US Treasury Secretary Scott Bessent has warned that any financial institution aiding Iran’s “shadow bank” networks is “at risk of severe consequences”.

In a post on X, Bessent says Tehran’s illicit banking system serves as a “critical financial lifeline for its armed forces, enabling activities that disrupt global trade and [fuelling] violence across the Middle East”.

“Illicit funds funnelled through this network support the regime’s ongoing terrorist operations, posing a direct threat to US personnel, regional allies, and the global economy,” he adds. “Financial institutions are on notice: any institution that facilitates or engages with these networks is at risk of severe consequences.”