About $9 billion in Iran-linked funds moved through U.S. banks in 2024 despite sanctions intended to isolate Tehran from global finance, as fighting between the U.S. and Iran escalates around the Strait of Hormuz. The Wall Street Journal reported the flows, citing Western officials and researchers. Iran uses foreign partners, shell companies in Hong Kong, the United Arab Emirates and other jurisdictions, currency exchange houses and foreign institutions with correspondent-banking relationships to obscure the parties behind dollar transactions. The Treasury Department said the UAE branch of Egypt’s state-owned Banque Misr processed approximately $1.8 billion between January 2024 and June on behalf of 103 companies potentially linked to Iran. Washington has initiated procedures to block the branch from opening or maintaining correspondent accounts at U.S. financial institutions; the branch reportedly held dollar accounts at three U.S. banks. The Trump administration’s Operation Economic Outcast campaign has pressed financial institutions worldwide to strengthen monitoring of Iran-related transactions. Authorities face a trade-off because broader restrictions could disrupt international payments, damage U.S. banks’ correspondent-banking business and encourage greater use of the yuan or cryptocurrencies, potentially weakening the dollar’s international role. Iran already uses those alternatives to evade U.S. surveillance but still needs dollars for some trade and technology purchases.