Turkey Strips Iran’s Mellat Bank of Istanbul Licence, Tightening Financial Front

The Concrete Rupture: On a quiet Thursday, Turkey’s banking authority announced the revocation of Mellat Bank’s licence, effectively sealing its doors in Istanbul and immobilising accounts that serviced Iranian traders. The decision was executed with immediate effect, leaving the bank’s staff to secure documents and clients to scramble for alternative channels. The Underlying Tension & Institutional Friction: The action reflects Ankara’s growing alignment with Western sanctions aimed at curbing Iran’s nuclear financing, even as Turkey balances its own regional ambitions. Tehran denounced the step as a breach of bilateral accords, while European allies welcomed the reinforcement of financial pressure. The Downstream Casualties & Tangible Outcome: Iranian businesses operating in Turkey now face liquidity shortages, forcing many to reroute funds through opaque networks in the Gulf. Regional banks anticipate a recalibration of correspondent relationships, and the episode may accelerate the shift toward non‑Western payment corridors.