US expands sanctions on Iran's aviation sector under Operation Economic Outcast

The United States has announced a new package of sanctions targeting Iran's aviation sector, in a move aimed at increasing economic pressure on Tehran. The Treasury Department said on Tuesday that 36 Iran-related sanctions were imposed on commercial and private airlines, as well as on aviation firms and service providers. The measures are part of an effort described by Washington as Operation Economic Outcast.

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The latest action expands existing sanctions on the privately owned airline Mahan Air and extends pressure to other Iran-based aviation companies. Treasury Secretary Scott Bessent said the administration had promised severe consequences for those providing financial support to the Iranian government. He said the new measures were intended to warn anyone doing business with Iran's remaining airlines that they risk being cut off from the global financial system.

Mahan Air has been under US sanctions since 2011, when Washington accused it of supporting the Islamic Revolutionary Guard Corps. The new package comes as the Trump administration seeks to intensify pressure on Iran after returning to office in 2025. The row also follows a broader period of confrontation between the United States, Israel and Iran, with fighting continuing and no clear end in sight.

The aviation sector is significant because it can provide access to aircraft, parts, maintenance and financial services that are difficult to replace once sanctions are imposed. By targeting airlines and related firms, Washington is seeking to limit the operational capacity of entities it says support the Iranian state. The measures also reflect a wider strategy of using financial restrictions to isolate Iran from international markets.

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The announcement comes against the backdrop of years of heavy economic restrictions on Iran and repeated US efforts to tighten enforcement. The Treasury's language suggests the administration wants to deter third parties from helping sanctioned Iranian carriers continue operating. Iran has rejected the approach, with Foreign Minister Abbas Araghchi criticising Washington's response as more sanctions after failing to achieve its aims through sanctions or war.

What remains unclear is how widely the new measures will affect Iran's aviation links and whether they will prompt further retaliation or diplomatic pushback. It is also not yet clear which specific airlines, companies or service providers are included in the latest round beyond the broad Treasury description. The next developments to watch are any Iranian response, any additional US enforcement steps, and whether the sanctions alter the operating environment for Iran's remaining carriers.

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