US Treasury Imposes Sweeping Sanctions on Iran's Aviation Sector

On Tuesday, the US Treasury Department issued 36 new Iran-related sanctions targeting the country's aviation sector and other companies, escalating economic pressure on Tehran as the Middle East conflict enters its seventh month. The measures aim to ground Mahan Air, already sanctioned by both the US and the European Union, along with all other Iranian airlines. The sanctions also target covert front companies, foreign intermediaries, and deceptive transshipment routes that Washington alleges Iran uses to acquire US-origin aircraft and sensitive technology. The Treasury issued an alert urging financial institutions to report procurement networks supporting Iran's aviation industry, and designated firms in Turkey and the United Arab Emirates for allegedly assisting Tehran in procuring such items. Additionally, the Office of Foreign Assets Control suspended three Iran-related aviation authorizations that had permitted overflights and allowed non-US airlines to operate US-origin or US-controlled commercial aircraft into Iran. Treasury Secretary Scott Bessent spoke at a press conference in Asheville, North Carolina, on September 1, though the statement did not detail his remarks. The actions represent a sharp escalation of the Trump administration's renewed campaign to squeeze Iran's economy and pressure Tehran to ease its control over the Strait of Hormuz.