April 14, 2026 Unsigned Treasury Letter Concerning Iran Sanctions

Date issued: Apr. 14 2025

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TURBOFAC Commentary (336 words)

Notes:

1) Highly unusual letter issued at a point in the U.S./Israel-Iran war when the U.S. was involved in a “blockade” of the Strait of Hormuz and Treasury embarked on its own operation “Economy Fury” vis-à-vis Iran (see e.g. https://home.treasury.gov/news/press-releases/sb0443). In the letter, which was widely reported as having been sent to the UAE, China, Hong Kong and Oman (probably the central banking regulators, see e.g. https://www.nbcnews.com/world/iran/live-blog/live-updates-trump-blockade-iran-war-hormuz-israel-lebanon-talks-rcna331668#rcrd1079714), Treasury threatens secondary sanctions as a response to conduct of a very unclear scope. The letter says “[m]y hope is for your swift action to identify and stop any illicit activity linked to Iran to avoid further action from Treasury.” But it is unclear what is meant by “illicit”. Presumably, this is meant to be shorthand for “sanctionable,” irrespective of whether such conduct is actually illegal under the laws of any country with jurisdiction...