US Treasury Threatens Secondary Sanctions to Ground Iranian Aviation Globally

US Treasury Secretary Scott Bessent announced on Monday that the US intends to impose secondary sanctions on global air services providers doing business with Iranian airlines, forming part of an escalating economic pressure campaign against Tehran. Speaking to CNBC following Sunday night talks with Chinese Vice Premier He Lifeng, Mr Bessent warned that all Iranian airlines would be shut down by September 23 due to the threat of these secondary sanctions.

He stated that when Iranian airlines land at an airport, providers cannot offer fuel or landing services, sell tickets, or risk being cut off from the dollar system. Furthermore, he noted that the US is engaging in positive discussions with Chinese financial authorities regarding compliance with these Iran sanctions.

Iran currently operates several international carriers, such as Iran Air, Mahan Air and Qeshm Air. However, Saj Ahmad, chief analyst at StrategicAero Research, noted that the overall impact may be limited given the small global footprint of Iranian airlines. He questioned whether airports would decline revenue and how such measures would be realistically policed and enforced.

Mr Ahmad emphasized the complexity of coordinating essential ground services like fuel, landing fees, parking, and cargo handling involving multiple companies. He pointed out that nations with strong ties to Iran, such as Pakistan and China, are unlikely to easily comply with these demands, making enforcement difficult.

This latest development is part of Operation Economic Outcast, an initiative aimed at severing global funding sources for Iran. Mr Bessent reiterated that the Treasury will continue targeting those offering material, technological, or financial support to the Iranian regime. While the global footprint is modest, analysts warn that these measures could still severely isolate Iran from standard air travel operations.