US Treasury Warns Foreign Banks of Immediate Sanctions Over Iran Ties

WASHINGTON, Oct 5 (Reuters) — The US Treasury Department warned foreign financial institutions on Monday that they may face sanctions without advance notice for continuing to do business with Iran or its financial sector, urging them to immediately sever such relationships. The alert, issued as Washington escalates financial pressure during the ongoing Iran war that began February 28, targets institutions facilitating Iran's access to the global financial system, including those serving Iranian banks or their subsidiaries and branches in third countries. Treasury said such institutions could face civil and criminal enforcement penalties and restrictions on US correspondent or payable-through accounts. Washington has already warned multiple countries in recent weeks to cut business ties with Iran or risk having key entities severed from the dollar-based financial system. Iran was heavily sanctioned before the conflict, which has killed thousands and displaced millions across Iran, Lebanon and the Gulf region.