The US Treasury Department on Friday unveiled its first 'secondary' Iran sanctions related to Trump's 'Economic D-Day' against Iran, on Friday naming an Egyptian bank in the UAE.
Ironically both of these latter countries are close American allies, and this comes at a moment the White House has failed to confirm whether the US will actually go after China for the same trade violations.
Via britannica.comThe UAE branches of Egypt's Banque Misr are being newly sanctioned over their business dealings with Iran, cutting off the branches' access to US financial institutions and forbidding transactions in US dollar.
"Treasury promised to sever every economic lifeline Tehran has left and finally end the threat of the Iranian regime," Treasury Secretary Scott Bessent said in a statement given to FT.
"We also warned that Iran's enablers cannot continue to enjoy access to the US dollar and the global financial system. Banque Misr UAE decided to find out the hard way and, today, we are taking the first step in holding it accountable for its continued, egregious support of the Iranian regime," Bessent added.
In addition, there is an entity which could be characterized as on the 'periphery' of China and its Iran dealings also newly named and targeted.
Treasury separately imposed sanctions on a financial entity in Hong Kong and one person linked to Iran's Bank Melli. This is "a Hong Kong entity that it said helped launder money for a sanctioned Iranian exchange house," Reuters notes of the statement.
Reuters further explains of the new action:
Egypt's central bank said on Friday that the U.S. action only affected Banque Misr's UAE branches and did not extend to any other Egyptian banks. The Central Bank of Egypt said in a statement that it and Egypt's Ministry of Foreign Affairs were in contact with the U.S. authorities about the measures.
A Treasury official also said the action only applies to Banque Misr's UAE branches, allowing the bank to continue dollar transactions through its head office in Cairo and other foreign branches. These include Paris, Frankfurt, Riyadh, Beirut and Djibouti, according to Banque Misr's website.
...So even the Egypt-related action is very limited in terms of its reach. The Egyptian government has long been under the direct influence of US foreign policy, given that decades ago it made peace with Israel, and is recipient of a regular flow of billions in foreign aid going back decades.
Trump this month basically halted all over military actions against Iran, opting instead for unleashing a "most crushing economic operation" against Tehran.
.@SecScottBessent: "The new sectoral sanctions determinations issued today target five of Iran's most vital lifelines that it exploits in other countries: digital assets, technology, gold, aviation, and shipping." pic.twitter.com/QlTdO8jSnx
— Treasury Department (@USTreasury) August 24, 2026"ANY country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran will itself face TREMENDOUS Economic Consequences," Trump stated on Truth Social.
But again it is still very up in the air whether Washington will actually directly target Beijing with any punitive actions over its oil trade relationship with the Islamic Republic.
Tyler Durden Fri, 08/28/2026 - 20:30Authored by Kevin Stocklin via The Epoch Times,
As inflation ticks upward, Republican lawmakers are pushing for capital gains taxes to be indexed to inflation, which could translate into a significant tax cut for American investors, homeowners, and savers.
However, critics say it could put the government further in the red.
A stack of individual income tax forms at the Des Plaines Public Library in Des Plaines, Ill., on March 23, 2006. Tim Boyle/Getty ImagesSen. Ted Cruz (R-Tex.) sponsored the Capital Gains Inflation Relief Act of 2025 to index capital gains to inflation. In March, Cruz and Sen. Tim Scott (R-S.C.) sent a letter to Treasury Secretary Scott Bessent urging him to enact inflation indexing without waiting for Congress. House Republicans sent a similar letter days later.
"Homeownership and long-term real estate investment remain central to achieving the American Dream for millions of families," House Republicans wrote. "Yet under current tax treatment, taxpayers are often required to pay capital gains taxes not only on real economic appreciation, but also on nominal gains attributable solely to inflation."
Thus far, Bessent has not stated his position on the issue. Here's what to know about the proposal.
