US Treasury Secretary Scott Bessent announced on Saturday that efforts to economically isolate Iran are showing positive outcomes. He revealed that teams were dispatched globally to engage with countries and demand action against the Iranian regime. These efforts have led to several countries taking steps to restrict Iranian airlines and banks. Bessent highlighted the success of Operation Economic Outcast, which aims to pressure Iran through targeted financial measures.
Turkey and Oman have halted incoming flights from private carrier Mahan Air, while the United Arab Emirates has stopped all flights by Iranian airlines. Dubai, the UAE's commercial hub, is a major destination for Iran's carriers, with multiple daily flights, a large Iranian community, and close business links. The restrictions are part of a broader effort to limit Iran's economic activities.
According to Iran's ISNA news agency, five countries have revoked the Islamic Republic's flight permits: Azerbaijan, Georgia, Iraq, Oman, and the UAE. However, flights are still operating to China and Russia via the two main airlines, national carrier Iran Air and Mahan. Mahan had announced that it would no longer serve Turkey at the request of the Turkish authorities, but flights continue several times a day in both directions.
Bessent had previously stated that all Iranian airlines "will be shut down around the world". He also highlighted new banking restrictions, including the UAE central bank blocking transactions to and from Iran by branches of Iran's Bank Melli. The bank was accused of violating laws on money laundering, terrorism, and arms proliferation.
Last week, Turkey revoked the license of Iran's Bank Mellat, a semi-private financial entity that has been subject to Western sanctions for years. The US Treasury has held discussions with more than 50 countries to push for the imposition of economic restrictions on Iran. Jonathan Burke, the Treasury's assistant secretary for terrorist financing, traveled across the Middle East and Europe to promote the plan.
The restrictions are part of a broader effort to pressure Iran into changing its behavior. The US Treasury has imposed targeted financial measures against banks and aviation service providers. Bessent noted that the efforts are delivering results, with several countries taking steps to restrict Iranian airlines and banks.
The economic isolation of Iran is having significant impacts on the country's economy. Hundreds of trucks are jammed at the Turkey-Iran border crossing as the US blockade pushes trade overland. The restrictions are also affecting Iran's ability to access international financial systems.
Key points
- The US Treasury has held discussions with more than 50 countries to push for the imposition of economic restrictions on Iran.
- Turkey and Oman have halted incoming flights from private carrier Mahan Air.
- The UAE central bank has blocked transactions to and from Iran by branches of Iran's Bank Melli.
