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US Plans New Iran Bank Sanctions to Escalate Economic Pressure — AI-generated representative image. The US Treasury Department building in Washington, DC, as Washington prepares new sanctions on Iranian banks.

Editorial Team

Treasury Secretary Scott Bessent signals weekly escalation under Operation Economic Outcast as Tehran truce talks stall

Washington plans to impose sanctions on another bank this week as it intensifies its campaign to economically isolate Tehran amid deadlocked truce talks, US Treasury Secretary Scott Bessent has announced.

Speaking to The Associated Press on Sunday, Bessent declined to name the targeted bank but signaled that further measures would follow in rapid succession.

The move marks a significant escalation in Washington's effort to cut Iran off from the global financial system, following days after the US moved to sever the UAE operations of Egypt's Basque Misr from dollar-based banking.

The pressure campaign, officially dubbed "Operation Economic Outcast," aims to force Tehran to accept Washington's demands as negotiations between the two sides remain stalled.

Escalating Sanctions Campaign

Bessent indicated that cutting an institution off entirely from the dollar-based financial system may be the next step. "You're going to see a lot more of these every week," he said ahead of a Group of 20 finance leaders meeting in Asheville, North Carolina.

Last week, the Treasury Department imposed fresh sanctions on nearly 60 individuals and entities that Washington accused of participating in networks helping Iran generate oil revenue, procure weapons and conduct cyber-operations.

Iran has rejected the latest sanctions, with Minister of Finance and Economic Affairs Ali Madanizadeh stating they will fail.

Background of the Pressure Campaign

The latest announcement follows Washington's decision days earlier to cut off the United Arab Emirates operations of Basque Misr from the US financial system, after accusing Egypt's second-largest bank of doing business with the Iranian government.

Bessent framed the campaign in forceful terms. "This is going to be financial violence if we have to," he told AP. "We are showing people that we know who you are, you know who you are, and this has got to stop."

Violence in the broader conflict resumed on Sunday for the first time since late July, when Iran launched missiles at two US bases in Jordan following a US attack on Larak Island in southern Iran.

G20 Diplomacy and China Stance

Bessent is preparing to host the G20 finance leaders meeting, where he plans to hold individual discussions with counterparts from major and developing economies to encourage cooperation against Iran.

He told AP he would speak with Chinese officials at the meeting and that "all options are on the table" regarding potential sanctions on Beijing for its continued trade with Tehran. Bessent rejected the notion that Washington was reluctant to confront China, calling it "a completely false narrative that the media picked up on."

He insisted that Beijing and Washington agree on the need to reopen the Strait of Hormuz and prevent Iran from developing a nuclear weapon.

What Comes Next

The identity of the bank to be sanctioned this week has not yet been disclosed, and further details are awaited.

Bessent signaled that weekly sanctions actions would continue, beginning with financial institutions, as Washington seeks to pressure banks against holding Iranian money or aiding the regime.