US sanctions Iranian airlines and service providers

The United States has targeted what it calls the remaining Iranian aviation sector with a new round of sanctions. The Treasury Department said Tuesday that the measures cover 36 targets supporting Iran’s aviation industry, including 27 Iranian airlines and companies based in the United Arab Emirates, Turkey, Malaysia and Kazakhstan.

“Essentially, we’re taking the entire aviation sector of the Iranian economy out of the market,” a U.S. Treasury official told reporters on condition of anonymity. The department said the sector helps Iran move weapons, personnel and illicit cargo.

The action also targets third-country firms that facilitate Mahan Air’s proliferation activity, terrorist-linked flight operations and the illicit procurement of U.S.-origin aircraft. Cargo service providers and general sales agents that have handled Mahan Air’s international flights are included as well. Washington accuses Mahan Air of facilitating activities by Iran’s Islamic Revolutionary Guard Corps.

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Essentially, we’re taking the entire aviation sector of the Iranian economy out of the market.

Treasury Secretary Scott Bessent said the measures formed part of “Operation Economic Outcast.” “Under Operation Economic Outcast, we promised severe consequences for those providing financial lifelines to the Iranian regime,” he said in a statement. Bessent warned that companies doing business with Iran’s remaining airlines risked being cut off from the global financial system.

The sanctions come as the United States and Iran remain at war following U.S.-Israeli strikes in late February that, according to the article, killed Iran’s supreme leader and senior military officials. Tehran retaliated by blocking the Strait of Hormuz, sending global oil prices higher as the conflict spread across the Middle East. The Treasury official did not say whether companies in countries such as China could face secondary sanctions, but said Washington had various measures available against service providers. The department also sanctioned individuals and companies in July over assistance to Mahan Air.

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Under Operation Economic Outcast, we promised severe consequences for those providing financial lifelines to the Iranian regime.