US Treasury Secretary Scott Bessent warned on Monday that Iranian airlines will have trouble functioning globally starting on Wednesday under the weight of American sanctions, as the Trump administration intensifies pressure on Tehran.

On September 23 "all the Iranian airlines will be shut down around the world," Bessent told CNBC in an interview as the war launched by the United States and Israel nears the seven-month mark.

"If they land, you cannot provide them with fuel, you cannot provide them with landing services, you cannot sell them tickets or you will be knocked out of the dollar system," he added.

The move follows earlier US sanctions on Iran's aviation industry and Bessent's "economic D-Day" threat on Iran and pledge to choke off Tehran financially.

Two Iraqi sources said on Monday that Baghdad would suspend flights by Iranian airlines following the US Treasury's announcement.

Also on Monday, Georgia barred Iranian carriers from its land, while Iranian airline Mahan said it suspended service to Turkey at the request of the Turkish government.

The United States and Iran have been at war since late February, when US-Israeli strikes killed the Islamic republic's supreme leader and senior military officials at the start of a broad offensive.

Tehran countered by blocking the Strait of Hormuz, a vital waterway for energy transit, causing global oil prices to surge as the conflict spread in the Middle East.

Earlier this month, the United States said it imposed sanctions on "all remaining Iranian airlines" that had yet to face such penalties.

The Treasury Department also took aim at targets for supporting Iran's aviation sector, including firms based outside Iran.

Iran's air space was completely shut after the US-Israel alliance launched attacks in late February. Since then, some travel has resumed but only for flights run by Iranian carriers.

Bessent's comments came a day after he met with Vice Premier He Lifeng for economic talks laying the groundwork for US President Donald Trump's summit this Thursday with President Xi Jinping.

Iran's aviation sector has long grappled with sanctions, which have restricted its ability to acquire aircraft, spare parts and maintenance services. (AFP)



Edited by Cecil Wong