By Andrea Shalal and David Shepardson
WASHINGTON, Sept 8 (Reuters) - The United States on Tuesday issued 36 Iran-related sanctions targeting the country's aviation sector and other companies as part of a broad push to escalate economic pressure on Tehran as the war in the Middle East has moved into a seventh month.
The U.S. Treasury Department said the action was aimed at grounding Iran's Mahan Air, which was already sanctioned by the U.S. and the European Union, and expanding sanctions to all other
Iranian airlines. The sanctions also took aim at covert front companies, cargo handlers, foreign intermediaries and deceptive trans-shipment routes that Washington says Iran relies on to obtain U.S.-origin aircraft and sensitive technology.
The Treasury instructed financial institutions to report any procurement networks supporting Iran's aviation industry, while designating firms in Turkey, the United Arab Emirates, Malaysia and Kazakhstan that it said had helped Iran's airlines operate and Tehran acquire U.S.-origin aircraft and sensitive technology.
Treasury's Office of Foreign Assets Control also suspended three Iran-related aviation authorizations that allowed overflights and permitted non-U.S. airlines to fly U.S.-origin or U.S.-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 hit air traffic from Dubai, Doha and Istanbul, shutting Tehran's main gateways to regional trade and finance. OFAC's action also closes previous carve-outs that allowed transport of safety parts, fuel and emergency repairs, he said.
Tuesday's actions marked a sharp escalation of the Trump administration's renewed push to squeeze Iran's economy and pressure Tehran to loosen its chokehold on the Strait of Hormuz. A U.S. naval blockade and tougher sanctions are curbing Iran's oil exports, restricting access to foreign currency and exposing growing strains in the economy.
Treasury said any foreign firm or individual aiding Iranian airlines through aircraft transfers, cargo services or general sales agent support would face serious consequences.
CUTTING OFF FIRMS DOING BUSINESS WITH IRAN'S AIRLINES
Treasury Secretary Scott Bessent last week warned that airlines were possible sanctions targets along with digital assets and the maritime industry.
”Under Operation Economic Outcast, we promised severe consequences for those providing financial lifelines to the Iranian regime,” Bessent said in a statement on Tuesday. "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."
On Tuesday, Treasury designated 27 Iranian airlines, as well as several firms based in Turkey and the United Arab Emirates for helping Mahan Air secure at least three Boeing B-777 aircraft this summer that had been retired elsewhere.
It hit UAE-based Egyptian citizen Ibrahim Ali Mohamed Mohamed Mahran, the chief executive of ECT Aviation Support, as well as the British unit of the firm.
OFAC also imposed sanctions on two firms based in Turkey and Malaysia that it said had serviced Mahan Air's international flights and coordinated cargo shipments.
The U.S. Treasury has repeatedly targeted global networks supporting Mahan Air. In July, Treasury designated six entities and individuals in China, India, Russia and Iran, including several firms that act as sales agents for the airline. Washington first sanctioned Mahan in 2011 over support it provided to Iran's Islamic Revolutionary Guard Corps.
In 2020, Washington imposed sanctions on a China-based company it accused of acting on behalf of Mahan Air.
Brett Erickson, managing principal of Obsidian Risk Advisors, said the latest moves were significant.
“The United States is using sanctions to effectively blockade Iran’s aviation sector from the rest of the world," he said. "That represents a major expansion of the economic war, with foreseeable consequences for civilian travel, commerce, supply chains and Iran’s ability to sustain their strained economy.”
(Reporting by Andrea Shalal and David Shepardson, Additional reporting by Bhargav Acharya, Daphne Psaledakis and Susan Heavey; Writing by Andrea Shalal; Editing by Doina Chiacu, Michelle Nichols, Andrea Ricci and Cynthia Osterman)
