The central bank of the United Arab Emirates announced on Saturday that it would conduct a “special and urgent examination” of an Egyptian bank operating in the country, the latest fallout from the Treasury Department’s renewed push to isolate Iran. The U.S. Treasury Department said last week that the state-owned Banque Misr was helping Iran evade sanctions, drawing fresh attention to the Emirates’ role as a hub for trade with Iran. The department proposed a rule that would prevent the bank’s Emirati branches from doing business with American financial institutions, calling it “a critical node for the Iranian regime’s access to U.S. dollars.” It estimated that between January 2024 and June 2026, the bank’s Emirati branches had processed about $1.8 billion in transactions potentially tied to Iranian shadow banking networks.

“Treasury promised to sever every economic lifeline Tehran has left,” Treasury Secretary Scott Bessent said in the statement on Friday. Last week, he announced another round of economic warfare against Iran in the form of sanctions against dozens of entities, individuals and vessels. Banque Misr said it was treating the allegations with “utmost seriousness and attention” and planned to cooperate with the Treasury Department, adding that the suggested regulatory action would not affect its branches in Egypt or other countries aside from the Emirates.

The U.S. Treasury Department also imposed sanctions on the manager of an Emirati branch of Bank Melli, Iran’s largest lender, and a Hong Kong-based company it said had helped launder funds for an Iranian exchange house under U.S. sanctions. The Emirates, located just 50 miles from Iran across the Persian Gulf, has nurtured close economic ties with Iran for decades. This month, the UAE government said it was halting all trade and financial transactions with Iran, one day before the Trump administration said it was starting its renewed economic campaign against Iran.