US Reports Progress in Efforts to Isolate Iran's Airlines and Banks

US Treasury Secretary Scott Bessent announced that the United States' campaign to economically isolate Iran is yielding results, as more countries impose restrictions on Iranian airlines and banks. Bessent wrote on X that, under his direction, teams were dispatched worldwide to urge other nations to take action against Iran.

According to Bessent, Turkey and Oman have halted incoming flights from the Iranian private airline Mahan Air. In addition, the United Arab Emirates has suspended all Iranian airline flights, a significant step given the strong commercial ties and large Iranian community in the UAE.

Further banking restrictions have also been reported. On Wednesday, the UAE central bank barred the branches of Bank Melli Iran from conducting financial transactions to and from Iran, including trade finance and fund transfers. The actions were reportedly linked to breaches of UAE regulations related to anti-money laundering and counter-terrorism financing.

Last week, Turkish authorities revoked Bank Mellat's operating license in Istanbul, citing risks to depositor rights and financial system stability. This move occurred amid increasing US pressure for countries to impose tighter financial controls on Iran.

These measures are part of 'Operation Economic Outcast,' an initiative launched by the US Treasury in August to curtail Iran’s access to international financial and commercial markets. The campaign includes secondary sanctions targeting foreign entities engaging in business with Iran.

On September 8, the US Treasury sanctioned 36 entities connected to Iran's aviation sector, encompassing 27 Iranian airlines and foreign firms accused of supporting Iran's aviation network. According to Washington, these networks help transport weapons, personnel, and illicit goods.

Despite these efforts, some Iranian airlines continue limited international services, including flights to China. China has so far not participated in the campaign to restrict Iranian aviation, even as flight suspensions by other countries have significantly reduced Iran's regional air connections.