US Sanctions All Remaining Iranian Airlines in Major Aviation Crackdown

The United States has imposed sanctions on all of Iran's remaining active airlines, dramatically expanding pressure on the country's aviation sector as Washington seeks to restrict Tehran's access to international trade and finance.

The US Treasury Department announced the measures on September 8, targeting 36 entities and individuals, including 27 Iranian airlines and a number of foreign companies accused of helping Iran's aviation networks obtain aircraft, spare parts and other technology.

The action marks the first use of a new determination issued on August 24 specifically targeting Iran's aviation sector. US officials say Iranian airlines are being used by the government to transport weapons, personnel and illicit cargo.

Treasury Secretary Scott Bessent warned companies and financial institutions that continue dealing with the sanctioned carriers that they could face exclusion from the international financial system.

"We will not relent in our campaign to shut down the Iranian regime's financial lifelines, including the aviation sector," State Department spokesperson Tommy Pigott said.

The sanctions form part of President Donald Trump's wider campaign, known as Operation Economic Outcast, which was announced by Bessent on August 24. The initiative is intended to target what Washington describes as the Iranian government's remaining economic lifelines.

Among the airlines designated are Iran Aseman Airlines, Iran Airtour, Kish Airlines, Qeshm Air, Karun Airlines, Sepehran Airlines, Taban Airlines, Varesh Airlines, Zagros Airlines, Chabahar Airlines, Fly Persia and Saha Airlines, which is formally known as the Armed Forces Air Transport Service.

Other carriers included in the sanctions are Air Shiraz, Ava Airlines, Fly Kish, Mehr Airways, Raimon Airways and Soroush Air.

Iran had not issued an immediate public response to the latest measures.

Foreign Companies Also Targeted

The Treasury action extends beyond Iranian airlines, targeting foreign companies accused of helping Mahan Air obtain aircraft and maintain international operations.

Mahan Air has been under US counterterrorism sanctions since 2011. Washington accuses the airline of providing logistical support to Iran's Islamic Revolutionary Guards Corps, including by transporting personnel, weapons and military equipment.

According to the Treasury, Mahan Air obtained at least three Boeing 777 aircraft during the summer of 2026 through arrangements involving the United Arab Emirates and Oman.

US officials identified UAE-based ECT Aviation Support and Turkey-based Sky Phoenix as intermediaries in an alleged scheme to transfer US-origin aircraft to Mahan Air.

ECT Aviation Support owner and chief executive Mahran Ibrahim Ali Mohamed Mahran, an Egyptian national, was also sanctioned.

Other foreign companies targeted include Malaysia-based iCargo, Kazakhstan-based Tour Invest and Turkish firms MES Cargo and S Sistem Logistics. Treasury accused the companies of providing sales, cargo, logistics and other services to Mahan Air.

US officials also accused S Sistem of coordinating shipments of unmanned aerial vehicle components and industrial equipment bound for Iran. iCargo was accused of arranging shipments of US-origin aircraft parts to Iran on behalf of Mahan Air.

Potential Impact on Global Aviation

Kerri Bitsoff, a former senior Treasury official, said the measures could have far-reaching consequences because of the industry's dependence on US-origin aircraft, engines, avionics and other technology.

She said Treasury had now designated every remaining Iranian airline while withdrawing authorisations that had allowed foreign carriers to operate US-origin aircraft in Iran.

Bitsoff argued that the measures could affect a substantial portion of international aviation because of the widespread use of US-controlled engines and avionics.

She also said air links remained one of Iran's important connections to the international economy and accused Tehran of using aviation networks to move gold, hard currency, IRGC personnel, weapons, aircraft parts and dual-use components.

The latest sanctions come as Washington increases pressure on Iran through multiple economic channels. Bitsoff said maritime routes were being restricted, European governments were supporting the pressure campaign and several Persian Gulf countries were reducing trade with Tehran.

The new designations could place additional pressure on fuel suppliers, ground handlers, banks and other companies that continue to provide services to Iranian airlines.

Restrictions on Foreign Carriers

Treasury also suspended three Iran-related aviation authorisations, including permissions involving overflights and the operation of US-origin or US-controlled commercial aircraft in Iran by non-US airlines.

Requests involving aviation safety will continue to be considered individually, the department said.

Brett Erickson, a sanctions specialist at Obsidian Risk Advisors, described the measures as a major escalation of Washington's campaign against Tehran.

He said the United States was combining sanctions with broader efforts to restrict Iran's access to alternative economic routes, making it more difficult for the country to move goods and sustain international commercial activity.

The Treasury warned that foreign companies and individuals facilitating transactions involving sanctioned Iranian airlines could face severe penalties, including secondary sanctions that could limit their access to the US financial system.

US persons are generally prohibited from conducting transactions involving the blocked entities. Foreign financial institutions can also face restrictions on their US correspondent or payable-through accounts when involved in certain significant transactions with sanctioned parties.

Warning Over Procurement Networks

Alongside the sanctions, the Treasury's Financial Crimes Enforcement Network, known as FinCEN, issued an alert urging financial institutions to monitor Iranian procurement networks seeking aircraft and aircraft components through front companies and intermediaries in third countries.

US authorities said Iranian airlines have used companies presented as aviation, technology and logistics businesses across Europe, the Middle East, Africa and Asia to acquire Western aircraft, components and dual-use goods while concealing the ultimate Iranian recipients.

The latest action represents a significant expansion of Washington's campaign. Rather than focusing solely on individual airlines and support companies, the sanctions now target much of the commercial aviation infrastructure connected to Iran.

The measures are expected to increase the risks for foreign businesses that continue providing Tehran with aircraft, spare parts, cargo handling, sales representation, logistics services or financial support.