US widens Iran sanctions to airlines and overseas firms

The United States imposed sanctions on 27 Iranian airlines on Tuesday (September 8), part of a 36-target package aimed at restricting Iran’s aviation industry and increasing economic pressure on Tehran.

The US Treasury Department said the measures were intended to ground Mahan Air, already subject to US and European Union sanctions, while extending restrictions to all remaining Iranian airlines.

Treasury Secretary Scott Bessent warned businesses dealing with those carriers that they could lose access to international finance. “You are at risk of being cut off from the global financial system,” he said.

The action expands the Trump administration’s campaign to squeeze Iran’s economy and pressure Tehran to loosen its control over the Strait of Hormuz, with the Middle East war now in its seventh month.

Aircraft suppliers and cargo firms targeted

The sanctions extend to companies in Turkey, the United Arab Emirates, Malaysia and Kazakhstan that Treasury accused of helping Iranian airlines operate and obtain US-origin aircraft and sensitive technology. Washington said Iran relied on front companies, cargo handlers, foreign intermediaries and deceptive transshipment routes to secure that equipment.

Treasury accused businesses in Turkey and the United Arab Emirates of helping Mahan Air acquire at least three Boeing 777 aircraft during summer 2026. The aircraft had previously been retired from other fleets.

Those sanctioned include Ibrahim Ali Mohamed Mohamed Mahran, an Egyptian citizen based in the United Arab Emirates and chief executive of ECT Aviation Support. The company’s British unit was also designated.

Two of the targeted firms, based in Turkey and Malaysia, were accused of servicing Mahan Air’s international flights and coordinating cargo shipments.

Treasury warned that foreign companies and individuals assisting sanctioned Iranian airlines would face serious consequences, whether through aircraft transfers, cargo services or support as general sales agents.

The department also issued an alert asking financial institutions to identify and report procurement networks supporting Iran’s aviation industry.

Overflight and aircraft permissions suspended

Treasury’s Office of Foreign Assets Control (OFAC) also suspended three Iran-related aviation authorisations. These included permissions for overflights and for non-US airlines to fly US-origin or US-controlled commercial aircraft into Iran.

Miad Maleki, a former senior Treasury official and fellow at the Foundation for Defense of Democracies, said the suspension would affect air traffic from Dubai, Doha and Istanbul, cutting off Tehran’s main gateways to regional trade and finance.

Maleki added that the action removed previous exemptions covering safety parts, fuel and emergency repairs. Treasury said, however, that OFAC would still consider aviation-safety requests individually.

Warning of consequences for civilian travel and trade

Brett Erickson, managing principal of Obsidian Risk Advisors, described the measures as a significant expansion of economic warfare. He warned of consequences for civilian travel, commerce, supply chains and Iran’s ability to sustain its already strained economy.

“The United States is using sanctions to effectively blockade Iran’s aviation sector from the rest of the world,” he said.