US Hits Iran with Aviation Sanctions under 'Operation Economic Outcast'

The US Treasury has intensified pressure on Iran by imposing new sanctions on its aviation sector. On September 8, 2026, the Office of Foreign Assets Control (OFAC) designated 27 Iranian airlines and several foreign intermediaries accused of facilitating aircraft procurements and logistics for those carriers. This action falls under 'Operation Economic Outcast,' a comprehensive sanctions framework launched on August 24, 2026.

The 36 targets include airlines and their networks of companies that keep them flying. Among them is Mahan Air, which has been living under US sanctions since 2011 and was designated for counterterrorism purposes in 2019 due to its ties with the Islamic Revolutionary Guard Corps (IRGC). OFAC also suspended three aviation-related authorizations, affecting permissions for overflights of Iranian airspace and the operation of non-US airlines that use US-origin aircraft in Iran.

Treasury Secretary Scott Bessent stated that the measures aim to eliminate Iran's operational capabilities in aviation. The specific concern is that commercial airlines connected to the IRGC are being used to transfer weapons and personnel under the cover of civilian air travel.