The Cost of InflationCurrently, Americans are taxed on assets when they sell, based on the difference between the purchase price and the sales price, or nominal gains. For those who hold an asset longer than one year, the capital gains tax rate is between zero and 20 percent, depending on a filer's overall taxable income.
But because assets appreciate over time, inflation also enters into the calculation.
"The tax code treats inflation like it is income, which it isn't," Adam Michel, director of tax policy studies at the Cato Institute, told The Epoch Times. "When you sell an asset, you're taxed on the nominal gain-real growth and inflation lumped together-so you pay tax both on dollars you earned and the phantom income from inflation."
Since 2020, the U.S. dollar has lost about 29 percent of its value to inflation. And at times of high inflation and low growth, the effective capital gains tax rate can top 100 percent, Michel said, which has occurred in at least nine years since 1957.
Inflation indexing would increase the cost basis, or purchase price, of an asset in line with inflation during the period the asset was held.
America's tax code treats long-term capital gains more favorably than other forms of income, with lower tax rates, some exemptions for homeowners, and forgiveness of gains on assets that are passed on at death. Part of the rationale is to encourage investment; part of it is that savings that are used for investment have often already been taxed.
In 2025, capital gains taxes accounted for about 10 percent of total government receipts, according to the Peter G. Peterson Foundation.
Critics say that inflation indexing will largely benefit the rich and reduce revenue for a government that runs annual deficits and is now $40 trillion in debt.
John Whiten, deputy director of the Institute on Taxation and Economic Policy, derided inflation indexing on the ITEP blog as "a massive new tax break for wealthy investors."
According to Yale University's Budget Lab, the impact on federal budgets depends on whether it applies to all current assets or only purchases when a change is implemented. Indexing all assets to inflation would reduce tax revenue by nearly $1 trillion over 10 years; if the change were limited to new asset purchases, it would reduce federal revenue by about $170 billion.
Who Benefits From Inflation Indexing?The greatest gains would go to stock market investors, but homeowners would benefit as well.
A 2022 analysis by the Congressional Research Service (CRS) estimated that about two-thirds of total capital gains tax revenue came from corporate stock holdings. Real estate and business property together comprised about 30 percent.
In addition, the CRS states that capital gains are "largely concentrated in higher incomes" and that "the top 1% of tax units accounts for 16.7% of total income but 75.4% of capital gains."
However, looking at the number of people who would benefit from inflation indexing versus absolute dollars paints a different picture. A 2020 report by the IRS stated that 68 percent of Americans who were taxed on their capital gains earned less than $200,000.
America's federal tax code is already structured to favor homeownership. In addition to mortgage interest being deductible, capital gains tax on homes includes exemptions. For single filers, the first $250,000 in price appreciation from selling their primary residence is exempt from taxes; for joint filers, the exemption is $500,000.
Retirees who saved through 401(k) programs would generally not benefit, because those funds are not subject to tax until withdrawal, and withdrawals are taxed as current income rather than capital gains.
Experts say it is legally untested whether or not the Trump administration could implement tax indexing without congressional action. However, a similar plan was considered under the administration of President George H.W. Bush, and a CRS analysis opined in 1992 that the executive branch did not have the authority to implement inflation indexing on its own.
"Changing tax laws is Congress's job, and that's for a good reason," Michel said. "Doing this without Congress opens the rule up to both legal uncertainty and future administrations rolling it back, both of which undermine the goal of ending the inflation tax."
In addition to federal taxes, tax treatment for capital gains varies significantly at the state level, according to Kiplinger, a personal finance analytics group.
Residents of Alaska, Florida, Missouri, Nevada, South Dakota, Tennessee, Texas, Wyoming, and New Hampshire do not pay state tax on capital gains. By contrast, states such as California charge up to 13.3 percent in state capital gains taxes, with New York and New Jersey, along with the District of Columbia, all charging more than 10 percent.
