US Treasury Secretary Scott Bessent has warned of additional sanctions against "both Iranian airlines" as part of Washington's ongoing "Economic Fury" campaign against Tehran. He stated on X (formerly Twitter) that the US plans to shut down these airlines' access to landing spots, refueling, and ticket sales. While Bessent did not specify which airlines, ch-aviation data indicates 31 active airlines in Iran, with Mahan Air, IranAir, and ATA Airlines (Iran) being the largest by aircraft count. Both Mahan Air and IranAir are already designated by the US Office of Foreign Assets Control (OFAC), which prohibits US entities from transactions with them. Despite existing sanctions severely restricting their access to aircraft, foreign technology, booking systems, and payment services, these airlines have generally continued international flights to select countries.
The new sanctions leverage sectoral determinations under Executive Order 13902, which OFAC applied to Iran's aviation sector on August 24, 2026. This allows OFAC to sanction any person, regardless of location, operating within this sector. This framework extends potential exposure to foreign brokers, parts suppliers, maintenance providers, insurers, and sales agents outside Iran, shifting the compliance burden onto counterparties. Treasury officials indicated that Iran uses commercial airlines, many controlled by the regime and the Islamic Revolutionary Guard Corps (IRGC), to transport fighters, weapons, sensitive technology, gold, and cash to proxies. This broader approach contrasts with previous sanctions that targeted only specific named entities.
Treasury Secretary Bessent, in an interview on Fox News and during a Group of 20 finance ministers meeting, had previously identified airlines and aircraft leasing companies as potential targets. He also mentioned that sanctions against a bank were likely to be announced. The August 24, 2026, sectoral determinations were part of "Operation Economic Outcast," also covering Iran's digital asset, technology, gold, and shipping sectors. The immediate focus for observers will be the promised bank sanctions, which would be the first concrete action under this new framework, followed by decisions on how narrowly or broadly to apply sanctions to airlines or lessors, impacting due-diligence obligations across the broader leasing and services market. President Donald Trump is also reportedly calling world leaders with "specific requests to cease their interactions with the regime," threatening economic punishment against countries doing business with Iran.
