US to sanction new bank as part of Iran economic isolation push

US Treasury Secretary Scott Besant announced that President Donald Trump’s administration plans to impose sanctions on a new bank this week, stepping up efforts to economically isolate Iran.

In an interview with the Associated Press, Besant described the move as “financial violence” if necessary, stressing that the targeted entities are aware of the measures and that such behavior must stop.

Besant’s comments came ahead of the G20 meetings in Asheville, North Carolina, where he will hold bilateral talks with officials from major and emerging economies to urge cooperation against Iran.

He added that his focus will be on encouraging economic growth, amid scrutiny over the bond buyback program and his approach to managing the US’s $40 trillion debt.

The US official did not disclose the name of the bank that will be sanctioned this week.

This move follows the Trump administration’s shift from military strikes to an “economic ostracism” strategy against Iran, in a conflict now entering its sixth month.

Meanwhile, the US and Iran escalated hostilities on Sunday, with American forces striking Iranian rocket launchers in the Strait of Hormuz—the first US military action in a month. Iran responded by vowing retaliation for what it called a “bloody attack.”

At the same time, the US administration has relied on warnings rather than imposing new sanctions on Iran’s trading partners.

Questions remain over how Trump will handle China, Iran’s largest trading partner and main oil customer.

Besant confirmed he will discuss all options with his Chinese counterparts at the G20, including possible sanctions on Beijing for continuing to buy Iranian oil, denying any hesitation by the administration to confront China.

On Friday, the US Treasury Department proposed a regulatory rule that could bar the UAE branch of Banque Misr from accessing the US financial system, marking the first official step in the “economic ostracism” campaign.

The administration’s reluctance to sanction the Egyptian bank reflects its hesitation to penalize Iran’s key trading partners, such as China and India.