US mulls Iran ‘sanction of mass destruction’

While the US government already bans its citizens and entities from doing business with Bank Markazi, a specific designation could essentially freeze any foreign firm doing business with Bank Markazi out of the US market.

“Essentially financial institutions around the world would have to choose between doing business with the United States and with the central bank,” according to Avi Jorisch, a former advisor at the Treasury Department’s office of terrorism and financial intelligence.

That could have profound implications for foreign banks, for Iranian government revenues and the stability of Iran’s currency.

What makes this sanction so powerful is the institution’s role in funneling the wealth of Iran’s energy industry, which accounts for 70 percent of Tehran’s revenues.

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