US Threatens to Ground All Iranian Airlines

The United States has warned it will shut down all Iranian airlines from 23 September, as pressure on Iran grows and Houthi attacks increase pressure on shipping routes linked to Middle East oil supplies.

Speaking on CNBC’s “Squawk Box”, U.S. Treasury Secretary Scott Bessent said Washington would prevent Iranian carriers from operating by cutting off key services needed to fly. He said aircraft could be denied fuel, landing services and the ability to sell tickets, adding that any backers would face consequences connected to access to the U.S. dollar system.

Bessent said the Treasury was pressing Iran “like never before”, focusing on networks that help it operate internationally. He said Washington was targeting banks and other financial partners it described as enablers, as part of a wider effort to isolate Iran economically.

The warning followed sanctions announced by the Treasury last week aimed at Russia. The U.S. said it imposed new measures on VTB Bank, a state-controlled lender in Russia, describing the action as part of an attempt to limit support for Iran by targeting business partners and other “enablers”.

US Dollar System Warning

Bessent’s comments indicated that the enforcement approach would rely on denying Iranian airlines services that depend on firms operating within the U.S. financial system. He said providers would be unable to continue participating in transactions tied to dollar access if they supported Iranian carriers.

G7 Condemns Houthi Strikes

Separate from the airline warning, the G7 urged an end to attacks by Iranian-backed Houthi rebels on Yemen and Saudi Arabia. In a statement, the group condemned “unacceptable continued strikes” by the Houthis on Monday stateside and called for an immediate halt to military actions and attacks against civilian shipping.

The G7 also demanded that Iran stop supporting the rebel group.

The Houthis said they targeted “sensitive” sites in Riyadh over the weekend. Footage reported fire and smoke near the city’s airport.

In recent weeks, the Houthis have also seized Perim Island in the Red Sea, tightening their hold over the Bab el-Mandeb Strait. The development increases concerns that Iran and its proxies could seek leverage over two critical oil choke points, including the Bab el-Mandeb passage and the Strait of Hormuz.

Pressure On Oil Choke Points

The Bab el-Mandeb Strait offers an alternative route for oil exports that can bypass the Strait of Hormuz, particularly for Saudi Arabia. Saudi Arabia’s east-to-west pipeline allows some oil flows to be diverted for export from the Red Sea.

The G7 statement came after the UK said it would support Saudi Arabia in response to the Houthi threat. It reported that the Royal Air Force will provide air-to-air refuelling for Saudi aircraft.

Prime Minister Andy Burnham said the arrangement would last for “a matter of weeks” and would be kept under review. The move also followed a weekend decision by U.S. President Donald Trump to reject a request for help against the rebels, which was reported to include cancelling a planned airstrike.

Burnham said Britain was taking action to protect its interests and those of the wider region, citing Saudi Arabia’s exposure to attacks and the risk of further disruption to oil “pathways”.

Europe Eyes Additional Support

NATO Secretary Mark Rutte previously signalled that European countries could also provide support to Saudi Arabia. In a BBC interview, he said he would not be surprised if European allies were already discussing how to respond.

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23 September 2026