U.S. Treasury Secretary Scott Bessent announced on Monday that all Iranian airlines will be effectively shut down starting Wednesday, September 23, as part of an intensified economic campaign against Tehran.
Speaking to CNBC’s “Squawk Box,” Bessent outlined the mechanism for the sanctions, which relies on leveraging the dollar’s dominance in global finance. He stated that any entity providing fuel, landing services, or ticket sales to Iranian carriers would face severe penalties, including being “knocked out of the dollar system.”
“Washington is pressuring Iran like never before,” Bessent said, emphasizing that the administration is actively targeting Iran’s financial “enablers” worldwide. This follows recent Treasury actions last week, which imposed new sanctions on Russia’s state-controlled VTB Bank to further isolate Iran’s business partners.
Meanwhile, geopolitical tensions in the region are heightening concerns over energy security. The United Kingdom has agreed to support Saudi Arabia against Iranian-backed Houthi rebels, with the Royal Air Force providing aerial refueling for Saudi aircraft. Prime Minister Andy Burnham described the arrangement as a short-term measure lasting only a few weeks, subject to review.
Burnham justified the move as necessary to protect British interests and ensure the continued flow of oil. His statement comes after U.S. President Donald Trump reportedly declined a request from Riyadh for direct military assistance over the weekend, including the cancellation of a planned airstrike.
The strategic situation has worsened following reports that Houthi rebels recently seized Yemen’s Perim Island in the Red Sea. This development tightens their grip on the Bab el-Mandeb Strait, a critical waterway that serves as an alternative export route for Saudi oil via its East-West pipeline.
With Iranian forces and proxies now threatening both the Bab el-Mandeb Strait and the Strait of Hormuz, fears of control over two major global oil chokepoints are growing. NATO Secretary General Mark Rutte previously indicated that European allies were discussing potential support for Saudi Arabia, signaling a broader regional response to the escalating crisis.
Removing Iran from the dollar system sounds harsh but effective. It shows exactly how much leverage Washington still holds globally.
Trump declining to help while the UK steps in is quite the geopolitical twist. Prioritizing European allies over direct US intervention?
If Houthi rebels control Perim Island, are they really threatening both straits? That feels like a massive risk to global energy supplies.
I had no idea the UK was actually sending refueling support to Saudi Arabia. That escalates things significantly beyond just rhetoric.
Grounding Iranian airlines seems like a heavy hammer for what is essentially a financial dispute. Hope this doesn’t backfire.