"At any time and without prior notice": The American warning to banks that trade with Iran

The US Treasury Department issued a sharp warning to foreign banks maintaining ties with Iran, clarifying that those who continue to conduct transactions with sanctioned Iranian banks could themselves face penalties at any time and without prior notice. The alert was published as part of Operation "Economic Outcast," which calls for ceasing activity even through branches and subsidiaries in third countries. Treasury Secretary Scott Bessent reported a historic low for the Iranian rial and a halt in crude oil loading onto tankers last month.

The US Treasury Department today issued a sharp warning to foreign banks conducting business with Iran. The alert, published as part of Operation "Economic Outcast," clarifies that financial institutions that continue to transact with sanctioned Iranian banks could find themselves under US sanctions—"at any time and without prior notice." The Treasury emphasized that services provided to Iranian banks through branches or subsidiaries in third countries could also expose involved entities to punitive measures. Additionally, warnings were issued against transactions that could cause US citizens or companies to violate the sanctions regime, with civil and even criminal consequences. The operation focuses on disrupting the "shadow banking" networks of the Iranian regime, which use shell companies and complex financial structures to transfer and launder revenue from oil and goods. Treasury Secretary Scott Bessent reported that the Iranian rial has fallen to a historic low and that Iran did not load crude oil onto tankers last month, and even quoted an Iranian security official who admitted the country is experiencing "one of the hardest periods in its history."