US sanctions could ban Iranian airlines worldwide, worsening Iranian economy

Washington announced a new set of sweeping sanctions targeting Iran’s oil exports, financial institutions and key sectors of its economy, marking the most comprehensive punitive package since the 2018 re‑imposition of U.S. sanctions. The measures, which were unveiled by the Treasury Department on Tuesday, aim to curtail Tehran’s ability to generate revenue and to pressure the government over its nuclear program and regional activities. The sanctions freeze assets held by designated Iranian entities, prohibit U.S. persons from conducting transactions with them, and extend secondary sanctions to non‑U.S. firms that facilitate prohibited dealings.

Analysts warned that the sanctions are likely to exacerbate the hardships faced by millions of Iranians already coping with a battered economy marked by high inflation, unemployment and a depreciating currency. Economic experts cited the country’s reliance on oil revenues, which now face severe restrictions, and noted that the banking curbs could further limit access to foreign currency, driving up the cost of essential imports. While U.S. officials argue the pressure is necessary to achieve diplomatic objectives, Iranian authorities have condemned the move as “illegal” and warned of retaliatory steps, leaving the outlook for the nation’s already fragile economic recovery increasingly uncertain.