The Treasury Department has threatened to impose secondary sanctions on foreign banks that may be aiding Iran as the weekslong war persists.
The secondary sanctions are part of the Trump administration’s “Economic Fury” effort, an allusion to Operation Epic Fury.
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“Treasury is moving aggressively with Economic Fury, maintaining maximum pressure on Iran,” the department posted on X on Tuesday afternoon. “Financial institutions should be on notice that the department is leveraging the full range of available tools and authorities and is prepared to deploy secondary sanctions against foreign financial institutions that continue to support Iran’s activities.”
Unlike primary sanctions, secondary sanctions target third-party individuals or entities that are found to be aiding sanctioned countries from abroad.
The Treasury sent letters to China, Hong Kong, the United Arab Emirates, and Oman seeking their cooperation in dealing with the banks accused of permitting illicit transactions benefiting Iran, according to a copy obtained by Al-Monitor.
“The Treasury Department encourages you to work with banks in your jurisdiction to identify any Iran-related financial activity, including through front companies and other evasive tactics, and immediately cease such activity in light of the significant illicit finance risks this activity poses,” the letter reads.
Iran processed at least $9 billion through U.S.-based correspondent banking accounts in 2024 using front companies in Hong Kong and the UAE, according to an October 2025 report issued by the Treasury’s Financial Crimes Enforcement Network.
Additionally, the administration is letting its waiver permitting the sale of Iranian oil expire on April 19.
“The short-term authorization permitting the sale of Iranian oil already stranded at sea is set to expire in a few days and will not be renewed,” the Treasury said in its social media post.
On March 20, the department issued a waiver to help approximately 140 million barrels of oil reach global markets, as the Strait of Hormuz, considered the world’s most critical oil chokepoint, remained closed. The waiver’s looming expiration comes after the United States and Iran failed to reach a long-term peace deal, though the fragile two-week ceasefire is still in effect.
