Drive to isolate Iran delivering results as airlines, banks face new curbs: US Treasury

• US treasury in talks with more than 50 countries, WSJ reports.
• Bessent says all Iran airlines “will be shut down around world”.
• Iranian carriers continue some international flights despite sanctions.

US Treasury Secretary Scott Bessent said Saturday that Washington's campaign to economically isolate Iran was producing results, pointing to growing restrictions on Iranian airlines and banks in countries across the region.

“At my direction, teams were dispatched across the globe to engage with countries and demand action against the Iranian regime,” Bessent said on X. “These efforts are delivering results.”

Bessent said Turkey and Oman had halted incoming flights by Iranian private carrier Mahan Air, while the United Arab Emirates had suspended all flights operated by Iranian airlines.

The UAE is a major hub for Iranian carriers, with close commercial ties to Iran and a large Iranian expatriate community.

Bessent also pointed to measures targeting Iranian banks.

On Wednesday, the UAE central bank barred branches of Bank Melli Iran from conducting financial transactions to and from Iran, including trade finance and fund transfers. 

The regulator said the measures followed violations of UAE rules, including requirements related to combating money laundering, terrorism financing and proliferation financing.

Last week, Turkey revoked the operating licence of Bank Mellat's Istanbul branch. The decision followed growing US pressure on countries to tighten financial restrictions on Iran, although the Turkish order cited risks to depositor rights and financial system stability rather than US sanctions.

The moves are part of a broader US campaign launched by the Treasury in August under the name Operation Economic Outcast. 

Washington has described the initiative as an effort to cut off Iran's financial and commercial channels, including through secondary sanctions on foreign entities that continue doing business with Tehran.

On September 8, the Treasury sanctioned 36 targets linked to Iran's aviation sector, including 27 Iranian airlines and foreign companies accused of supporting the country's aviation networks. 

Washington says the networks are used to transport weapons, personnel and illicit cargo.

A Wall Street Journal report shared by Bessent said Jonathan Burke, the Treasury's assistant secretary for terrorist financing, had travelled across the Middle East and Europe over two weeks to press countries to implement what Bessent has called “economic D-Day” measures against Tehran.

The Journal reported that the Treasury had held discussions with more than 50 countries.

Bessent said on Monday that all Iranian airlines “will be shut down around the world”.

However, Iranian carriers have continued operating some international services despite the US pressure, including flights to destinations in China and elsewhere. 

Recent restrictions have sharply reduced Iran's regional air links, but they have not completely stopped international flights.

China has so far resisted joining the US campaign, while several countries have suspended or restricted Iranian airline services following Washington's sanctions and warnings over providing aviation services to sanctioned carriers.