US Treasury says Iranian airlines will be shut down globally from September 23

US Treasury Secretary Scott Bessent announced a global shutdown of all Iranian airlines starting September 23, 2026, by threatening secondary sanctions against foreign airports and fuel suppliers. Under the measures, any foreign business providing fuel, ticketing, or landing services to Iranian carriers will be barred from the US dollar system. In response, Iran canceled flights to Baghdad and Muscat, while negotiating reroutes. Concurrently, the G7 condemned Houthi rebel attacks, and the UK committed air-to-air refueling support to Saudi Arabia.

US sanctions on Iranian airlines

• ▪United States Treasury Secretary Scott Bessent announced that all Iranian airlines will be shut down globally starting September 23, 2026
• ▪The United States Treasury Department expanded sanctions earlier in September 2026 to target additional Iranian airlines and foreign companies supporting Iran's aviation sector

Secondary sanctions enforcement mechanism

• ▪The United States Treasury Department threatens to exclude foreign companies from the United States dollar financial system if they provide fuel, landing services, or ticket sales to Iranian airlines
• ▪United States Treasury Secretary Scott Bessent held discussions with Chinese Vice Premier He Lifeng and People's Bank of China Governor Pan Gongsheng regarding compliance with United States sanctions targeting Iran

Iran flight cancellations

• ▪Flights from Iran to Baghdad, Iraq, and Muscat, Oman, were scheduled for cancellation starting at midnight on September 22, 2026, ahead of the implementation of United States aviation sanctions
• ▪Iran's Civil Aviation Organization initiated negotiations with Iraqi officials to redirect scheduled flights from Baghdad to Najaf Airport in Iraq

Aviation service provider restrictions

• ▪The broader United States sanctions regime against Iran targets multiple sectors of the Iranian economy, including energy, shipping, technology, gold, and digital assets
• ▪Aviation analysts stated that targeting local refueling and ground-handling providers effectively cuts off essential operational support for Iranian carriers, despite the United States lacking authority to close foreign airspace

G7 condemnation of Houthi attacks

• ▪The G7 group of nations condemned continued military strikes by Iran-backed Houthi rebels against Yemen and Saudi Arabia, calling for an end to attacks on civilian shipping
• ▪British Prime Minister Andy Burnham announced that the Royal Air Force will provide air-to-air refueling support to Saudi Arabian military planes for a period of several weeks

Debatable claims

• ▪Foreign companies that enable sanctioned Iranian airlines to operate should face U.S. secondary sanctions
• ▪China should comply with US secondary sanctions targeting Iran