WASHINGTON — The United States has issued a fresh warning to foreign financial institutions conducting business with Iran, saying banks and other financial entities that continue transactions with sanctioned Iranian institutions could face punitive measures from Washington.
The warning was contained in a statement issued Monday by the U.S. Department of the Treasury, which urged foreign financial institutions to immediately review and terminate relationships and transactions involving sanctioned Iranian banks and financial institutions.
“Foreign financial institutions continuing to transact with sanctioned Iranian financial institutions could be targeted at any time without advance notification,” the Treasury warned.
The latest move is part of Washington’s intensifying campaign to economically isolate Tehran and restrict the Iranian government’s access to the international financial system.
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The United States launched its war against Iran in late February, killing the country’s leadership and demanding that Tehran halt nuclear-related activities.
The conflict has since triggered a broader regional crisis, with Iran retaliating against the United States and its Gulf allies. The hostilities have also disrupted international trade and sent global energy and fertilizer prices sharply higher after a key regional trading route was effectively shut down.
Since late August, Washington has significantly escalated its economic pressure on Tehran, warning foreign governments and financial institutions that continued dealings with Iran could expose them to secondary sanctions.
The U.S. Treasury has subsequently imposed a series of sanctions targeting various sectors of the Iranian economy, including banking, cryptocurrency, rail transportation, automotive manufacturing and other industrial activities.
Washington has also taken action against financial institutions in the United Arab Emirates and Turkey, accusing them of facilitating transactions or providing support linked to Iranian authorities.
In its latest alert, the Treasury said the Iranian government has developed so-called “shadow banking” networks designed to circumvent U.S. sanctions and maintain access to international financial channels.
The department urged foreign financial institutions to strengthen their compliance measures and identify transactions that could be connected to these networks.
The warning places additional pressure on international banks with commercial links to Iran, particularly institutions seeking to maintain access to the U.S. financial system.
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Analysts say the growing sanctions campaign could further complicate Iran’s ability to conduct international trade, access foreign currency and maintain financial relationships with overseas institutions.
The latest development also raises concerns about the wider economic consequences of the escalating U.S.-Iran conflict, particularly for global energy markets, international shipping and countries heavily dependent on energy and fertilizer imports.
With Washington continuing to expand its sanctions campaign, foreign financial institutions now face a difficult choice between maintaining business relationships with Iranian entities and avoiding potentially severe penalties from the United States.
