On Friday, the Trump administration announced that it has imposed sanctions on a Turkish financial institution, marking its latest move to sever what it described as “critical financial lifelines” for the Iranian government.

The measures against Golden Global Yatirim Bankasi Anonim Sirketi follow Treasury Secretary Scott Bessent's launch last week of "Operation Economic Outcast," Washington's latest effort to further isolate Iran, already heavily sanctioned, from its remaining trading partners, aiming to force it to yield to U.S. demands after more than six months of conflict.

The Treasury Department accused the Turkish bank and its affiliates of being set up to help Iran move oil revenues from China to Turkey, where they could then be turned into cash and gold.

It also stated that the institution "knowingly offered" banking services to Iranian financial entities, including those already sanctioned by the U.S. government in 2022 for funneling Tehran's oil sales.

Bessent, who had earlier in the week cautioned that another bank would face economic penalties, stated that financial institutions connected to Iran will "continue to find out the hard way that we are serious about Operation Economic Outcast."

"While we trust that no further banks will require sanctions, this ultimately hinges on how swiftly the international community regains its senses and ceases its backing of the murderous Iranian regime," he stated in a press release on Friday.

"We know who you are, we know where you are, and we will continue to take action with our allies and partners until the head of the Iranian snake is buried."

So far, however, the attempt to force those still trading with Iran to cut financial ties or face U.S. retaliation has not succeeded, as promises of an "economic D-Day" for countries like China and India quickly turned into warnings and negotiations with Iran's partners.

Bessent had earlier informed reporters that he wished to afford countries the opportunity to distance themselves from Iran before it became too late, aiming to avert disruption to the global financial system.

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The Trump administration’s reluctance to impose penalties on major trading partners that continue to conduct business with Iran was evident last week, when the U.S. took measures to restrict an Egyptian bank’s operations in the United Arab Emirates yet refrained from enforcing sanctions.

The U.S. has also resumed military strikes in recent days, provoking Iranian retaliation in the region.

The outcome of this two-pronged strategy for President Donald Trump remains uncertain, as he has struggled to end an unpopular war with an intransigent Iranian government, while rising energy prices pose problems for Republicans ahead of November's midterm congressional elections.

The latest U.S. sanctions target Golden Global Investment Bank, established in 2019 as Turkey’s inaugural investment bank, which, according to its website, was created to provide “banking services and alternative financing methods” to foreign enterprises.

The Istanbul-based bank, which remains largely obscure to most Turks, asserts that its objective is to bolster Turkey’s foreign trade by focusing on target markets in neighboring countries.

The Treasury announcement came a day after Turkey’s state-run Halkbank declared it had reached a settlement with the U.S. Justice Department in a nine-year case centered on sanctions violations involving Iran.

In that case, senior officials at Halkbank were alleged to have illicitly transferred approximately $20 billion in Iranian oil proceeds.

U.S. prosecutors contended that high-ranking Turkish government officials accepted millions of dollars in bribes to safeguard the operation.

The Halkbank case precipitated a significant rupture in U.S.-Turkish relations, prompting Turkish President Recep Tayyip Erdogan to personally lobby the White House for the case's dismissal.