US to ‘ground’ Iranian airlines worldwide from Wednesday

US Treasury Secretary Scott Bessent warned Monday that Iranian airlines will have trouble functioning globally in two days under the weight of American sanctions -- as the Trump administration seeks to keep pressure on Tehran.

On 23 September, "all the Iranian airlines will be shut down around the world," Bessent told CNBC in an interview.

"If they land, you cannot provide them with fuel, you cannot provide them with landing services, you cannot sell them tickets or you will be knocked out of the dollar system," he added.

After the US announcement, two Iraqi government sources told AFP that Baghdad would suspend flights by Iranian airlines.

"Iraq will enforce the ban on Iranian airlines in accordance with the US Treasury decision starting Tuesday at dawn," an official said, warning that "countries that do not implement the decision risk sanctions". Another source confirmed the account.

The United States and Iran have been at war since late February, when US-Israeli strikes killed the Islamic republic's supreme leader and senior military officials at the start of a broad offensive.

Tehran countered by blocking the Strait of Hormuz, a vital waterway for energy transit, causing global oil prices to surge as the conflict spread in the Middle East.

Earlier this month, the United States imposed sanctions on "all remaining Iranian airlines" that had yet to face such penalties.

The Treasury Department also took aim at targets for supporting Iran's aviation sector, including firms based outside Iran.

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Bessent previously vowed the United States would declare "economic D-Day" on Iran and pledged to choke off Tehran financially.

Bessent's comments came a day after he met with Chinese Vice Premier He Lifeng for economic talks laying the groundwork for President Donald Trump's summit this Thursday with Chinese leader Xi Jinping.

China is one of Iran's top economic partners and diplomatic backers.

Iran's aviation sector has long grappled with sanctions, which have restricted its ability to acquire aircraft, spare parts and maintenance services.