Tyler Durden Fri, 08/28/2026 - 20:05Summary:
President Trump has made it official with a late in the day Friday Truth Social Post, announcing a deal has been struck with Venezuela for a US majority stake in more than 65 billion barrels of oil reserves, after six months of administration scrambling to control the Strait of Hormuz crisis.
On Truth Social he called it the biggest oil deal in world history which comes "at no cost to" U.S. taxpayers and which more than doubles the US oil reserve.
"This Transaction will greatly strengthen the already growing relationship between Venezuela and the United States," Trump wrote in the post. Also...
Trump said the Venezuela deal should bring down prices at the pump. The average price of a gallon of gas in the U.S. reached around $4.09 on Friday, a 27% increase year over year, according to AAA.
Over a dozen productive oil fields are said be central to deal, following US officials having long hyped Trump's "Donroe Doctrine" and what it can do to bolster American energy independence and security. Of course, instead of 'talks' or 'negotiations'... in reality this is more simply about demands be dictated to the 'new' post-Maduro US client state in South America.
Caracas Mulls OPEC ExitFocus on the Strait of Hormuz is shifting to South America late in the week as the Trump administration moves to secure new long-term crude supplies in Venezuela. The U.S. is nearing an agreement that could place 17 Venezuelan oil fields under 100-year leases operated by U.S. oil companies.
According to Bloomberg, sources told the outlet that Caracas has discussed a possible exit from OPEC with U.S. officials. The sources said no final decision has been made, but the discussions come as the U.S. negotiates 100-year leases on several Venezuelan oil fields that require billions of dollars in investment.
Such an exit from OPEC would be symbolic, given that the South American country was one of the organization's five founding members in 1960 and played a key role in establishing the expanded OPEC+ alliance with Russia in 2016.
More recently, the United Arab Emirates became another producer to announce its departure from OPEC. Venezuela is only considering withdrawal, while Iraq has expressed frustration but has yet to announce a formal exit.
A Venezuelan exit would not result in an immediate surge in crude production because of years of underinvestment, which is why the U.S. is seeking to take a large stake in the nation's oil fields.
Venezuela currently produces about 1.16 million barrels per day, according to a Bloomberg survey, and is not subject to an active OPEC quota.
For President Trump, a U.S.-Venezuela energy alliance could prove very valuable by weakening OPEC, increasing non-Middle Eastern crude supplies, pressuring oil prices and locking down a massive reserve base in America's backyard.
Trump Close To 'Massive' Deal For Seizing Stake In Venezuela's Vast Oil FieldsAmid ongoing global oil supply disruptions due to the Iran war and Hormuz Strait crisis, and also as Ukraine's war on Russian oil refineries and export terminals heats up, the Trump administration has been scrambling to tap new reliable and long-term energy sources.
Now, nearly eight months since the US miliary raid on Caracas which removed from power and captured socialist President Nicolás Maduro, and the Trump administration is said to be on the brink of a massive deal to gain ownership stake in the countries vast oil resources.
Axios is newly reporting Thursday of 'negotiations' (sure) in the works: "The historic deal would more than double U.S. oil reserves by drawing from a country that has the world's largest proven reserves."
Back in February: Venezuelan acting President Delcy Rodriguez greets US Energy Secretary Chris Wright at Miraflores presidential palace in Caracas, via APThe report cites one official as saying that "Calling this deal huge would be an understatement" as is is "massive."
The wars in Iran and Ukraine, and especially the race to reopen Hormuz to international crude transit, have added heightened urgency to the talks - and given the US Strategic Petroleum Reserve has reached a 40-year low.
Over a dozen productive oil fields are said be central to the "talks", with Trump officials hoping for a quick breakthrough after long hyping Trump's "Donroe Doctrine" and what it can do to bolster American energy independence and security. Of course, instead of 'talks' or 'negotiations'... in reality this is more simply about hammering out details on what orders will be dictated to the 'new' post-Maduro US client state in South America.
