Turkey’s banking regulator has cancelled the operating licence of Bank Mellat’s Istanbul branch amid continuing US efforts to push other countries to tighten economic pressure on Tehran.
“It has been decided to revoke the operating license of Bank Mellat, Head Office in Tehran, Istanbul Turkey Central Branch,” the notice said, without referring to US measures or to any specific operational problem.
The notice said the step was taken under a provision of Turkey’s banking law that permits a bank’s licence to be cancelled or withdrawn if its ongoing activity is found to threaten depositors’ rights or the security and stability of the financial system.
Bank Mellat has faced Western sanctions for years over allegations that Tehran was seeking a nuclear weapon while presenting its programme as civilian, reported Al Jazeera.
Those restrictions were removed under the 2015 agreement between Tehran and world powers aimed at limiting Iran’s nuclear activities.
The US later left the deal in May 2018 and restored economic sanctions on Iran.
In 2019, Bank Mellat was subjected to additional US and Gulf sanctions after being identified as one of 25 entities linked to Iran’s Islamic Revolutionary Guard Corps (IRGC).
The Turkish notice did not mention the US actions and gave no detail on operational issues.
Earlier this month, the US Treasury Department placed sanctions on a small Turkish investment bank and two subsidiaries.
More recently, the US Treasury imposed fresh sanctions on Russia’s VTB Bank, saying it had helped Iran work around existing restrictions, including through correspondent banking relationships with already sanctioned Iranian lenders.
It said the action was part of Operation Economic Outcast, an enforcement campaign announced by Secretary Bessent in August 2026.
According to the department, the programme raises sanctions risk for foreign institutions that continue transactions connected to Iran.
