US threatens sanctions against aviation service providers for Iran — The National
The United States has warned international aviation service providers of possible secondary sanctions for cooperation with Iranian airlines. US Treasury Secretary Scott Bessent said that companies providing Iranian carriers with fuel or airport services, or selling them tickets, could lose access to the dollar system.
As The National reports, Bessent told CNBC that the threat of secondary sanctions should lead to all Iranian airlines ceasing operations from September 23. He made the statement after talks with Chinese Vice Premier He Lifeng.
Services for airlines
According to Bessent, service providers will be prohibited from refueling Iranian aircraft, providing them with landing services and selling tickets, or they will risk being cut off from the dollar system.
Iran has several airlines operating international flights, including Iran Air, Mahan Air and Qeshm Air. At the same time, their presence in the global aviation market is limited.
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Possible consequences
Saj Ahmad, chief analyst at StrategicAero Research, believes that practical implementation of the US requirements will be difficult. He noted that key costs include fuel, landing and parking fees, as well as ground handling, including the supply of water, toilet servicing, cargo and passenger handling. Such services are usually provided by several different companies.
Ahmad also believes that Pakistan and China, which have close ties with Iran, are unlikely to readily agree to US demands. If the restrictions affect aviation services, this could complicate the operations of Iranian carriers and increase Iran's dependence on foreign airlines.
The statements were made as part of the US Operation Economic Outcast campaign, aimed at limiting Iran's sources of financing. Last month, the US Treasury Department also announced an expansion of its secondary sanctions campaign against institutions that continue to do business with Iran.
