Aviation Crackdown: 27 Carriers on Ice

Airplane taxiing on runway with city skyline in background — Photo: Paparacy / Shutterstock

Every single Iranian airline will be locked out of the world’s financial system by September 23, the U.S. Treasury Secretary says, in one of the widest aviation sanctions actions ever aimed at Tehran.

Story Snapshot

Treasury Secretary Scott Bessent says all 27 remaining Iranian airlines face a global shutdown starting September 23.
The Treasury Department’s Office of Foreign Assets Control sanctioned 36 targets on September 8 under “Operation Economic Outcast.”
Officials say the goal is to stop Iran from using commercial planes to move weapons, fighters, and illegal cargo.
Iran’s Foreign Ministry calls the move “economic terrorism” and says it puts civilian air safety at risk.

Treasury Announces Deadline for Global Shutdown

Treasury Secretary Scott Bessent said Iranian airlines will be cut off from international operations starting September 23. The cutoff will come through secondary sanctions that target companies around the world that provide fuel, parts, or services to Iranian carriers. Bessent also said Chinese officials were “very engaged” in talks about the pressure campaign against Iran.

The deadline follows a major sanctions order issued on September 8. That day, the Treasury Department’s Office of Foreign Assets Control sanctioned 36 targets tied to Iran’s aviation industry. Officials said the sector helps the Iranian government “move weapons, personnel, and illicit cargo”. The action covered all 27 of Iran’s remaining commercial airlines, along with front companies accused of helping them dodge past sanctions.

Legal Basis Traces Back to August Ruling

The September action builds on a decision made weeks earlier. On August 24, the Treasury Department determined that Executive Order 13902 applies to Iran’s aviation sector. That order lets the U.S. government sanction whole industries it believes support Iran’s military or economic activity, not just individual companies or people. Legal analysts note this is the broadest use of aviation sanctions against Iran to date, hitting every remaining licensed carrier at once.

Treasury Secretary Bessent framed the sanctions as a direct threat to anyone doing business with Iran’s airlines. “Let this be a warning to anyone doing business with Iran’s remaining airlines, all of which we sanctioned today: You are at risk of being cut off from the global financial system,” he said in the agency’s press release. The warning targets banks, fuel suppliers, and aircraft lessors worldwide, not just Iranian companies themselves.

Iran Calls Sanctions “Economic Terrorism”

Iran’s Foreign Ministry pushed back hard. It called the sanctions an “unlawful and unilateral coercive” campaign against civilian aviation. The ministry said cutting off spare parts and repair services threatens the safety of passenger planes and restricts the movement of millions of ordinary Iranians. Tehran argued the sanctions violate international aviation rules under the Chicago Convention and amount to “collective punishment” of Iranian civilians.

This is not the first time Washington has grounded Iranian aviation. The U.S. has targeted Iran’s airlines off and on since the 1979 hostage crisis, with a more organized sanctions system starting in 2007. Iran Air itself was placed on the sanctions list years ago, along with dozens of its aircraft. Researchers say Iran has built workaround networks using front companies and third-country buyers to keep planes flying despite past restrictions.

Why the Pressure Works Beyond U.S. Borders

The real power of these sanctions comes from fear, not force. Banks, airports, and fuel companies around the world often avoid Iranian business entirely just to protect their access to U.S. dollars and markets. Analysts call this “secondary sanctions” pressure, and it can isolate a country’s entire industry even without direct enforcement overseas. That dynamic is why officials expect the September 23 deadline to hit Iranian aviation harder than past rounds of sanctions.

Whether the shutdown actually grounds every Iranian plane by September 23 remains to be seen, since enforcement depends on foreign companies choosing to comply. Still, the scale of this action, covering every licensed carrier and dozens of support companies, marks a clear escalation. For Americans watching from home, it’s another sign that the standoff with Iran keeps expanding into new corners of daily life, from oil markets to passenger travel.