Iran suspends flights to Baghdad, Muscat, Azerbaijan amid new US sanctions

Iranian flights to Baghdad, Muscat, and Azerbaijan have been suspended following the imposition of new U.S. sanctions. These sanctions represent an escalation in the ongoing U.S.–Iran confrontation, targeting Iran’s aviation sector by warning foreign airports and service providers of potential penalties for handling Iranian airlines. The suspension of these routes further tightens regional airspace restrictions, affecting key transit and destination points. This development suggests an immediate impact on international air access, as the sanctions go beyond financial measures to directly influence flight operations. Key Takeaways The suspension of flights to Baghdad, Muscat, and Azerbaijan appears consistent with increasing airspace restrictions, aligning with U.S. sanctions. Market pricing suggests a higher likelihood of a full Iranian airspace closure by December 31, with current odds reflecting a 24.5% YES scenario. Recent market activity indicates a shift in expectations, with a notable decrease in short-term odds for a September 30 closure. What to Watch Developments involving the Civil Aviation Organization of Iran and any official NOTAMs regarding airspace status will be cri...