US Treasury Secretary Scott Bessent has warned that Iranian airlines will have trouble functioning globally in two days under the weight of American sanctions. In an interview with CNBC, Bessent stated that all Iranian airlines will be shut down around the world by September 23. This move is part of the Trump administration's intensified pressure on Tehran.
The US Treasury's announcement comes as the war launched by the United States and Israel nears the seven-month mark. Bessent explained that if Iranian airlines land, they cannot be provided with fuel, landing services, or sold tickets, or the parties involved will be knocked out of the dollar system. This follows earlier US sanctions on Iran's aviation industry and Bessent's threat to choke off Tehran financially.
The impact of the US Treasury's announcement is already being felt. Two Iraqi sources reported that Baghdad would suspend flights by Iranian airlines following the announcement. Additionally, Georgia barred Iranian carriers from its land, while Iranian airline Mahan said it suspended service to Turkey at the request of the Turkish government.
The conflict between the United States and Iran began in late February, when US-Israeli strikes killed the Islamic republic's supreme leader and senior military officials. Tehran countered by blocking the Strait of Hormuz, a vital waterway for energy transit, causing global oil prices to surge. Since then, some travel has resumed, but only for flights run by Iranian carriers.
The US Treasury Department has taken aim at targets supporting Iran's aviation sector, including firms based outside Iran. Earlier this month, the United States imposed sanctions on all remaining Iranian airlines that had yet to face such penalties. Iran's air space was completely shut after the US-Israel alliance launched attacks in late February.
Iran's aviation sector has long grappled with sanctions, which have restricted its ability to acquire aircraft, spare parts, and maintenance services. Bessent's comments came a day after he met with Chinese Vice Premier He Lifeng for economic talks laying the groundwork for President Donald Trump's summit with Chinese leader Xi Jinping. China is one of Iran's top economic partners and diplomatic backers.
The US Treasury's move is part of a broader effort to intensify pressure on Tehran. The Trump administration's actions have significant implications for Iran's economy and its ability to engage in global trade. The impact of these sanctions will likely be closely watched in the coming days as the situation continues to unfold.
Key points
- US Treasury Secretary Scott Bessent warns Iranian airlines will face global shutdown by September 23 due to American sanctions.
- The move is part of the Trump administration's intensified pressure on Tehran.
- Iran's aviation sector has long grappled with sanctions, restricting its ability to acquire aircraft, spare parts, and maintenance services.
