WASHINGTON (AP) — The U.S. Treasury announced Friday it has imposed sanctions on a Turkish financial institution as part of its latest effort to sever “critical financial lifelines” for the Iranian government.
The actions against Golden Global Yatirim Bankasi Anonim Sirketi come nearly a week after Treasury Secretary Scott Bessent announced “Operation Economic Outcast, ” Washington’s new effort to get Tehran to capitulate to its demands after more than six months of war.
The department accused the bank and its entities of being established to enable Iran’s efforts to transfer oil revenues from China to Turkey, where they could then be converted to cash and gold. It also said the institution “knowingly offered” banking services to Iranian financial entities, including those already sanctioned by the U.S. government in 2022 for funneling Tehran’s oil sales.
In a press release, Bessent said that financial institutions with ties to Iran will “continue to find out the hard way that we are serious about Operation Economic Outcast.”
“While we hope no more banks will need to be sanctioned, that ultimately depends on how quickly the international community comes to its senses and ceases support of the murderous Iranian regime,” he continued.
“We know who you are, we know where you are, and we will continue to take action together with our allies and partners until we have buried the head of the Iranian snake.”
But so far, the operation’s goal to isolate Iran from its remaining global trade partners has fallen flat, with promises of an “Economic D-Day” for a group of countries that could include China and India quickly turning into warnings and negotiations with Iran’s trading partners.
The Trump administration’s reluctance to penalize major trading partners that do business with Iran was on display last week when the U.S. took steps to limit an Egyptian bank’s operations in the United Arab Emirates, but stopped short of imposing sanctions.
Bessent had previously told reporters that he wanted countries to have an opportunity to shift away from Iran before it was too late in a bid to avoid upending the global financial system.
The Trump administration has also resumed military strikes in recent days, prompting Iranian retaliation that renewed concerns about an all-out regional war. It’s unclear what the outcome of the two-pronged strategy will be for President Donald Trump, who has struggled for months to end a war with an intransigent Iranian government.