US slaps sanctions on Iran airlines, service providers

On Tuesday, the United States imposed sanctions on all remaining Iranian airlines and related service providers, intensifying economic pressure on Tehran in its ongoing conflict with Washington. The US Treasury Department targeted 36 entities for their support of Iran's aviation sector, which the regime utilizes to transport weapons, personnel, and illicit goods. These targets encompass 27 Iranian airlines, along with entities in nations like the United Arab Emirates, Turkiye, Malaysia, and Kazakhstan.

According to a US Treasury official, the move effectively severs the entire aviation sector of the Iranian economy from the global market. The sanctions come amid Iran's war with the United States since late February, following US-Israeli strikes that killed Iran's supreme leader and senior military officials. In retaliation, Iran blocked the Strait of Hormuz, driving up global oil prices and escalating the conflict in the Middle East.

US Treasury Secretary Scott Bessent vowed an "economic D-Day" against Iran, aiming to choke the regime financially. Under Operation Economic Outcast, anyone doing business with Iran's remaining airlines risks being cut off from the global financial system. The Treasury Department also targeted third-country firms facilitating Mahan Air's proliferation activities, linked to the Islamic Revolutionary Guard Corps (IRGC) and the facilitation of US-sanctioned Mahan Air's operations.

Furthermore, the sanctions extend to cargo service providers and general sales agents that have serviced Mahan Air's international flights. While the official did not disclose potential secondary sanctions for Chinese firms, multiple actions are available to US authorities against service providers. The Treasury Department previously imposed sanctions in July on individuals and companies aiding Mahan Air.