UAE Grounds All Iranian Flights Following Strict New US Sanctions and Regulatory Crackdown

The UAE has officially suspended all flights operated by Iranian airlines to and from the country until further notice. According to the General Civil Aviation Authority, the decision took effect on Thursday in compliance with a US ban that prohibits Iranian airlines from operating at airports worldwide.

US Treasury Secretary Scott Bessent warned on Monday that secondary sanctions would be imposed on global air services providers dealing with Iranian airlines, forming part of a broader economic pressure campaign on Tehran. Speaking to CNBC, Mr Bessent stated that servicing Iranian airlines—such as providing fuel, landing services, or selling tickets—would result in companies being locked out of the dollar system.

The GCAA announced it would keep relevant authorities and the public informed regarding future updates, depending on geopolitical and regulatory developments. No specific timeline or conditions were provided for the eventual lifting of the suspension.

This travel restriction follows an announcement on Tuesday by the UAE Central Bank barring Bank Melli Iran from conducting financial transactions between its UAE branches and Iran. Investigations revealed that the Tehran-based lender, which is the country's biggest lender with eight branches in the UAE including a regional office, failed to comply with anti-money laundering regulations.

The Central Bank stated that all branches of Bank Melli Iran operating in the UAE are prohibited from conducting financial transactions to and from Iran, which includes trade finance and fund transfers. The developments also build upon last month's decision by the UAE to suspend all trade, commercial exchange, and financial transactions with Iran due to regional threats stemming from attacks on UAE-owned tankers and Tehran's rejection of talks with the US.