Politics & Policy

US Treasury Secretary Scott Bessent announced that all Iranian airlines will be effectively shut down globally starting September 23, 2026. The administration is implementing severe secondary sanctions against any foreign entity that provides fuel, landing services, or ticket sales to Iranian carriers, threatening immediate exclusion from the US dollar clearing system. This measure aims to isolate Tehran's civil aviation network amid an ongoing state of war between the United States and Iran that began in late February following US-Israeli strikes. The directive has already triggered immediate operational changes, with Iraq suspending flights by Iranian airlines and Georgia barring Iranian carriers from its airspace. Additionally, Mahan Air suspended services to Turkey at the request of the Turkish government. These actions follow earlier US sanctions targeting remaining Iranian airlines and external firms supporting the sector, part of a broader strategy described as "economic D-Day" to choke off financial support for Tehran. Bessent emphasized that Washington is actively engaging with international partners to ensure compliance, specifically noting discussions with Chinese Vice Premier He Lifeng and People's Bank of China Governor Pan Gongsheng. These diplomatic efforts precede President Donald Trump's summit with Chinese leader Xi Jinping scheduled for September 24. The sanctions occur while global oil prices remain volatile due to Iran's blockade of the Strait of Hormuz, a critical energy transit route blocked in retaliation for the initial military offensive