Treasury Secretary Scott Bessent said Iran’s economy was “collapsing” as the United States expanded sanctions targeting Iranian aviation and foreign financial channels. Treasury’s actions include sanctions on airlines and banks, while a separate proposal could limit U.S. correspondent banking access for Banque Misr’s UAE branches.
In an Oct. 26 interview with Brian Kilmeade, Bessent said Iranians were “panicked.” Fox Business reported that he estimated Iran’s gross domestic product (GDP) could fall 20% to 25%, but its account did not specify a timeframe or comparison point. The International Monetary Fund (IMF) projects a 7.6% contraction in Iran’s real GDP in 2026, an annual forecast that cannot be directly compared with the reported estimate without a shared basis.
The U.S. Department of the Treasury launched Operation Economic Outcast on Aug. 24. Its first package covered digital assets, technology, gold, aviation and shipping, with nearly 60 people, organizations and vessels named for sanctions. On Sept. 8, the department’s Office of Foreign Assets Control (OFAC) sanctioned 36 aviation-linked targets, including 27 Iranian airlines, and suspended three aviation authorizations. Fox Business reported that Bessent described the effort as “shutting down their airline travel”; Treasury’s announcement does not establish that all air travel stopped.
Treasury designated Türkiye-based Golden Global Bank on Sept. 4 and Russia’s VTB Bank on Sept. 14 over alleged Iran-related financial activity. The department said foreign institutions handling Iran-linked transactions risk restrictions on access to the U.S. financial system.
A Sept. 1 filing by the Financial Crimes Enforcement Network (FinCEN) said 103 potential Iranian shadow-banking front companies used accounts at Banque Misr’s five United Arab Emirates branches for about $1.8 billion in transactions from January 2024 through June 2026. The filing put transactions in the most recent 12-month period at about $520 million. Those figures describe transactions through the accounts, not a confirmed total of illicit transactions.
FinCEN proposed restricting U.S. correspondent banking access for the UAE branches. Banque Misr said the branches were operating normally on Aug. 30. The comment period ended Oct. 1, and FinCEN’s current listing gives no date for a final decision.
