Trump administration targets Iran's financial sector, sanctions major banks

The Trump administration on Thursday targetted 18 Iranian banks to shut the country global banking system just weeks ahead of the US elections.

"Our sanctions programs will continue until Iran stops its support of terrorist activities and ends its nuclear programs," Treasury Secretary Steven Mnuchin said.

However, the US government declared that it was exempting transactions in humanitarian goods amid the coronavirus crisis.

The US government has given the banks 45 days to wind down operations. The move comes as the Trump government continues to squeeze Iran after walking out of the Iran nuclear deal two years ago which was brokered by former President Barack Obama.

The latest sanctions have been aimed to stop Iran from using the financial system to fund the nuclear programme and "malign regional influence", it said, without going into specific details.

President Hassan Rouhani had said earlier that the country was going through the toughest year due to US sanctions and the coronavirus pandemic as the country's oil exports plunged to a new low amid the embargo.

The US government has targeted several sectors of the Iranian economy in a bid to apply "maximum pressure" on the Rouhani government.