The United States has put forward a new package of sanctions targeting Iran’s aviation sector, as the administration of President Donald Trump seeks to ratchet up economic pressure on Tehran. On Tuesday, the US Treasury Department announced 36 Iran-related sanctions on commercial and private airlines, part of an effort to isolate Iran dubbed “Operation Economic Outcast”. The penalties expand existing sanctions on the privately owned Iranian airline Mahan Air, while targeting other Iran-based aviation companies, as well as firms that provide them with services. “Under Operation Economic Outcast, we promised severe consequences for those providing financial lifelines to the Iranian regime,” US Treasury Secretary Scott Bessent said. “Today, we followed through on that promise with sanctions on companies that continue to support Mahan Air. 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.” Iran has been subject to years of heavy economic restrictions, and Mahan Air has been under sanctions as far back as 2011, when the US government accused it of supporting the Islamic Revolutionary Guard Corps (IRGC).
But since Trump returned to office for a second term in 2025, he has sought to heighten pressure on the Iranian government. On February 28, the US and Israel launched a war against Iran that hit its six-month mark in August. With the war grinding on without a conclusion in sight, Trump last month announced a series of measures designed to further squeeze the Iranian economy. He likened the actions to an “economic D-Day”, referencing one of the turning points in World War II.
Bessent said the project would amount to the “toughest sanctions in history“. Still, the fighting has continued. As recently as Tuesday, the US struck Iranian tankers, while Iran launched attacks on US military forces in Jordan. “After failing to achieve its aims through sanctions or war, Washington’s ‘novel’ solution is… more sanctions. Seriously?” Iranian Foreign Minister Abbas Araghchi wrote in a social media post on Tuesday.
One of the enduring sticking points in the conflict has been the Strait of Hormuz, a key conduit in the global fossil fuel trade. At the outset of the war, Iran restricted passage through the strait, causing fuel prices to surge in the US and globally. The Trump administration in turn announced its own naval blockade and enhanced sanctions against Iran in an effort to sever its economic lifelines. In addition to Mahan Air, the US has accused foreign companies in countries such as Turkiye, the United Arab Emirates, Kazakhstan and Malaysia of providing Iranian airline companies with parts and logistics services.
Washington has previously accused Mahan Air of ferrying weapons and support to armed groups allied with Tehran in countries such as Lebanon and Yemen. The sanctions extend to countries and companies that do business with the restricted entities, along with freezing any assets they have under US jurisdiction.
