US threatens to ground all Iranian airlines worldwide starting Wednesday
What's the story
The United States has warned that all Iranian airlines could be grounded globally from Wednesday. United States Treasury Secretary Scott Bessent told CNBC on Monday that the warning is not just for the airlines but also extends to airports, fuel suppliers, ticketing companies, and other businesses associated with them. "On September 23, all the Iranian airlines will be shut down around the world," Bessent said.
Sanctions impact
Bessent's warning on foreign companies servicing Iranian airlines
Bessent warned that foreign companies servicing Iranian airlines risk being cut off from the US dollar system.
"If they land, you cannot provide them with fuel, you cannot provide them with landing services, you cannot sell them tickets, or you will be knocked out of the dollar system," he said.
This is part of a larger sanctions regime aimed at isolating Iran from international financial systems.
Sanctions expansion
US sanctions target Iran's aviation industry
Earlier this month, the US Treasury had sanctioned all remaining Iranian airlines and foreign firms allegedly supporting Iran's aviation sector.
The aviation industry in Iran has already been under severe restrictions due to years of US sanctions, making it hard for carriers to acquire new aircraft and spare parts.
US secondary sanctions threaten foreign companies that do business with Iran across sectors lik energy, shipping, technology, gold and digital assets, with penalties of their own.
International response
US sanctions ripple effect
The US sanctions have already had a ripple effect beyond Iran.
Two Iraqi sources confirmed to AFP that Baghdad would suspend flights by Iranian airlines following the US Treasury announcement.
Georgia has also barred Iranian carriers from its territory, while Mahan suspended services to Turkey at the request of the Turkish government.
Diplomatic discussions
Meeting with Chinese Vice Premier
Bessent's warning comes after he met Chinese Vice Premier He Lifeng on Sunday.
The meeting precedes a scheduled meeting between President Trump and Chinese President Xi Jinping.
China is one of Iran's major economic partners and diplomatic supporters, making Beijing's cooperation potentially significant to Washington's efforts to financially isolate Tehran.
Bessent said Chinese officials had been "very engaged" in the US pressure campaign against Iran.