US Treasury Secretary Scott Besent announced that the United States will ban Iranian airlines from operating outside of Iran starting next Wednesday. This move comes as part of the US efforts to increase pressure on Iran through sanctions. Besent stated that any foreign airlines, airports, or aviation service providers that continue to offer services to Iranian carriers will face secondary sanctions.
The announcement was made in an interview with CNBC, where Besent explained that Iranian airlines will struggle to continue operations globally from next Wednesday. He warned that any entity providing fuel, landing, or ticketing services to Iranian airlines may be cut off from the US dollar-based financial system. This move is an escalation of US sanctions on Iran's aviation sector.
The US Treasury Department recently expanded sanctions on Iran's aviation sector, targeting 36 entities, including 27 Iranian airlines. The department stated that all remaining Iranian airlines are now subject to US sanctions. The measures also targeted companies and intermediaries in third countries that provide services or facilitate Iranian airlines' access to restricted US technologies and aircraft components.
The US actions have included suspending certain licenses related to Iran's aviation sector, such as permits for overflights of Iranian airspace and some flights to Iran using US-made or controlled aircraft. The Treasury Department issued a temporary license allowing certain transactions to be completed until September 23.
The new measures aim to pressure foreign companies that do business with Iranian airlines. The Treasury Department warned that providing services such as aircraft maintenance, shipping, or sales support could lead to penalties. Besent mentioned that Chinese financial officials are engaged in discussions with the US regarding compliance with Iranian sanctions.
The impact of the new sanctions on Iranian airlines' operations will depend on the level of compliance from foreign airports, service providers, and financial institutions. The US is focusing on disrupting the international network of services that Iranian airlines rely on to operate, rather than just targeting the airlines themselves.
The US move is part of a broader effort to increase pressure on Iran through economic sanctions. The effectiveness of these measures will be closely watched, particularly in light of recent diplomatic efforts between the US and China on issues related to Iranian sanctions.
Key points
- US Treasury Secretary Scott Besent announced a global ban on Iranian airlines operating outside of Iran, effective next Wednesday.
- The ban is part of an expansion of US sanctions on Iran's aviation sector, targeting 36 entities, including 27 Iranian airlines.
- Foreign companies providing services to Iranian airlines may face secondary sanctions, including being cut off from the US dollar-based financial system.
