US Sanctions 27 Iranian Airlines Amid Ongoing Conflict Over Strait of Hormuz

The US Treasury Department has widened its pressure on Iran by sanctioning 27 Iranian airlines as part of 'Operation Economic Outcast'. The move aims to squeeze Iran out of the global financial system. Treasury Secretary Scott Bessent warned that anyone still doing business with these airlines is at risk of being cut off from the global financial system.

The sanctions push on Aug. 24, dubbed 'Iran's Economic D-Day', initially issued more warnings than actual penalties. However, the US has since targeted several related entities and other countries' banks for their ties to Tehran. This includes Turkey's 35th-largest bank, according to TheBanks.eu.

The sanctions on Iranian airlines come as oil prices surge above $99 a barrel due to the ongoing conflict around the Strait of Hormuz. Brent crude moved above $99, while West Texas Intermediate gained almost 2% at the session high. The iShares Global Energy ETF (NYSEARCA: IXC) and State Street's SPDR S&P Oil & Gas Exploration & Production ETF (NYSEARCA: XOP) also hit their highest levels since November 2001 and June 2015, respectively.