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United States rolls out weekly banking sanctions on Iran under ‘Operation Economic Outcast’
Treasury Secretary Scott Bessent's new campaign targets banks, aviation networks, and dollar access in an escalating pressure campaign against Tehran.
The US Treasury is preparing another round of banking sanctions against Iran this week, part of a broader initiative called “Operation Economic Outcast” that aims to sever Tehran’s remaining connections to the global financial system. The campaign, launched on August 24, 2026, has already hit nearly 60 entities and vessels in its first week alone.
Treasury Secretary Scott Bessent is overseeing the effort, which rolls out secondary sanctions on a weekly cadence. The targets: banks, financial intermediaries, and support networks that help Iran access US dollar transactions and oil revenues.
The banking crackdown
The most notable action so far landed on August 28, when FinCEN proposed revoking US correspondent banking access for Banque Misr’s UAE branches. The Egyptian bank’s Gulf operations allegedly processed roughly $1.8 billion in dubious transactions between January 2024 and June 2026.
The sanctions also directly target Iranian financial institutions, including Bank Melli and Shahr Bank. Bank Melli is Iran’s oldest and largest commercial bank. Shahr Bank is a smaller institution tied to municipal financing.
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The initial tranche on August 24 included five sectoral sanctions determinations, a legal mechanism that broadens the categories of economic activity subject to penalties.
Aviation networks under the microscope
The US is examining airline leasing companies and support networks connected to sanctioned Iranian carriers, with Mahan Air drawing particular attention. Mahan Air has been under US sanctions since 2011 for providing material support to Iran’s Islamic Revolutionary Guard Corps.
The China dimension
China has historically been one of Iran’s largest oil customers, and Chinese banks have served as intermediaries for Iranian transactions that other financial systems won’t touch. The secondary sanctions framework forces foreign institutions to choose between doing business with Iran and maintaining access to the US financial system. Washington is maintaining a dialogue with Beijing about Iran to manage friction arising from this dynamic, with only minor intermediaries sanctioned so far.