US Treasury Secretary Scott Bessent warned on Monday that Iranian airlines will have trouble functioning globally in two days under the weight of American sanctions. The Trump administration seeks to keep pressure on Tehran. Bessent told CNBC that all Iranian airlines will be shut down around the world by September 23. He explained that if they land, they cannot be provided with fuel, landing services, or sold tickets without facing consequences.
The sanctions imposed by the US have restricted Iran's aviation sector from acquiring aircraft, spare parts, and maintenance services. Earlier this month, the US imposed sanctions on all remaining Iranian airlines that had yet to face such penalties. The Treasury Department also targeted firms supporting Iran's aviation sector, including those based outside Iran. This move is part of the US efforts to choke off Tehran financially.
The conflict between the US and Iran has been ongoing since 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. The US has been imposing sanctions on various Iranian entities, including a Turkish bank allegedly serving as a critical financial lifeline for Iran.
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 chief previously vowed to declare "economic D-Day" on Iran and pledged to choke off Tehran financially.
The Iranian aviation sector has long grappled with sanctions, which have restricted its ability to acquire aircraft, spare parts, and maintenance services. The new sanctions will further exacerbate these challenges. According to Bessent, if Iranian airlines land, they cannot be provided with fuel, landing services, or sold tickets without facing consequences, effectively shutting them down.
The US actions have had significant economic impacts on Iran, including a decline in the value of the Iranian rial currency. The US has also imposed sanctions on other entities, including a Turkish bank, alleging it serves as a critical financial lifeline for Iran. The US aims to keep pressure on Tehran through these economic measures.
The situation remains tense, with the US and Iran engaged in a conflict that has spread to the Middle East. Egypt and other countries are pushing for de-escalation and a settlement. The US Treasury chief's warning highlights the ongoing efforts to restrict Iran's global access and put pressure on the Iranian economy.
Key points
- US Treasury Secretary Scott Bessent warned that Iranian airlines will face global shutdown by September 23 due to American sanctions.
- The US has imposed sanctions on all remaining Iranian airlines and targeted firms supporting Iran's aviation sector.
- The conflict between the US and Iran has had significant economic and global impacts, including a decline in the value of the Iranian rial currency and a surge in global oil prices.
