US Treasury Secretary Scott Bessent announced on 1 September that Washington is preparing a fresh wave of sanctions targeting banks that facilitate transactions for Iran, warning that any entity conducting business with the Islamic Revolutionary Guard Corps (IRGC) risks being cut off from the American financial system. The remarks were made at a fireside conversation with Larry Kudlow in Asheville, North Carolina, on the sidelines of the G20 finance ministers' summit.

Sanctions Timeline and Scope

'We're probably going to announce a bank sanction this week and we are going to have another one the week after,' Bessent said, signalling an accelerated enforcement calendar. The Treasury Department is broadening its pressure campaign beyond conventional banking to cover digital assets, aviation, and maritime networks. 'The Treasury now has five new authorities and it is across digital assets. It is across aviation. It is across maritime. And we are flexing every day,' he added.

Egyptian Bank Branch Case Cited as Model

Bessent cited a specific enforcement action involving a branch of an Egyptian bank in Dubai that he said had channelled more than USD 1.8 billion to the Iranian government. Washington invoked authority under the Patriot Act to shut down the Dubai operation while leaving the bank's Egyptian parent entity untouched — a targeted approach the Treasury appears to be replicating across the region. The action illustrates how the US is attempting to isolate Iranian financial flows without triggering broader diplomatic fallout with third-country governments.

IRGC Assets and Personal Accounts in Crosshairs

In a direct warning to Iranian officials, Bessent said the Treasury had identified accounts held through trust companies in the British Virgin Islands, as well as high-value properties in multiple countries. 'We are going to freeze those. We are going to, with our partners, we are going to close all that down,' he said. Enforcement, he warned, could extend to banks, airline leasing companies, and any entity that transacts with the IRGC, which the United States has designated a foreign terrorist organisation since 2019.

International Support and China Engagement

Bessent said the administration had secured backing from the European Union, the European Central Bank, Britain, and the United Arab Emirates (UAE), and vowed 'zero tolerance' towards sanctions evasion efforts. Notably, he disclosed that Washington had held private discussions with China on Iran, despite broader geopolitical tensions between the two powers. 'We have more in common with the Chinese on Iran than we disagree with,' he said, adding that Beijing agreed Iran must not acquire a nuclear weapon and shared an interest in freedom of navigation — a pressure point given Iran's repeated accusations of threatening commercial shipping lanes.

US Economy and Broader Context

On the domestic front, Bessent said the US economy was re-accelerating, crediting regulatory, tax, and energy policies under President Donald Trump with boosting investment and employment. He noted that global finance ministers gathered at the G20 acknowledged growth had outperformed expectations despite the ongoing Iran conflict. Washington has maintained a sustained sanctions architecture against Tehran for decades, targeting the IRGC, energy exports, shipping networks, and intermediaries accused of facilitating evasion. Secondary sanctions — which can penalise non-US institutions for certain dealings with sanctioned Iranian entities — remain a central enforcement tool.

The coming weeks are expected to bring further designations, with the Treasury's expanded authorities signalling a more aggressive phase of financial pressure on Tehran.