Turkey's BDDK banking watchdog revoked the operating licence of Iranian lender Mellat Bank's branch in Istanbul, according to a notice published in the Official Gazette on Saturday, as the US pushes for countries to increase economic pressure on Tehran.
The notice did not mention the US measures or any operational issues. It said the decision was taken under a clause in Turkey's banking law, which allows a lender's licence to be revoked or withdrawn if its continued operation is deemed to pose a risk to depositors' rights or the security and stability of the financial system.
The US Treasury Department this month imposed sanctions on a small Turkish investment bank and two subsidiaries. The US ambassador to Turkey, Tom Barrack, said the move was "aimed at the conduct of one entity, not at a nation, not at a banking system, and not at an ally". He added that "the health of the Turkish financial system is not in question; the conduct of one institution was".
The Treasury also said Turkey and Oman had decided to halt flights by Iranian airline Mahan Air as a result of discussions about complying with US measures against Iran.
Mahan Air, which is under US sanctions for alleged ties to the Islamic Revolutionary Guard Corps, said on Thursday that it would stop flights to Turkey and Oman. The airline said the suspension would be in place from September 21 "until further notice".
No public announcement has been made by Ankara or Muscat.
The cancellation of flights further isolates Tehran and reduces its already limited air connectivity. Flights to Istanbul provide Iranians with access to connections to Europe and elsewhere, with direct European routes already heavily constrained. Other options connecting Iran and Turkey remain, but US pressure is increasingly making companies wary of servicing Iranian airlines.
On September 8, the US imposed sanctions on 27 Iranian airlines and several foreign companies involved in supporting Iran's aviation sector. Washington also warned that companies enabling Iranian aviation activity subject to the sanctions could face consequences.
It is part of the US campaign to increase economic pressure on Iran as the war pushes energy prices higher worldwide.
US Treasury Secretary Scott Bessent last month unveiled Operation Economic Outcast, which aims to further squeeze Iran’s economy.
