Washington plans to isolate Iranian airlines "around the world"

U.S. Treasury Secretary Scott Bessent told CNBC on Monday: “All Iranian airlines will be grounded worldwide.”

The measure is set to take effect on Wednesday and is primarily aimed at pressuring third countries.

He added: “If they land, you cannot refuel them, you cannot provide landing services, and you cannot sell them tickets, otherwise you will be cut off from the dollar system.”

About two weeks ago, the United States imposed new, comprehensive sanctions on Iran’s aviation sector, covering 27 airlines. Foreign companies and banks also face consequences if they continue to deal with the sanctioned airlines.

Bessent said the U.S. government has held closed-door talks on further isolating Iran’s aviation sector, adding that China has shown cooperation in this regard. Chinese President Xi Jinping is expected to arrive in Washington on Wednesday.

Mahan Air, Iran’s newest private airline, announced last Wednesday that it would no longer operate flights to Turkey or Oman. The airline did not cite an official reason for the decision.

However, there were significant concerns that other airlines could soon be affected as well.

In addition to Dubai, Istanbul is one of the key hubs for many travelers to Iran. Since the outbreak of war in Iran in late February, international airlines have been avoiding flights to Iran.