Crude oil prices increased on Monday following heightened concerns over escalating tensions between the United States and Iran, triggered by a stern warning from U.S. Treasury Secretary Scott Bessent regarding Iranian aviation.
Speaking on CNBC’s Squawk Box, Bessent declared that all Iranian airlines would be effectively shut down starting Wednesday. He outlined the mechanism for this enforcement, stating that any aircraft landing in jurisdictions aligned with the U.S. would be denied fuel, landing services, or ticket sales. Airlines non-compliant with these measures would face severe economic repercussions, including exclusion from the global dollar system.
The aggressive stance comes even as investors monitor potential diplomatic avenues to de-escalate the Middle East conflict. Iranian President Masoud Pezeshkian is scheduled to travel to New York to address the United Nations General Assembly, where he plans to present Iran’s positions on recent international developments, particularly focusing on the ongoing war with the U.S. and Israel.
According to Iran’s semi-official Tasnim news agency, Pezeshkian will also engage in bilateral talks with leaders from several countries during the window of September 22 to 26, as well as on September 28, on the sidelines of the UN session.
Great, gas prices are definitely not going down. Just what we needed before the holidays. Typical geopolitical whiplash.
Economic strangulation via aviation? Bold move. Hope it doesn’t backfire and drag everyone deeper into a Middle East war.