Treasury targets Iran airlines as US steps up economic pressure campaign

The United States has expanded its economic pressure campaign against Iran by imposing sanctions on 27 additional commercial airlines. President Donald Trump's administration aims to tighten its financial blockade on Tehran by targeting entities linked to Iran's aviation sector, which is often utilized for weapons transfers and illicit cargo transport. The Treasury Department's Financial Crimes Enforcement Network has also alerted financial institutions to monitor networks supporting Iran's aviation industry.

Furthermore, the U.S. is imposing sanctions on third-country companies that aid Mahan Air, an Iranian airline previously sanctioned for allegedly transporting personnel, drones, and weapons to bolster Iran's military. The Treasury Department is also halting non-US airlines from flying US-origin or US-controlled aircraft into Iran.

In July, the Treasury Department sanctioned individuals and firms in China, India, Russia, and Iran for their alleged connections to Mahan Air's ties with the Islamic Revolutionary Guard Corps. The European Union had already blacklisted the airline in 2024 for allegedly supplying drones to Russia.

Treasury Secretary Scott Bessent emphasized that these sanctions target companies perpetuating support for Mahan Air. The aviation sector is one of five targeted industries by the Treasury, along with digital assets, gold, shipping, and technology. Bessent warned that businesses dealing with Iran's remaining airlines will face exclusion from the global financial system.

Earlier, the U.S. had targeted a Turkish bank and its subsidiaries for alleged links to Iran's Quds Force. The U.S. also placed sanctions on Egypt's Banque Misr in the UAE, aiming to cut off its access to the dollar due to accusations of processing $1.8 billion in transactions to Iran. The UAE Central Bank announced it would conduct a special and urgent examination into the bank's activities.