US Sanctions All Iranian Airlines, Targets Mahan Air’s Aircraft Supply Network

The United States has imposed new sanctions on Iran’s aviation sector, targeting 27 Iranian airlines and overseas companies accused of helping Tehran access aircraft, aviation services and sensitive technology as Washington intensifies economic pressure on Iran.

The US Treasury Department announced 36 Iran-related sanctions on Tuesday, including measures aimed at grounding Mahan Air and extending sanctions to all other Iranian airlines. According to Reuters, the action also targets covert front companies, cargo handlers, foreign intermediaries and deceptive trans-shipment routes that Washington says Iran relies on to obtain US-origin aircraft and sensitive technology. Mahan Air was already under sanctions from both the United States and the European Union.

US targets aviation procurement networks

The Treasury Department instructed financial institutions to report procurement networks supporting Iran’s aviation industry. It also designated firms in Turkey, the United Arab Emirates, Malaysia and Kazakhstan that it said had helped Iranian airlines operate and assisted Tehran in acquiring US-origin aircraft and sensitive technology.

The Treasury’s Office of Foreign Assets Control (OFAC) separately suspended three Iran-related aviation authorisations. The authorisations had allowed overflights and permitted non-US airlines to operate US-origin or US-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 affect air traffic from Dubai, Doha and Istanbul, shutting Tehran’s main gateways to regional trade and finance. He also said OFAC’s action closed previous carve-outs that had allowed the transport of safety parts, fuel and emergency repairs.

Tuesday’s measures are part of the Trump administration’s renewed efforts to squeeze Iran’s economy and pressure Tehran to loosen its chokehold on the Strait of Hormuz. A US naval blockade and tougher sanctions are curbing Iran’s oil exports, restricting its access to foreign currency and exposing growing strains in the economy.

The Treasury said foreign firms or individuals assisting Iranian airlines through aircraft transfers, cargo services or general sales agent support would face serious consequences.

27 Iranian airlines among those sanctioned

Treasury Secretary Scott Bessent warned last week that airlines could be among the next targets for sanctions, alongside 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. The department said the entities had helped Mahan Air secure at least three Boeing B-777 aircraft during the summer after the planes had been retired elsewhere.

It also sanctioned Ibrahim Ali Mohamed Mohamed Mahran, an Egyptian citizen based in the UAE who is the chief executive of ECT Aviation Support, along with the British unit of the company.

OFAC imposed additional sanctions on two firms based in Turkey and Malaysia. Treasury said the companies had serviced Mahan Air’s international flights and coordinated cargo shipments.

Continued pressure on Mahan Air

Reuters reported that the United States has repeatedly targeted international networks accused of 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 Air in 2011 over support it provided to Iran’s Islamic Revolutionary Guard Corps. In 2020, the United States imposed sanctions on a China-based company it accused of acting on behalf of Mahan Air.

Reuters reported that the latest measures extend sanctions beyond Mahan Air to Iran’s other airlines, as well as companies involved in cargo services, aircraft transfers and procurement networks.

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.”