US sanctions set to hit Iranian airlines after cancellations reported

Ever tighter US sanctions intended to cripple Iranian aviation come into force on Wednesday, after Washington vowed to "shut down" Tehran's carriers and punish anyone doing business with them.

In their first acknowledgement of disruption, Iranian media reported late Tuesday that flights to the Iraqi and Omani capitals would be cancelled the following day, but other routes would be unaffected.

The new measures, announced by Treasury Secretary Scott Bessent on Monday, follow earlier aviation sanctions as well as his threat of an "economic D-Day" meant to force the Islamic republic into submission, after military means of ending the Middle East war stall.

It remained unclear what their full impact would be, as the Iranian aviation sector has already been targeted for years by various sanctions.

The Tasnim news agency cited a civil aviation spokesman as saying that "Baghdad and Muscat airports will no longer accept Iranian flights" starting Wednesday.

"Other international flights, including Istanbul, will operate as scheduled and as usual, and at present there are no problems with these flights," Tasnim reported.

According to Tasnim, Iran's aviation authorities are in talks to reroute Baghdad flights to Najaf, a major destination for Iranian pilgrims.

Earlier in the day, flag carrier Iran Air said it had "not received any notification or official instruction from the civil aviation authorities of Turkey, the Republic of Azerbaijan, or Iraq".

On Monday, however, Georgia barred Iranian carriers, while the airline Mahan, a private Iranian operator, said it suspended service to Turkey at the request of its government.

The Iraqi government has not publicly announced plans to enforce a ban, but several sources, including a senior government official, told AFP that Baghdad would comply with the US measures.

Iraq is a top destination for Iranian airlines, mainly transporting pilgrims between holy sites.

The prospect of a suspension of flights between the two countries has sparked concerns from some Iraqi travel agents.

In Najaf, home to one of the most revered Shia Muslim shrines, travel agent Haidar Shamaa said "most travel companies in the city depend on booking flights" to Iranian airports.

Several travel agencies said panicked clients were calling for updates and that they were considering switching to land routes, though that would mean much longer journeys for travellers.

Announcing the expanded measures on Monday, Bessent had said "all the Iranian airlines will be shut down around the world".

"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.

The restrictions further complicate the ability of Iranians to travel abroad or return to their country.

They have also drawn protest from China, a major trade partner of Iran, which said it "opposes illegal unilateral sanctions that lack a basis in international law or authorisation from the UN Security Council".