Trump administration hits Iran with sweeping sanctions on 36 targets over air network

The Trump administration said Tuesday (local time) it was sanctioning 36 individuals, companies and institutions, including 27 Iranian civilian airlines. The move is part of what it called a campaign of "economic isolation" against Iran.

The US Treasury Department's Office of Foreign Assets Control (OFAC) said that day it had "designated every remaining airline in Iran." The sanctions targeted 36 entities that support the aviation sector the Iranian regime uses "to transport weapons, personnel and illicit cargo," it added.

The sanctions list includes 27 Iranian civilian airlines along with companies in Turkey and Malaysia. According to OFAC, those companies helped Mahan Air acquire Boeing 777 aircraft by routing deals through third countries such as the UAE and Turkey. Others provided cargo transport services to Mahan Air, Iran's largest airline, which has been under US sanctions since 2019.

OFAC alleged that the 27 civilian airlines "have long supported the Iranian regime's destabilizing activities in the region." It said the Islamic Revolutionary Guard Corps has used ostensibly civilian carriers such as Mahan Air to procure weapons and move personnel.

The Treasury's Financial Crimes Enforcement Network (FinCEN) issued an alert that day calling on global financial institutions to report networks supporting Iran's aviation industry.

"We promised to make those who provide a financial lifeline to the Iranian regime pay a severe price," Treasury Secretary Scott Bessent said in a statement. "Today, we delivered on that promise through sanctions on companies that continue to support Mahan Air."

Bessent also warned of further sanctions, saying, "Today, we warn anyone doing business with any of the remaining Iranian airlines we sanctioned that you are at risk of being cut off from the global financial system."