasury warns foreign financial institutions of surprise sanctions over Iran
The US Treasury warned foreign financial institutions that continue to deal with Iran or its financial sector that they may face US sanctions at any time and without prior notice, and called on them to take immediate steps to end that activity and those relationships. The warning forms part of Washington's escalating economic pressure campaign on Tehran, which in recent months has targeted banks and financial institutions in third countries accused of facilitating Iranian transactions or providing alternative financial channels. It falls within the "economic exclusion" campaign announced by Treasury Secretary Scott Bessent in August, as Washington seeks to close off financial channels that could allow Iran to fund its activities through official banks or unlicensed exchange networks.
Why it matters: The move extends the use of secondary sanctions to third-country financial institutions, making sanctions and economic pressure the central instrument of US policy toward Iran.