US Targets Iranian Airlines in Broad Sanctions, Risking Global Disruption

Breaking the Back of Iranian Aviation

On September 23, Treasury Secretary Scott Bessent announced that all Iranian airlines would effectively be barred from international operations starting Wednesday. This isn't just a ban on flights; it's a coordinated effort to sever the entire aviation infrastructure supporting Iran's air carriers. Bessent emphasized that this was part of the broader "Operation Economic Outcast," aimed at weakening Tehran's already fragile economy.

"On September 23, all the Iranian airlines will be shut down around the world," Bessent said in a stark warning to global companies and governments. "If they land, you cannot provide them with fuel, you cannot provide them with landing services, you cannot sell them tickets or you will be knocked out of the dollar system."

The move represents a dramatic escalation in US policy, signaling a strategic shift from targeted penalties to an all-encompassing economic siege. It's not just about Iran's carriers—Washington is aiming at the entire global support network that keeps them airborne.

How It Works: A Systemic Sanction

The mechanism behind these sanctions isn't simple. While the US can't directly control airspace in foreign nations, it can pressure service providers within those countries to cut ties with Iranian carriers. Companies offering fuel, ground support, or ticketing services risk severe consequences if they continue assisting.

This is what Bessent referred to as being "knocked out of the dollar system." Any business that supports sanctioned Iranian airlines could be excluded from US financial channels, effectively cutting off their access to global commerce. For many international companies, this means a major financial and operational risk.

Iran's civil aviation sector is already under tremendous strain. Since 2015, decades of US-imposed sanctions have led to aging fleets, outdated technology, and severely limited maintenance capacity. Now, with these new measures in place, the entire infrastructure could collapse even further.

The Big Three: Iranian Airlines in Crisis

Iran's three main airlines—Mahan Air, Iran Air, and Qeshm Air—are already struggling to maintain operations. Mahan Air, the most internationally connected of the lot, was one of the first to suspend flights after the US imposed sanctions on 36 foreign companies for supporting Iranian aviation. Now, with full global sanctions in place, even that network is collapsing.

Mahan Air's routes span across Asia and the Middle East, connecting cities like Beijing, Shanghai, Dubai, and Phuket. But with the new measures, those flights are no longer viable without a major overhaul of their support systems.

Iran Air, the national flag carrier, once had extensive European routes that have been largely abandoned due to sanctions and war-related disruptions. As of now, its international operations are limited to flights to Najaf in Iraq, Baghdad, and Istanbul—hardly enough to sustain a major airline.

Qeshm Air, while smaller, still maintains a regional presence with destinations across the Middle East and Europe. But even this carrier is now operating under severe constraints, with increasing maintenance costs and lack of spare parts making operations increasingly risky.

Global Impact: Who's at Risk?

The implications of these sanctions extend far beyond Iran's borders. Countries with significant air traffic to and from Iran—like Turkey, Iraq, UAE, Pakistan, and China—are now faced with difficult decisions. These nations must weigh the economic fallout of supporting Iranian carriers against potential penalties from Washington.

In Turkey, for instance, Mahan Air had been a key player in connecting travelers between the two countries. With the airline's services suspended, Turkish airports like Istanbul may see an immediate loss in passenger traffic and revenue.

Similarly, Iraq, which has historically served as a vital gateway for Iranian travelers, is also at risk. Saj Ahmad, a senior aviation analyst, noted that Iraq might seek exemptions to maintain tourism-related flights from Iran. That's because tourism and related trade are major economic contributors in the region.

Meanwhile, China, a long-time supporter of Iran, has called the US sanctions "illegal" and is unlikely to comply. Beijing may continue providing financial and political support despite Washington's pressure. The same applies to Russia, which also has deep ties with Tehran.

For countries like the UAE, the decision isn't as clear-cut. While the UAE has recently announced it's halting trade with Iran, it still maintains some connections through its air carrier Etihad Airways. Whether this will lead to full compliance remains uncertain.

Iranian Travellers Caught in the Crossfire

The sanctions are already taking a toll on Iranian citizens who rely on air travel for business, family visits, or education. Nader Habibi, an Iranian-American economist, noted that airline prices have surged by as much as 100 percent in recent weeks.

"This rapid increase in costs is going to be a major burden for many travelers amid recent severe economic decline in Iran," he said. "Household income has declined up to 30 percent in recent months."

The financial strain is compounded by the devaluation of the Iranian rial, making international travel even more costly for average citizens.

Aviation consultant Mazen Sammak explained that many Iranians are already turning to alternative routes—by land or sea—to circumvent these restrictions. However, such options are not only time-consuming but also expensive, increasing the burden on already financially strained families.

For travelers who still want to reach Iran, there is little choice but to use regional hubs like Doha, Muscat, or Dubai for connections. But this creates a ripple effect that impacts neighboring economies, especially those reliant on transit traffic.

What About the Future?

The US has expanded its secondary sanctions into five new economic sectors: digital assets, gold, shipping, technology, and aviation. This signals a broadening of Washington's approach to isolating Iran across all industries.

In the short term, the sanctions could significantly reduce global air travel options for Iranian passengers and cause severe disruption in international hubs that rely on Iranian flights. The longer-term implications are even more worrying—further weakening of Iran's economy and potentially destabilizing the region.

Analysts suggest that unless there is a major shift in US policy, these sanctions could force many Iranian carriers to ground their operations entirely. With older planes, lack of spare parts, and reduced financial resources, the strain on the sector is already at breaking point.

The broader geopolitical implications are clear: Washington's strategy appears aimed not only at limiting Iran's influence but also at eroding its economic foundation. But what remains to be seen is whether the international community will accept this level of pressure or begin pushing back against the US-led sanctions regime.