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US President Donald Trump’s administration has virtually blacklisted the entire Iranian financial sectors. The administration is now dealing with another blow to an economy that is already reeling under U.S sanctions. The recent move will increase tensions with European nations and others over Iran. It hits 18 Iranian banks that had thus far escaped the bulk of re-imposed U.S sanctions and more importantly, subjects foreign, non-Iranian financial institutions to penalties for doing business with them. Point to be noted that the move effectively cuts them off from the international financial system. The US Treasury Secretary, Steven Mnuchin said, “Today’s action to identify the financial sector and sanction eighteen major Iranian banks reflects our commitment to stop illicit access to U.S. dollars”.

Mnuchin added, “Our sanctions programs will continue until Iran stops its support of terrorist activities and ends its nuclear programs. Today’s actions will continue to allow for humanitarian transactions to support the Iranian people”. The recent action targets 16 Iranian banks for their role in the country’s financial sector. One bank for being owned or controlled by another sanctioned Iranian bank and one military-affiliated bank. Some of them had been covered by previous designations but Thursday’s move places them all under the same authority covering Iran’s entire financial sector. European nations have opposed the blanket financial services blacklisting because it will open up their biggest banks and other companies to U.S penalties for conducting business with Iran that had previously been allowed.

The targeted banks include the Amin Investment Bank, Bank Keshavarzi Iran, Bank Maskan, Bank Refah Kargaran, Bank-e Shahr, Eghtesad Novin Bank, Gharzolhasaneh Resalat Bank, Hekmat Iranian Bank, Iran Zamin Bank, Karafarin Bank, Khavarmianeh Bank, Mehr Iran Credit Union Bank, Pasargad Bank, Saman Bank, Sarmayeh Bank, Tosee Taavon Bank, Tourism Bank, and Islamic Regional Cooperation Bank. Foreign companies that do business with those banks were given 45 days to wind down their operations before facing secondary sanctions. Iranian Foreign Minister Mohammed Javad Zarif said, “Iranians WILL survive this latest of cruelties. But conspiring to starve a population is a crime against humanity. Culprits & enablers, who block our money, WILL face justice”.