The U.S. Treasury Department announced new sanctions against Turkey's Golden Global Bank and its subsidiaries on Friday. This move is part of its ongoing campaign against Iran. The sanctions are part of "Operation Economic Outcast," which President Donald Trump called an "economic D-Day" for Iran. Treasury Secretary Scott Bessent said the U.S. is committed to cutting Iran off from the global financial system.
Key Details
The sanctions aim to disrupt financial support for Iran's economy, especially in oil transactions. Bessent noted that the European Union has formally joined the U.S. effort. He stated that the bloc is now part of the initiative. However, critics argue that the EU's support does not mean a formal commitment to the sanctions. A statement from the European Commission welcomed the U.S. campaign but did not clearly align the EU with the sanctions.
Experts have raised doubts about the effectiveness of these measures. They point out that Iran has a long history of evading sanctions. A regional source said, "The Iranians have been handling and evading sanctions for half a century; they can take pretty much anything thrown at them." Despite this, Bessent insisted that the U.S. has never imposed sanctions at this level of intensity.
Background
The Treasury has also proposed cutting off the UAE branches of Banque Misr, Egypt's second-largest bank, from the U.S. financial market. This follows the targeting of the general manager of Bank Melli's Dubai branch, Iran's largest bank, as part of the broader sanctions strategy.
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The sanctions are likely to affect the financial sector, especially banks with ties to Iran. They could also lead to higher costs for companies involved in oil transactions. Investors will monitor further developments in the sanctions strategy and any potential responses from Iran.
Based on reporting by: us.cnn.com, euronews.com