Turkey’s Banking Regulation and Supervision Agency (BDDK) has officially revoked the operating license of Bank Mellat, an Iranian financial institution that has maintained a presence in Istanbul for over four decades. The decision marks a significant shift in the financial relationship between the two neighboring nations.

While the revocation occurs during a period of heightened economic pressure from the United States, which maintains Bank Mellat on its sanctions list, the Turkish government has not explicitly linked the closure to American foreign policy. According to reports, the BDDK justified the decision by citing regulatory provisions that allow for the withdrawal of a license if a bank’s continued operations are deemed to pose a risk to the domestic financial system.

Bank Mellat has been a frequent target of international financial scrutiny due to its alleged connections to Iranian state activities. By revoking the license, Turkey effectively shuts down the bank's primary branch in Istanbul. The move leaves questions regarding the future of Iranian financial operations within Turkey, as the country attempts to balance its regional diplomatic ties with Iran against the potential for secondary sanctions or pressure from Western allies. The Turkish regulator has not provided further details on the specific 'risks' that triggered the sudden administrative action, leaving the exact motivations behind the timing of the decision open to interpretation.