US Treasury slaps sanctions on Iranian airlines, accuses them of transporting arms

The United States imposed sanctions Tuesday on “all remaining Iranian airlines” that have yet to face such penalties, as Washington pushes to step up economic pressure in its war with Tehran. The US Treasury Department said its latest action takes aim at “36 targets for supporting Iran’s aviation sector, which the regime uses to move weapons, personnel, and illicit cargo.” These include 27 Iranian airlines, alongside firms based in countries such as the United Arab Emirates, Turkey, Malaysia and Kazakhstan. “Essentially, we’re taking the entire aviation sector of the Iranian economy out of the market,” a US Treasury official told reporters on condition of anonymity. Iran has been at war with the United States since late February, when US-Israeli strikes killed the Islamic Republic’s supreme leader and senior military officials at the start of a vast offensive that sought to destabilize the regime and destroy its nuclear program. Get The Times of Israel's Daily Edition by email and never miss our top stories Newsletter email address Get it By signing up, you agree to the terms The strikes sparked Tehran’s retaliation in blocking the Strait of Hormuz — causing global oil prices to surge — as the conflict spread in the Middle East. US Treasury Secretary Scott Bessent has vowed to bring “economic D-Day” on Iran and choke Tehran off financially. “Under Operation Economic Outcast, we promised severe consequences for those providing financial lifelines to the Iranian regime,” Bessent said Tuesday in a statement. Advertisement He warned that anyone doing business with Iran’s remaining airlines risks being cut off from the global financial system. US Treasury Secretary Scott Bessent speaks to reporters at the G20 Finance Ministerial in Asheville, North Carolina, September 1, 2026. (AP Photo/Gerald Herbert) Besides Iranian airlines, the Treasury Department said its latest actions target third-country firms that “facilitate US-sanctioned Mahan Air’s proliferation activity, terrorist-linked flight operations, and illicit procurement of US-origin aircraft.” It is also taking aim at “cargo service providers and general sales agents that have serviced Mahan Air’s international flights.” Mahan Air is an Iranian airline accused of facilitating activities by Tehran’s Islamic Revolutionary Guard Corps (IRGC). The US Treasury official did not specify if firms in countries like China might face secondary sanctions for supporting the Iranian aviation sector, but said there are various actions Washington can take on service providers. The Treasury Department slapped sanctions in July on individuals and companies it said were also aiding Mahan Air. 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