Türkiye’s Banking Regulation and Supervision Agency (BDDK) has revoked the operating licence of Iranian lender Bank Mellat’s Istanbul branch, according to a decision published in the Official Gazette, as the United States continues to press other countries to increase economic pressure on Tehran.

The BDDK decision, dated September 18, stated that the operating licence of “Bank Mellat, Head Office in Tehran, Istanbul Türkiye Central Branch” had been revoked.

The notice did not cite U.S. sanctions or any specific operational problems at the bank as the reason for the decision.

Instead, the decision was issued under provisions of Türkiye’s banking legislation that allow the authorities to revoke an institution’s operating licence when its continued activities are deemed to pose a risk to depositors’ rights or to the security and stability of the financial system.

The move comes amid increased U.S. efforts to tighten economic pressure on Iran and encourage other countries to comply with Washington’s measures targeting Tehran.

Earlier this month, the U.S. Treasury Department imposed sanctions on a Turkish investment bank and two of its subsidiaries. Washington has also been seeking greater cooperation from Türkiye and other countries in restricting Iran’s economic and financial activities.

Bank Mellat is one of Iran’s major state-owned lenders and has operated in Türkiye for decades. The revocation of its Istanbul branch licence marks a significant development in the bank’s operations in the country.

Türkiye’s decision comes as Washington seeks to further isolate Iran financially and economically, while Ankara has maintained economic and diplomatic ties with Tehran despite U.S. sanctions. (ILKHA)