US slaps sanctions on Iranian airlines, service providers

The United States has imposed sanctions on all remaining Iranian airlines that have not yet faced such penalties, as Washington seeks to intensify economic pressure on Tehran. The Treasury Department announced its latest action targets 36 entities for their role in supporting Iran's aviation sector, which is used to transport weapons, personnel, and illicit goods.

These targets include 27 Iranian airlines, along with businesses from countries like Malaysia, the UAE, Turkey, and Kazakhstan. The official stated that the entire aviation sector of Iran's economy is now isolated from the global market.

Tensions between the US and Iran escalated in late February following US-Israeli strikes that killed the supreme leader of Iran and senior military officials. This led to Iran's retaliation by blocking the Strait of Hormuz, causing global oil prices to rise and escalating the conflict in the Middle East. US Treasury Secretary Scott Bessent vowed an "economic D-Day" against Iran, aiming to cut off the regime financially.

Under Operation Economic Outcast, anyone doing business with Mahan Air is warned they will be cut off from the global financial system.

The sanctions target third-country firms that facilitate Mahan Air's proliferation activity, terrorist-linked flight operations, and illicit procurement of US-origin aircraft. Additionally, the Treasury Department is also targeting cargo service providers and general sales agents that have serviced Mahan Air's international flights. While the official did not specify if countries like China could face secondary sanctions, he hinted at various actions the US can take against service providers.

Iran's aviation sector has been severely impacted by sanctions, severely limiting its access to aircraft, spare parts, and maintenance services. The Treasury Department imposed sanctions on individuals and companies aiding Mahan Air in July.