US Treasury sanctions 27 Iranian airlines in sweeping ‘Operation Economic Outcast’

The US Treasury Department just dropped what amounts to a sledgehammer on Iran’s airline industry. On September 8, the Office of Foreign Assets Control sanctioned 27 Iranian airlines and nine related entities in a coordinated campaign it’s calling “Operation Economic Outcast.” The action extends sanctions to every remaining active Iranian airline under Executive Order 13902, with OFAC citing their role in transporting weapons and personnel for the Islamic Revolutionary Guard Corps. What the sanctions actually do The designations target carriers that had managed to maintain at least some international connectivity, including Qeshm Air and Varesh Airlines, both of which operated limited flights to Gulf states. Three aviation authorizations were suspended as part of the action. Those suspensions affect overflight permissions and operations involving US-origin aircraft into Iran. Treasury Secretary Scott Bessent warned that entities that continue engaging with Iran’s airline sector risk losing access to the global financial system. OFAC also issued alerts to financial institutions about procurement networks that Iranian airlines have used to acquire aircraft. The investigation identifi...