Turkey Pulls Iran's Bank Mellat License in Istanbul as US Treasury Sanctions Pile Up on Tehran's Money Network

Turkey's Banking Regulation and Supervision Agency, known as the BDDK, revoked the operating license of Bank Mellat's Istanbul Central Branch. The decision, dated September 18, 2026, was published in the Official Gazette, according to Al Jazeera and the Jerusalem Post.

The notice cites a clause in Turkish banking law allowing license revocation when a bank's continued operation poses a risk to depositors or to the stability of the financial system. It does not mention US sanctions or name any specific operational problem. Both Al Jazeera and the Jerusalem Post flagged this directly.

Bank Mellat has a long history with Western sanctions. It was targeted over allegations Iran used its civil nuclear program as cover for weapons development, according to Al Jazeera. Those sanctions were lifted under the 2015 nuclear deal, reimposed after President Trump pulled the US out of that agreement in May 2018, and expanded again in 2019 when the bank was named among 25 entities tied to Iran's Islamic Revolutionary Guard Corps.

The Broader Squeeze

The Bank Mellat move comes amid a much larger US pressure campaign. Treasury Secretary Scott Bessent announced Operation Economic Outcast on August 24, 2026, which he has called "Economic D-Day," according to the Epoch Times.

Earlier this month, Treasury's Office of Foreign Assets Control sanctioned Istanbul-based Golden Global Yatirim Bankasi and two subsidiaries, accusing them of handling tens of millions of dollars for the IRGC-Quds Force and helping move Iranian oil revenue from China through Turkey, where it could be converted to cash and gold, according to Breitbart and the Jerusalem Post. Golden Global has denied the accusations, according to Al Jazeera. Treasury also linked the sanctioned accounts to Turkish businessman Sitki Ayan, whose network the US already sanctioned in 2022 over IRGC-Quds Force oil sales.

The Jerusalem Post reported Bessent told America's Voice News the sanctions are "code for you are out of business." Bessent also said Treasury will keep acting "until we have buried the head of the Iranian snake."

Days later, on September 14, 2026, Treasury sanctioned Russia's VTB Bank under Executive Order 13902 for building correspondent banking relationships with sanctioned Iranian banks and setting up a settlement system using Iranian rial and Russian ruble accounts, according to the Epoch Times. VTB was already under sanctions from 2022 and January 2025 over its ties to the Russian government. Treasury warned foreign banks still dealing with VTB now face heightened secondary-sanctions exposure.

The Jerusalem Post also reported that Turkey and Oman agreed to stop Iranian carrier Mahan Air from flying into their countries, a decision Treasury tied to compliance discussions.

A Republican Senator Turns on a NATO Ally

Sen. Rick Scott of Florida reacted to the Golden Global sanctions by declaring Turkey "NOT OUR FRIEND" on social media, according to Breitbart. Scott wrote that Treasury "had to crack down on them for actively funding Iranian terrorists who are killing our servicemen and women," adding "we cannot rest until anyone with ties to the evil Iranian regime is held accountable no matter who they are."

This marks a notable shift in tone toward a NATO member. Turkey's own regulator did act against an Iranian bank, and Ankara has now cooperated on the Mahan Air flight restrictions. A reasonable reading is that Turkey is responding to US pressure the way Washington wants, even if the BDDK's public notice doesn't say so. The gap between what Scott is accusing Turkey of and what its regulator just did is real, and neither side has reconciled it publicly.

The Diplomatic Backdrop

President Trump is set to address the UN General Assembly next week and plans to argue Iran must be prevented from obtaining a nuclear weapon, US Ambassador to the UN Mike Waltz told reporters, according to Fox News. Trump is also scheduled to meet with leaders from six Gulf Arab countries and to discuss the administration's 20-point Gaza peace plan.

Separately, China's Foreign Minister Wang Yi met Iranian Foreign Minister Abbas Araghchi in Beijing and said China was prepared to play a "constructive role" in resolving international disputes, according to Fox News, which cited Iran International. Araghchi said decisions made with China would "decide future strategic balance in the region." China has not publicly offered to formally mediate between Washington and Tehran. The meeting came ahead of Xi Jinping's planned meeting with Trump in Washington.

None of the sources establish that Turkey's regulator acted at Washington's direction. The BDDK notice is silent on motive. Whether Ankara's move against Bank Mellat was a coincidence of timing, quiet compliance with US pressure, or a purely domestic regulatory call is a question only Turkish officials can answer, and so far they haven't.