Treasury Signals New Bank Sanctions to Choke Iran Financing Ahead of G20 Meetings

Treasury Secretary Scott Bessent told The Associated Press on Aug. 30 in Asheville, North Carolina, that the United States plans to impose sanctions on another bank this week as part of an intensified campaign to choke off financial channels to Iran. Bessent warned the measures could amount to “financial violence if we have to,” and said Washington would press G20 counterparts for cooperation during finance-leaders meetings this week.

The statement follows a recent Treasury proposal to cut the Emirati branches of Egypt’s Banque Misr off from the U.S. financial system and a wider package of designations targeting nearly 60 individuals and entities accused of helping Iran generate revenue and procure materiel. Bessent declined to name the next targeted institution and framed the move as the next step in an escalating economic campaign aimed at depriving Tehran of revenue streams.

U.S. officials have signaled a shift toward greater economic pressure as the administration pursues both military and financial lines of action in the six-month-old confrontation with Iran. Bessent told reporters he has told counterparts, including Chinese officials he expects to meet at the G20, that “all options are on the table” to curb trade and banking links deemed to benefit Tehran, while insisting the administration remains focused on growth and debt issues at the summit.

The policy raise practical and diplomatic questions. Cutting a foreign institution off from dollar clearing or the U.S. financial system can force banks worldwide to sever business ties with sanctioned customers, but it also risks backlash from major trading partners and could complicate relations with countries—such as the UAE, China and India—that maintain commercial links to Iran.

Domestically, Bessent’s announcement arrives as he faces scrutiny over other Treasury moves, including a controversial bond-market intervention and broader management of U.S. debt and deficits. The Treasury’s decision to restrict some reporters’ access to the G20 meetings has also drawn criticism and added to political heat on the department’s strategy and messaging.

Implementation will matter: Treasury sanctions typically rely on administrative designations and rulemaking that can be incremental and legally contested. If the administration names a specific bank, expect immediate market and diplomatic reactions, possible legal challenges or private-sector pushback, and urgent outreach from Washington to partners it needs to join any secondary-pressure campaign.