US sanctions all remaining Iranian airlines in bid to squeeze Tehran as tensions rise over Hormuz

WASHINGTON: The United States has sanctioned all 27 of Iran’s remaining airlines, escalating a campaign to cut Tehran off from international finance, aviation and trade as the war and economic confrontation enter a critical phase.

The Treasury Department announced Tuesday that it was sanctioning 36 targets tied to Iran’s aviation sector under Operation Economic Outcast, including 27 Iranian airlines and companies and intermediaries in several countries.

The measures target what US officials describe as networks used by Iran to move weapons, personnel and illicit cargo, as well as intermediaries that help Iranian airlines obtain US-origin aircraft, spare parts and sensitive aviation technology.

Treasury Secretary Scott Bessent warned companies doing business with the sanctioned airlines that they risk being cut off from the U.S. financial system.

The action effectively targets the remaining parts of Iran’s commercial aviation sector that had not previously been sanctioned, potentially making it significantly harder for Iranian carriers to access international banking, aircraft parts, maintenance services and other supplies.

The United States has singled out Mahan Air for years over its alleged support for Iran’s Islamic Revolutionary Guard Corps, including the transport of personnel and weapons.

Treasury said foreign companies had helped Mahan obtain aircraft and aviation services despite existing sanctions.

Iranian Foreign Minister Abbas Araghchi has dismissed Washington’s sanctions strategy as ineffective, arguing that decades of economic pressure have failed to force Tehran to abandon its policies.

The latest measures come as Iran is already under severe economic pressure. The country is facing shortages of foreign currency, rising prices and disruptions to oil exports as the United States intensifies its economic campaign and seeks to force Tehran to ease restrictions on shipping through the Strait of Hormuz.

For Washington, the aviation sanctions are another attempt to close the remaining channels through which Iran can access the global economy. For Tehran, they add pressure to an economy already strained by sanctions, war and restrictions on oil exports.

The immediate impact could extend beyond Iran’s military and state-linked networks.

Sanctions on airlines and aviation suppliers can also make civilian air travel, aircraft maintenance and the procurement of spare parts more difficult, potentially worsening an aviation sector that has struggled for years under US sanctions.

The move also raises the stakes around the Strait of Hormuz. Iranian officials have continued to threaten tighter restrictions on shipping while the United States seeks to restore freer passage through the strategic waterway.