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US Treasury's Bessent warns of 'financial violence' against Iran, targets Banque Misr UAE operations
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U.S. Treasury Secretary Scott Bessent announced the Trump administration is prepared to use 'financial violence' against Iran, warning banks that 'we know who you are.' The statement came ahead of G20 meetings in Asheville, North Carolina, as part of Operation Economic Outcast, an 'Economic D-Day' campaign launched on August 24. Treasury has already sanctioned nearly 60 Iran-linked entities and plans weekly secondary sanctions, beginning with banks. The first major banking move targeted Banque Misr's UAE operations for processing $1.8 billion for companies tied to Iranian shadow-banking networks. Bessent said all options are on the table regarding sanctioning China over continued Iranian oil purchases. The financial pressure coincides with renewed military hostilities: U.S. forces struck Iranian launchers on Larak Island near the Strait of Hormuz, and Iran retaliated with missiles toward U.S. bases in Jordan. Bessent dismissed claims the administration is reluctant to confront China as a 'completely false narrative.'
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By Shomik Sen Bhattacharjee Tue, September 1, 2026 at 8:00 AM PDT | 4 min read
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Treasury Secretary Scott Bessent said the Trump administration is ready to use "financial violence" against Iran and plans to sanction another bank this week as Washington intensifies efforts to isolate Tehran.
Bessent Threatens Tougher Financial Pressure
"This is going to be financial violence if we have to," Bessent told The Associated Press on Sunday ahead of Group of 20 meetings in Asheville, North Carolina. "We are showing people that we know who you are, you know who you are, and this has got to stop."
The threat marks the next phase of Operation Economic Outcast, the administration's "Economic D-Day" campaign. Treasury launched the operation on Aug. 24, sanctioning nearly 60 Iran-linked entities, individuals and vessels while expanding secondary sanctions across digital assets, technology, gold, aviation and shipping.
Bessent said Treasury expects new secondary sanctions weekly, beginning with banks tied to Iranian activity. Such measures can threaten foreign institutions with losing access to the U.S. dollar system if they continue facilitating transactions for Tehran.
Treasury Targets Iran's Banking Network
Treasury's first major banking move came last Friday, when it proposed cutting Banque Misr's UAE operations off from U.S. correspondent banking. Treasury said the Egyptian bank's UAE business processed approximately $1.8 billion for 103 companies potentially tied to Iranian shadow-banking networks between January 2024 and June 2026. The proposal remains subject to a 30-day comment period.
Bessent will use the G20 meetings to press counterparts to join the campaign. China remains the biggest test as Iran's leading oil buyer.
Asked whether Washington could sanction Beijing over continued purchases, Bessent told AP that "all options are on the table." He dismissed suggestions that the administration was reluctant to confront China as "a completely false narrative that the media picked up on." Bessent had previously warned that countries maintaining ties with Tehran risk "economic oblivion."
Renewed Fighting Complicates Economic Strategy
The financial push comes as military hostilities flare again for the first time since late July. U.S. forces struck two Iranian launchers on Larak Island near the Strait of Hormuz on Sunday. Iran then fired missiles toward U.S. bases in Jordan, Reuters reported.
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