U.S. sanctions Iranian airlines in aim to tighten economic squeeze as war spreads, oil rises

The Treasury Department on Tuesday sanctioned 27 Iranian airlines and a handful of other entities as part of its ongoing effort to isolate Iran’s economy.

The move comes as Tehran and its proxies continue to launch attacks in the Strait of Hormuz and the surrounding region, further entangling other countries in the U.S.’s more-than-six-month war and placing more pressure on global energy prices.

The latest U.S. action under “Operation Economic Outcast” targets all Iranian airlines that were not already facing sanctions.

“Let this be a warning to anyone doing business with Iran’s remaining airlines, all of which we sanctioned today: You are at risk of being cut off from the global financial system,” Treasury Secretary Scott Bessent said in a statement.