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US Treasury Secretary Scott Bessent speaks to reporters in New York on September 20, 2026
Photo: AFP / Al Jazeera

Iran Airlines Face Shutdown as US Cuts 27 Carriers from Dollar System

U.S. Department of the Treasury3 min read6 sources

Why are Iranian airlines being shut down?

Iran's 27 airlines face a global grounding from Wednesday, Sept. 23, after Treasury Secretary Bessent warned any firm fueling or landing them would be knocked out of the dollar system.

Key numbers

Iranian airlines newly sanctioned (Sept 8)27 carrierscompletes blacklist of every active Iranian airline
Total OFAC targets in Sept 8 action36 entities27 airlines + 9 service providers
Iranian rial open-market rate (Sept 22)2.31M per dollar–50% vs dollar in 12 months
Iran domestic airline ticket price rise+100%some routes, past several weeks (per [2])
Iran inflation (IMF 2026 projection)68.9% annualamong world's highest rates
Operation Economic Outcast launched2026-08-24"Economic D-Day" per White House [1]

What happened

Iran's 27 airlines face a global grounding from Wednesday, Sept. 23, after Treasury Secretary Bessent warned any firm fueling or landing them would be knocked out of the dollar system. On September 8, the Treasury's Office of Foreign Assets Control sanctioned all 27 remaining active Iranian carriers — among them Zagros Airlines, Qeshm Air and Iran Aseman Airlines — plus nine foreign service providers, completing a full blacklist of every active Iranian airline, including previously-sanctioned Iran Air and Mahan Air. Speaking on CNBC on September 21, Bessent tightened the threat: "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". Turkish Airlines, Pegasus and AJet all pulled Iran routes that same day; Iraq moved to ban Iranian carriers; and Iran Air disputed the orders, insisting its flights to Istanbul, Baku and Najaf would continue.

Why it matters

The Iranian rial (IRR) has lost roughly half its value against the dollar in the past year and was trading at about 2.31 million rials per dollar on the open market on September 22, while domestic airline ticket prices have jumped as much as 100 percent in recent weeks. This matters because the US is weaponising its control over dollar-clearing infrastructure — not military force — as the enforcement mechanism, forcing every airport operator, fuel supplier and booking platform worldwide into a binary choice: cut ties with Iranian carriers or lose access to the global banking network that runs on dollars. That threat extends to China, Pakistan and Russia, which have historically ignored US pressure on Iran, making the test of this mechanism as consequential for the future of financial sanctions as for Iranian aviation itself.

Who this affects

Marketbearish
Medium impact
Dollar-system exile threat pressures any firm with Iran aviation exposure.
Companybearish
High impact
Iran's 27 carriers face complete international isolation from Wednesday.
Competitorsmixed
Medium impact
Turkish Airlines and Pegasus dropped Iran routes; regional hubs may gain redirected passengers.
Industrybearish
Medium impact
Secondary sanctions spread aviation compliance risk to fuel and ticketing sectors globally.

Iran Air vs Turkish Airlines, Mahan Air, Pegasus

Iran Air—State-owned (sanctioned pre-Sept 8)3 routes (claiming active)Exiled from Sept 23—
Mahan Air—Private (sanctioned pre-Sept 8)Turkey & Georgia haltedExiled from Sept 23—
Turkish AirlinesTHYAO.ISPublic, Borsa IstanbulSuspended Sept 21Safe — compliant$24B
Pegasus AirlinesPGSUS.ISPublic, Borsa IstanbulSuspended Sept 21Safe — compliant—

As of 2026-09-22

How we got here

  1. Operation Economic Outcast launched; rial hits 2.02M per dollar

  2. OFAC sanctions 27 remaining Iranian airlines and 9 service providers

  3. Rial reaches 2.36M per dollar in free market after airline sanctions

  4. Bessent's CNBC ultimatum; Turkish Airlines, Pegasus, AJet remove Iran routes

  5. Dollar-system exile deadline; Iraq moves to ban Iranian carriers from airports

What to watch

  • Whether China, Pakistan and Russia comply with secondary dollar-system sanctionsQ4 2026
  • Iran Air's disputed Istanbul, Baku and Najaf flights after Sept. 23 deadline2026-09-23
  • Iranian rial trajectory as dollar-ban enforcement begins in earnestQ4 2026

Educational content only. Not investment advice.

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