US Warns Airlines: Serve Iran, Lose Dollar Access

US Treasury Secretary Issues Warning to Airlines Over Iran Flights

US Treasury Secretary Scott Bessent has issued a strong warning to airlines and aviation businesses. He stated that any company continuing to serve Iranian carriers could lose access to the US dollar system. This announcement comes as flight suspensions and route changes are spreading across the region. Turkish Airlines, a major international carrier, has already halted all flights to Iran until at least March 2027, with the shutdown set to take effect on September 23.

The warning from Secretary Bessent is not limited to airlines. It extends to airports, fuel suppliers, ground handlers, and ticket sellers. These businesses risk facing US penalties if they continue to provide services to sanctioned Iranian airlines. Bessent emphasized that if these entities continue to support Iranian aircraft, they will be excluded from the dollar system. This action aims to put significant commercial pressure on the operations of Iranian airlines by impacting the businesses that enable their international flights.

Baghdad and Muscat Flight Suspensions Begin

Effective September 23, 2026, Iraq has implemented a suspension of Iranian flights to Baghdad. Additionally, flights from Tehran to Muscat have also been canceled starting at midnight local time on the same day. These closures affect two key destinations previously served from Iran. Majid Akhavan, a spokesperson for Iran’s Civil Aviation Organization, confirmed that Baghdad and Muscat airports will no longer accept Iranian flights.

Following this announcement, flights originally scheduled to land in Baghdad will be rerouted to Najaf airport. This development occurs as the US threatens sanctions against airports that continue to service Iranian carriers. While the operational picture is complex, with Iran’s own flight cancellations overlapping with Iraq’s suspension, the actions are being described as coming from different authorities.

European and Gulf Carriers Adjust Schedules

Several major European and Gulf carriers have also announced changes to their flight schedules concerning Iran. Lufthansa and Austrian Airlines have suspended their flights to and from Iran until at least October 24, 2026. Emirates has stopped its service to Tehran, while Qatar Airways has tied its suspension to ongoing airspace restrictions.

Qatar Airways has indicated November 29 as a potential date for resuming flights, though this is subject to change. These airlines have established different timelines for their service suspensions, rather than a unified restart schedule for the region. Turkish Airlines’ pause is the longest, extending at least until March 2027, placing it among the major carriers that have withdrawn service to Iran, even as the US warning targets a broader range of supporting businesses.

Disruptions Affect Georgia, Azerbaijan, and Turkey Routes

The impact of these changes is also being felt on routes to Georgia, Azerbaijan, and Turkey. Iranian carriers’ flights to Georgia ceased on September 21, two days before the stated global shutdown deadline. Flights to Azerbaijan have also been suspended with immediate effect.

Service between Iran and Turkey has seen disruptions as well, with Mahan Air suspending its Turkey flights at the request of the Turkish government. These changes add to the interruptions in Baghdad and Muscat, but the specific route picture varies depending on the airline and destination. The suspension of service by one airline does not necessarily mean all airlines have stopped flying a particular route.

Iranian Officials Report Continued Services

Despite the reported suspensions, Iran Air has stated that it has not received any official notification or instruction from the civil aviation authorities of Turkey, the Republic of Azerbaijan, or Iraq. This statement contrasts with reports of suspensions affecting those markets. Iranian authorities have also indicated that other international flights, including services to Istanbul, are expected to continue. This account exists alongside Turkish Airlines’ separate decision to suspend its own Iran flights through at least March 2027.

A travel agent in Tehran described a wider set of cancellations, noting that flights to Baghdad, Muscat, Qatar, Georgia, and Azerbaijan had been suspended. However, the agent also mentioned that routes to other destinations, such as China, remain available. These differing accounts suggest a fluid operational environment rather than a complete halt across Iran’s international network. Some carriers and routes have stopped, while officials and companies report that other services are still running.

US Warning Targets Supporting Businesses

Secretary Bessent’s warning specifically targets the essential services that enable an airline to operate internationally. This includes airport access, fuel provision, ground handling, and ticket sales. The threat signals that penalties could extend to companies operating outside of Iran, not just the airlines themselves. The announced deadline for these actions was September 23, 2026, yet some Iranian airlines were reportedly still operating certain international flights despite this date. Iran Air’s statement also highlights that formal instructions from individual aviation authorities remain a point of contention. The next scheduled return date among the announced suspensions is October 24, 2026, for Lufthansa and Austrian Airlines. Qatar Airways has set November 29 as a tentative date to resume Iran flights, while Turkish Airlines’ suspension is set to last at least until March 2027.

Frequently Asked Questions