Turkey closes Iran’s Bank Mellat after 44 years, cutting a key financial channel under sanctions pressure
Turkey has revoked the operating license of Iran’s Bank Mellat in Istanbul, ending a 44‑year presence that included branches in Ankara and Izmir, as regulators cite banking stability risks amid rising U.S. sanctions pressure on Tehran’s regional networks.
Turkey has delivered a significant financial setback to Iran by shutting down one of its longest‑standing banking footholds in a major neighboring economy.
Regulators in Ankara have revoked the operating license of Iran’s Bank Mellat in Istanbul, closing its 44‑year footprint in the country. The bank’s branches in Ankara and Izmir are also affected. Officials cited risks to banking stability as U.S. sanctions pressure on Tehran’s regional networks increases.
For Iranian businesses that used Bank Mellat to trade with Turkish partners, the closure removes a relatively straightforward route for payments, credit and project financing in a market that has often served as a bridge to Europe and beyond. Turkish firms dealing with Iran now face greater compliance hurdles and may think twice about transactions that could draw scrutiny.
Individuals are hit too. Customers who relied on Mellat for remittances, tuition payments or medical transfers will have to seek alternatives in a financial environment where many institutions are wary of touching Iran‑related flows at all.
Strategically, the shutdown shows how U.S. financial pressure travels through third countries. Even as Turkey tries to balance its relationships with Iran, Western states and regional rivals, its regulators are effectively tightening the clamp on Iran’s access to the global banking system.
Bank Mellat has long been seen by outside observers as part of Iran’s effort to keep commercial links open despite sanctions. Losing its license in Turkey strips Tehran of a visible platform in a G20 economy that straddles Europe and the Middle East.
The timing coincides with heightened tensions involving Iran, including its warning that actions by the U.S. and Israel give it grounds to withdraw from the Nuclear Non‑Proliferation Treaty and statements about being ready for a decisive war. In that context, moves that limit Iran’s ability to move money count as one of the few tools available short of open military confrontation.
For Turkey, the decision carries its own risks. Iran could respond by complicating aspects of trade or energy cooperation, or by using its influence in nearby countries in ways that cut against Turkish interests. Ankara will also be keen to show that its own financial system remains sound and insulated from spillover effects.
Signals to watch include whether Iran shifts more activity to other Turkish or regional banks, whether Ankara targets additional Iranian‑linked entities, and how U.S. officials interpret the move in the wider picture of sanctions enforcement and regional diplomacy.
Sources
- OSINT