US Treasury warns foreign banks of Iran sanctions

U.S. Treasury on Oct. 6, 2026 issued an OFAC compliance alert warning foreign financial institutions that deals with sanctioned Iranian banks could trigger U.S. sanctions anytime without notice. It urged immediate termination of such activity and relationships, stating: "Foreign financial institutions continuing to transact with sanctioned Iranian financial institutions could be targeted at any time without advance notification and should take immediate action to terminate such activity and relationships." Penalties may restrict U.S. correspondent or payable-through accounts and dollar banking. Civil and criminal enforcement can apply if deals cause U.S. persons to breach sanctions. Targets include shadow-banking networks, front companies, exchange houses, intermediaries and foreign banks' third-country branches. Recent actions hit two banks in the UAE and Turkey; since late August sanctions cover Iran's financial, cryptocurrency, railway, automotive and heavy manufacturing sectors. The step occurs amid war that began Feb. 28, 2026 after U.S. and Israeli attacks on Iran and Iranian strikes on Israel and Gulf states, per Firstpost citing Reuters. Iran's Strait of Hormuz interdictions have affected energy, transport and fertilizer costs, according to Nukta. Available reports do not differ on the alert itself.