Treasury targets Iran airlines as US steps up economic pressure campaign

The US has placed sanctions on 27 Iranian commercial airlines as President Donald Trump's administration seeks to crank up its economic pressure campaign against Tehran. The airlines were among 36 targets the US named in sanctions on Tuesday over links to Iran's aviation sector, which Tehran uses to move weapons, personnel and illicit cargo. The Treasury's Financial Crimes Enforcement Network also issued an alert requesting financial institutions to report procurement networks supporting Iran's aviation industry. Additionally, the US said it is targeting third-country companies that facilitate Mahan Air, a previously sanctioned Iranian airline accused of transporting personnel, drones and weapons to support Iran's military. The Treasury Department is also suspending the ability of non-US airlines to fly US-origin or US-controlled aircraft into Iran. In July, the Treasury Department issued sanctions on individuals and firms in China, India, Russia and Iran over their affiliations with Mahan Air's alleged ties to the Islamic Revolutionary Guard Corps. The European Union blacklisted the Iranian airline in 2024 for allegedly sending drones to Russia. 'Today, we followed through on that promise with sanctions on companies that continue to support Mahan Air,' Treasury Secretary Scott Bessent said. Tuesday's moves are the latest in the Treasury Department's most recent economic pressure campaign to bring Iran to the negotiating table, after military operations and a naval blockade failed to deliver a durable ceasefire and reopen the Strait of Hormuz. The aviation industry was one of five sectors the Treasury has accused Tehran of using to prop up its economy, as well as the digital assets, gold, shipping and technology sectors. 'Let this be a warning to anyone doing business with Iran's remaining airlines, all of which we sanctioned today: 'you are at risk of being cut off from the global financial system,'' Mr Bessent said. Last week, he said the US was looking to target airline-leasing companies as well as digital assets, in addition to Iran-linked banks. The Treasury Department has warned institutions and countries that continue to support Iran's regime will lose access to the US dollar-backed financial system. The Treasury last week imposed sanctions on a Turkish bank and its subsidiaries over its alleged ties to the IRGC's Quds Force. Washington accused Golden Global Yatirim Bankasi Anonim Sirketi (Golden Global Bank) of being established to enable Iran's shadow banking network to transfer oil revenue from China to Turkey, where it could be converted into cash and gold. The US also placed sanctions on the Egyptian Banque Misr's branch in the UAE that would cut off its access to the dollar following accusations it processed about $1.8 billion in transactions to Iran. The UAE Central Bank said on August 30 it will conduct a 'special and urgent examination' into the branches' activities.