Iraq suspends Iranian flights to Baghdad

Iraq's civil aviation authority has been directed to halt Iranian flights to Baghdad airport starting from Wednesday, according to two unnamed sources who spoke to Reuters. The move comes after the United States threatened to impose sanctions on any airport that allows Iranian airlines to operate. US Treasury Secretary Scott Bessent announced on Monday that all Iranian airlines would be barred starting from September 23, citing the risk of secondary sanctions against air service providers.

The Iraqi government is reportedly considering diverting Iranian Airways flights from Baghdad to Najaf airport to mitigate the impact of the suspension. Two sources familiar with the matter told Reuters that the decision to suspend flights will come into effect at midnight on Wednesday. Iranian news agency Tasnim reported that flights from Tehran to Baghdad and Muscat have already been canceled starting from Wednesday, with all remaining international flights, including Istanbul, set to proceed as scheduled.

However, Iranian travelers are currently being denied entry at the airport in Oman, and discussions regarding this matter are ongoing, as per a spokesperson for Iran's Civil Aviation Organization. Bessent further explained to CNBC that airports cannot provide fuel, landing services, or sell tickets to Iranian airlines, else they would be excluded from the dollar system.