On Friday, the Trump administration announced sanctions on Turkish financial institution Golden Global Yatirim Bankasi as part of an effort to cut off “critical financial lifelines” to Iran. This action follows Treasury Secretary Scott Bessent‘s launch of “Operation Economic Outcast,” which aims to isolate Iran from its trading partners further.
The Treasury Department accused the bank of facilitating the transfer of Iran’s oil revenue from China to Turkey, where the funds could be converted into cash and gold. It also claimed the institution provided banking services to Iranian entities, including those already sanctioned in 2022 for supporting Tehran’s oil sales.
Bessent stated that banks with ties to Iran would face consequences under this operation, emphasising the need for the international community to withdraw support from the Iranian regime. However, attempts to compel countries to cut financial ties with Iran have failed, and previous promises of significant economic repercussions have instead become warnings and negotiations. Last week, the administration limited an Egyptian bank’s operations in the UAE but did not impose sanctions on it.
The US has recently resumed military strikes, leading to Iranian retaliation. The outcome of this approach is uncertain for President Donald Trump, who faces challenges in ending an unpopular war as rising energy prices affect Republican prospects ahead of the November midterm elections.
The latest US sanctions target Golden Global Investment Bank, Turkey’s first investment bank, established in 2019 to offer banking services to foreign companies. The bank aims to enhance Turkey’s foreign trade.
This announcement came a day after Turkey’s Halkbank reached a settlement with the US Justice Department over violations of Iran sanctions. Prosecutors alleged that senior Halkbank officials facilitated the illegal transfer of $20 billion in Iranian oil revenues, with claims that high-ranking Turkish officials received bribes to protect the scheme, straining US-Turkey relations.
This article used information from The Associated Press.