Axios details further of what's at stake in the deliberations with Caracas:
But this latter note remains the big question and risk, in terms of a potentially long timeline before the new potential Venezuelan oil flows make a noticeable difference.
Though sitting atop the world's biggest proven oil reserves, Venezuela has long been known for its derelict and largely defunct infrastructure for getting crude out of the ground and refining. There's also the question of security, which has been a source of discussion between the US admin and American oil companies being courted.
The oil majors must be convinced that they can operate in enough safety to be successful, not just for the coming months, but for years down the line. But if a broad and major 'deal' is struck with Caracas, these issues will probably look minor.
There are also lingering transparency and accountability questions concerning the Venezuelan oil exports that Washington already took over since Maduro's ouster. This summer, the Council on Foreign Relations asked 'where has all the money gone?'...
In the first four months of the United States exerting control over Venezuela’s oil exports, almost one hundred million barrels of oil worth an estimated $8 billion have flowed through a process marked by no transparency and minimal oversight. While the Trump administration has repeatedly framed this control as benefiting both countries, it has not publicly disclosed how much Venezuelan oil it has sold, how much revenue it has collected, or how it has used those funds since seizing control of the country’s oil exports following the January 3 military intervention that deposed Venezuelan leader Nicolás Maduro.
The CFR also wrote:
The Trump administration has shared some details with Congress. Secretary of State Marco Rubio testified in January that $300 million had flowed through a “short-term” account in Qatar and been disbursed to Venezuela, while another $200 million was “still sitting” in the account. He indicated the administration would conduct a retroactive audit on the funds that moved through the Qatar account. The following month, Secretary of Energy Chris Wright said during a press interview that the full $500 million had been transferred to Venezuela and that the administration would use U.S. Treasury accounts going forward.
But the administration has yet to provide a public accounting of the Qatar account, including how the funds were spent or what safeguards were in place to prevent corruption and money laundering. In April, a State Department witness told Congress that the department had authorized the disbursement of about $3 billion to Venezuela, but the witness did not know how much money remained in the U.S. Treasury accounts. It is not clear if the balance in either the Qatar or U.S. Treasury accounts has been shared with Congress.
The last public update was shared by President Trump to reporters in late July. He indicated the US has collected more than $13 billion from the sale of Venezuelan crude.
″$13 billion from Venezuela? I think even more than that,” the president previously told reporters, and boasted that "We’ve paid for that war many times over."
With both the Venezuelan oil export control scheme and this new plan for US companies to move in based on a grand deal, the White House is touting that this is all about securing America's energy future.
But as for the Venezuelan people's future...
🇻🇪 Washington Is Making Venezuela Pay for Its Own Occupation — 32% of Oil Revenue
The U.S. invasion has turned Venezuela’s oil industry into a revenue stream for Washington. Economist Francisco Rodríguez says the Trump administration has charged Venezuela $4.7 billion, or 32%… pic.twitter.com/3jwxLHLWZe
"President Trump is close to securing America's energy future for generations to come, not just in the U.S. but in the hemisphere," an official said to Axios.
As a reminder Venezuela's interim president Delcy Rodríguez was previously Maduro's Vice President, and so the chavista socialism system is still actually in place, even if the new ruling regime is in reality now a puppet of Washington interests.
While President Trump initially declared that Washington would effectively "run" Venezuela, he later had openly endorsed Rodríguez as a temporary caretaker during the transition, despite her being as hardcore a Leftist pro-Maduro figure as anyone.
Among the first US actions with a compliant Rodríguez at the helm in Caracas was to cut off Venezuela's oil supply to nearby ally Cuba. So ultimately, an eventual grand deal for American companies to take over Venezuelan oil fields should come as no surprise to anyone paying attention to what Washington's real long-running regime changes aims in Venezuela were all about. In the meantime Western MSM outlets like Axios still pretend in their framing of these developments that the US is at the helm of some kind of "rules-based order".
Tyler Durden Fri, 08/28/2026 - 19:43