Bessent’s ‘shut down’ ultimatum to Iran’s airlines has an India footnote — but it’s an old one
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US Treasury Secretary Scott Bessent on Monday, September 21, warned that Iranian airlines will be “shut down around the world” from September 23. While this has an India connection, it is not a new direct-flight disruption story. The US sanctions campaign against Iran’s aviation sector has already touched an India-based company, while the latest US threat raises fresh questions over the exposure of foreign airports, fuel suppliers, ground handlers and ticketing agents servicing Iranian carriers.
Bessent told CNBC on Monday that foreign companies providing services to Iranian airlines could risk losing access to the US dollar system.
“On September 23, all the Iranian airlines will be shut down around the world,” Bessent said. “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.”
Secondary sanctions, not a direct airport ban
Bessent’s comments are best understood as an enforcement warning under the existing US sanctions framework, rather than a fresh order directing foreign governments or airports to ground Iranian aircraft.
The US Treasury’s September 8 action sanctioned 36 targets for supporting Iran’s aviation sector, including the remaining Iranian airlines that had not previously been designated. Treasury said the action targeted networks providing financial, logistical and commercial support to Iranian aviation.
The mechanism is important for companies outside the US. Rather than directly ordering an Indian or other foreign airport to refuse an Iranian aircraft, Washington can threaten sanctions exposure for entities that continue providing services to designated Iranian carriers. Bessent’s reference to being “knocked out of the dollar system” stresses the financial pressure behind the warning.
India’s sanctions link dates to July
India has already appeared in the US sanctions trail.
On July 30, the US Treasury’s Office of Foreign Assets Control designated six entities and individuals across China, India, Russia and Iran over their alleged support for Mahan Air. Treasury said the targets included companies serving as general sales agents for the Iranian carrier.
The Indian entity named by Treasury was Skiez Travels and Logistics Private Limited, which Washington identified as a general sales agent for Mahan Air. The action did not designate an Indian airport operator or oil marketing company.
That distinction is important. There is currently no evidence that Indian airports, fuel suppliers or other aviation companies have been newly directed by Washington to stop servicing Iranian airlines following Bessent’s Monday remarks.
What about Mahan Air’s India operations?
The current picture is more nuanced than a simple “no Iranian flights to India” claim.
Mahan Air has operated the Tehran-New Delhi route, with the latest documented round trip taking place on September 18-19. The Delhi-Tehran route was not scheduled for September 21, according to latest flight-status data.
Whether Mahan Air or any other Iranian carrier continues operating services into India after September 23 will depend not only on the airlines themselves but also on the willingness of local service providers to assume potential US sanctions and dollar-clearing risks.
There was no immediate response available from India’s Ministry of Civil Aviation or the Directorate General of Civil Aviation specifically addressing Bessent’s remarks.