Iran air links face wider disruption as countries suspend flights under U.S. sanctions threat

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Iran flight disruptions US sanctions

Highlights

Iraq, Oman, and Azerbaijan halt or restrict flights with Iran following U.S. Treasury Secretary Scott Bessent's warning that Iranian airlines could face global shutdowns from Wednesday.
Mahan Air suspends flights to Istanbul, Ankara, and Muscat, while Georgia and Turkey cut flight connections and revoke Bank Mellat’s licence amid increasing U.S. sanction pressure.
Half of Iran’s roughly 250 civilian aircraft are grounded due to sanctions and conflict damage, with critical regional air links and trade now at heightened risk.

Regional suspensions widen pressure on Iran aviation

As first reported by Financial Times, Iraq, Oman and Azerbaijan are among the countries halting or restricting air links with Iran after U.S. Treasury Secretary Scott Bessent warned that Iranian airlines could be shut down globally from Wednesday.

Oman and Azerbaijan stop Iranian airlines from operating flights to their countries, while Iraq bans flights to Baghdad in response to U.S. sanctions on services provided to Iran’s aviation sector. Mahan Air also suspends flights to and from Istanbul, Ankara and Muscat, and Georgia suspends commercial flights to Tbilisi.

Despite Bessent’s deadline, flights are still operating from Tehran’s main airport on Wednesday, including services to Istanbul and Dubai, according to Flightradar24 data. Arrivals also continue, including from Shanghai, but travel agents in Tehran say they cannot assure customers that key routes, especially to Istanbul, will remain available.

Majid Akhavan, spokesperson for Iran’s Civil Aviation Organisation, says authorities are in talks with Oman and Iraq to preserve services, including by redirecting Baghdad-bound flights to Najaf. Iranian media, however, speculate that flights to Najaf could also be suspended.

Trade, travel and regional business ties at risk

The latest measures add to a broader U.S. campaign to tighten economic pressure on Iran, with Washington this month sanctioning dozens of airlines and other targets it accuses of helping move weapons and personnel. The U.S. also warns that companies and individuals continuing to work with Iranian airlines risk losing access to the global financial system.

Foreign airlines have not resumed regular services since the war begins, and uncertainty is spreading across major regional hubs. Dubai remains important for Iranian business, although the United Arab Emirates suspends trade with Iran in August, and Iranian travel agents say only Emirati residence permit holders or dual nationals can currently fly there.

Turkey also faces pressure to align with U.S. sanctions. After Washington sanctions small Turkish bank Golden Global over alleged transfers linked to Iranian oil revenues, Turkish authorities revoke the licence of Iran’s Bank Mellat and bar Mahan Air from flying to Turkey amid concerns over sanctions exposure.

Galip Dalay, a senior research fellow at Chatham House, says Turkey is likely to comply with U.S. financial sanctions and extend them to airlines, though Ankara may still allow some exceptions on humanitarian grounds. The stakes are high for travel and commerce, as about 80,000 Iranians hold Turkish residence permits and more than 3 million Iranians visited Turkey last year, according to official data.

Iran’s aviation sector is already under heavy strain from decades of sanctions, under-investment and spare-parts shortages, with about half of the country’s roughly 250 civilian aircraft grounded, according to analysts. U.S. and Israeli bombing during the war also severely damages airports, aircraft and radar infrastructure, leaving passengers increasingly concerned that even the remaining international routes could disappear.

In our earlier article on oil prices falling as Saudi supply returned and U.S.-Iran diplomacy gathered pace, we outlined how renewed crude flows and hopes of de-escalation helped keep Brent below $100 a barrel. We also noted that traders were closely watching the Iran conflict’s impact on key routes and supply risks alongside other factors shaping market sentiment.

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