U.S. Treasury Secretary Scott Bessent announced that all Iranian airlines will be grounded from Wednesday, September 23rd, by restricting their access to fuel, landing services, and ticket sales. This measure is part of a wider U.S. strategy to economically isolate Iran.
Separately, the G7 condemned attacks by Iranian-backed Houthi rebels on Saudi Arabia, while the UK announced it would support Saudi Arabia with air-to-air refueling for its planes.
US to Ground All Iranian Airlines: Treasury Secretary Announces Sweeping Sanctions
Washington D.C. - In a significant escalation of economic pressure, U.S. Treasury Secretary Scott Bessent announced Wednesday that all Iranian airlines will be effectively shut down, starting September 23rd. This move is part of a broader strategy to isolate Iran economically and curb its global influence.
How the Shutdown Will Work
Secretary Bessent explained the mechanism behind the shutdown: restricting Iranian airlines' access to critical international services. "How do we do that? That if they land, you cannot provide them with fuel. You cannot provide them with landing services, you cannot sell them tickets, or you will be knocked out of the dollar system," he stated during an interview on CNBC's "Squawk Box." This severe penalty aims to cripple the operational capacity of Iran's aviation sector by severing its ties to the global financial system.
Broader Sanctions Campaign
The Treasury Secretary emphasized that Washington is intensifying its pressure on Iran "like never before," targeting the country's financial enablers worldwide. This includes sanctioning banks and other entities that support Iran's operations. Recently, the Treasury imposed new sanctions on Russia's state-controlled VTB Bank as part of this broader effort to isolate Iran by targeting its business partners and financial facilitators.
G7 Condemns Houthi Attacks, UK Offers Support to Saudi Arabia
In a related development, the G7 nations have called for an end to the attacks by Iranian-backed Houthi rebels on Yemen and Saudi Arabia. In a joint statement on Monday, the bloc condemned the "unacceptable continued strikes" and urged the Houthis to cease all military actions, including attacks on civilian shipping. They also called on Iran to end its support for the rebel group.
The Houthis have claimed responsibility for recent attacks on "sensitive" sites in Riyadh, the Saudi capital, which resulted in visible flames and smoke near the city's airport. The rebels also recently seized Yemen's Perim Island on the Red Sea, strengthening their control over the Bab el-Mandeb Strait. This strategic move tightens Iran's and its proxies' grip on vital oil choke points, including the Strait of Hormuz and the Bab el-Mandeb Strait, which is a crucial alternative for oil exports bypassing the Strait of Hormuz.
The G7's condemnation follows reports that the United Kingdom will provide support to Saudi Arabia against the Houthi rebels. The Royal Air Force is reportedly set to offer air-to-air refueling for Saudi aircraft. British Prime Minister Andy Burnham stated that this arrangement would last for a few weeks and be subject to review, emphasizing the need to "secure the interests of Britain and the wider region" and keep oil pathways open amidst potential disruptions.
This move by the UK comes after U.S. President Donald Trump reportedly declined Riyadh's request for assistance against the rebels over the weekend, canceling a planned airstrike. NATO Secretary General Mark Rutte also indicated that European nations might offer support to Saudi Arabia, suggesting that discussions were underway among European allies to address the situation.
