World mostly shrugs off Bessent’s ‘D-Day’ Iran sanctions threat

Treasury Secretary Scott Bessent began the week vowing an “economic onslaught” against Iran and its trading partners in a fresh bid to end the war. By the week’s end, countries with ties to Tehran had so far shrugged off the threat and analysts were left underwhelmed by the US actions.

China, which buys 90% of Iran’s oil, issued a defiant warning to Washington rather than back down. Iranian bank branches remained open in Dubai. At one Bank Melli branch in Abu Dhabi, staff were busy typing away and one employee explained that they were still open for business. 

Commercial flights also continued between Iran and Turkey as well as Iran and the United Arab Emirates, which had promised last week to sever all trade and financial transactions with Tehran. Routes flying to Thailand and Azerbaijan, as well as multiple destinations in both Russia and China, remained unaffected.

As the week came to a close, the US announced plans to sanction the UAE-based branches of Egypt’s Banque Misr. That fell well below expectations after Bessent’s warning that the world would see “a major announcement of a financial institution being sanctioned by the end of this week.”

“As the war passes the six-month mark, the public actions taken by the Treasury Department this week do not match the hype,” said Alex Zerden, a former US Treasury official and founder of Capitol Peak Strategies. 

“Operation Economic Outcast is a continuation of 47 years of restrictive economic........

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