US Slams Door on Iranian Airlines in Bid to Cripple Tehran's Economy

The US Treasury Department has taken another step in its effort to isolate Iran's economy by sanctioning 27 Iranian airlines and several other entities.

The move is part of 'Operation Economic Outcast', which aims to cut off Iran's economic lifelines. The sanctions target all Iranian airlines that were not already facing penalties, with Treasury Secretary Scott Bessent warning that anyone doing business with these airlines risks being cut off from the global financial system.

The latest action follows on-again, off-again hostilities between the US and Iran around the Strait of Hormuz, a vital path for oil trade. The strait has become a main chokepoint during the war, with Iran's ability to limit ship traffic contributing to rapidly rising oil prices.

Oil prices surged after the sanctions were announced, with Brent crude futures cresting above $99 per barrel and US West Texas Intermediate futures rising nearly 2% at session highs. The conflict is also threatening to expand beyond the strait, with Iran-backed Houthi militants in Yemen attacking multiple energy facilities in Saudi Arabia.