U.S. expands Iran-related sanctions as Tehran urges countries to reject them

The U.S. Treasury Department said Friday that its Financial Crimes Enforcement Network had proposed restrictions targeting Banque Misr’s operations in the United Arab Emirates.

Under the proposal, U.S. financial institutions would be prohibited from maintaining correspondent banking relationships with the six branches. If finalized, the measure would prevent them from processing transactions through the U.S. financial system.

The Treasury described the branches as an important channel for Iran’s access to U.S. dollars. According to the department, Banque Misr UAE handled approximately $1.8 billion in transactions for 103 companies potentially linked to Iranian shadow banking networks between January 2024 and June 2026.

Treasury Secretary Scott Bessent said the action was part of Washington’s effort to restrict Iran’s remaining access to the international financial system. He also warned that institutions facilitating such transactions could lose access to the U.S. dollar.

The Treasury’s Office of Foreign Assets Control separately imposed sanctions on Reza Mohammad Taeedi, manager of Iran’s Bank Melli branch in the UAE. A Hong Kong-based entity accused by the department of helping move funds for a sanctioned Iranian exchange house was also designated.

Iran’s Foreign Ministry rejected the measures on Friday, describing unilateral U.S. sanctions as unlawful. It argued that other countries were legally obliged not to enforce them and urged governments and United Nations bodies to oppose their implementation.

The ministry also said the restrictions threatened the health and livelihoods of Iranian civilians. These claims were not addressed in the U.S. Treasury’s announcement.

The Trump administration earlier warned countries and companies to reduce their commercial ties with Iran or risk secondary sanctions. President Donald Trump said Thursday that Washington was not holding talks with Tehran, while the White House stated that the economic campaign would continue until Iran entered substantive negotiations.

Diplomatic activity has meanwhile focused on restoring shipping through the Strait of Hormuz. Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani said after talks in Tehran on Thursday that he had emphasized the need to return navigation through the waterway to its pre-conflict conditions.

Iranian Foreign Minister Abbas Araqchi described the talks with the Qatari delegation as constructive in a post on X. He said diplomacy could be restarted but called on Washington to end its military and economic pressure.

Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, said Tehran was preparing a list of conditions for reopening the Strait. Washington maintains that the waterway must remain open to international shipping.

Admiral Brad Cooper, commander of the U.S. Central Command, said in a social media video that U.S. forces had removed sea mines that Washington attributes to Iran’s Islamic Revolutionary Guard Corps. He stated that international shipping lanes were open.

The developments came six months after the U.S. and Israel began military operations against Iran on February 28. The status of the Strait of Hormuz remains a central issue in efforts to restore a ceasefire.

Earlier, Qazinform reported that the United States had imposed sanctions on Tomoko Akane, the first Japanese national to head the International Criminal Court (ICC), in another escalation of the Trump administration's campaign against the Hague-based court.