Treasury Secretary Scott Bessent this week announced a sweeping new economic offensive against Iran, dubbed “Operation Economic Outcast,” and the first target was the Ayatollah’s favorite bank. Speaking with a tone that one observer described as chilling, Bessent promised an “economic D-Day” that would sever every financial lifeline until Tehran stands alone.
The administration ordered the United Arab Emirates to close all branches of Egypt’s Banque Misr, the country’s second-largest bank, and cut those branches off from the U.S. banking system entirely. According to a report cited by PJ Media, the UAE branch had served as the chief money launderer for Iran’s Supreme Leader. Treasury estimates indicate that Banque Misr UAE processed approximately $1.8 billion between January 2024 and June 2026 in transactions involving 103 companies that the department identified as potentially part of Iranian shadow-banking networks.
Treasury also alleged that some of the bank’s customers included front companies used by Iran’s Ministry of Defense and the Islamic Revolutionary Guard Corps to evade U.S. sanctions. The department further claimed that certain entities were used to launder money on behalf of Iranian Supreme Leader Mojtaba Khamenei.
The move came after the administration gave prior notice to Abu Dhabi and Egypt, which Bessent said was a demand rather than a request. He also issued a broader ultimatum: every branch of the Iran-based Bank Melli must be shuttered and dark. “Every branch of Bank Melli must be shuttered and dark,” he intoned, as a first step.
Bessent warned that any country or entity providing aid and comfort to Iran would face consequences if they did not act. “If they do not take action, we will do so unilaterally through Treasury authorities,” he said. “And let me be clear: any entity that facilitates money laundering on behalf of Iran will be removed from the U.S. dollar system.”
The Friday action cut off $1.8 billion in transactions linked to Iranian shadow banking, according to Treasury estimates. Bessent framed the campaign as a stark choice for world leaders. “No nation should expect to enjoy the rewards of our system while helping those who seek to destroy it,” he said. “It is now a time for world leaders to make a decision between prosperity and isolation, peace and terror. America and Iran.”
Edmund Fitton Brown, a former UK diplomat who worked on UN Security Council sanctions and now serves at the Foundation for the Defense of Democracies, welcomed the move. Speaking on the Adult in the Room Podcast, he said it may finally bring down the regime, though it could take a year. “Finally after so many years when people have imposed sanctions but turned a blind eye at violations and not imposed secondary sanctions on people who are helping basically to provide lifeline to the sanctioned entity or country,” he said.
Combined with a naval blockade, Iran may be on the ropes, Fitton Brown suggested. The administration’s aggressive posture signals a shift from past enforcement, which critics said was too lenient despite official sanctions.
Source: pjmedia.com — https://pjmedia.com/victoria-taft/2026/08/28/trumps-move-on-uae-in-operation-economic-outcast-should-settle-question-of-whether-hes-serious-n4956649
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