The U.S. Is Escalating Its Economic Pressure Campaign Against Iran. Over Two Dozen Airlines Are Being Targeted.

The Treasury Department sanctioned 27 Iranian airlines as part of its campaign to continue exerting economic pressure on the country.

The department noted in a statement that, overall, the "Treasury's Office of Foreign Assets Control (OFAC) sanctioned 36 targets for supporting Iran's aviation sector, which the regime uses to move weapons, personnel, and illicit cargo."

The decision also targets "covert front companies, foreign intermediaries, and deceptive transshipment routes that Iran relies on to obtain U.S.-origin aircraft and sensitive technology."

"Under Operation Economic Outcast, we promised severe consequences for those providing financial lifelines to the Iranian regime," Treasury Secretary Scott Bessent said.

"Let this be a warning to anyone doing business with Iran's remaining airlines, all of which we sanctioned today: You are at risk of being cut off from the global financial system," he added.

The U.S. has been increasing sanctions over the past weeks as it seeks to isolate Iran financially. "This is going to be financial violence if we have to," Bessent said last week. "We are showing people that we know who you are, you know who you are, and this has got to stop."

The plan appears to be having an impact. Three senior Iranian sources told Reuters last week that the latest pressure is becoming increasingly difficult for the government to withstand.

Iran has spent decades developing networks to work around Western sanctions, but Washington is now targeting many of the financial channels, intermediaries and trading arrangements that allowed those systems to function.

At the center of Iran's economic problems is oil. Iranian crude loadings have plunged to roughly 260,000 barrels per day, compared with about 1.7 million barrels a day a year earlier, according to Kpler data cited by the outlet. A U.S. blockade imposed in July has effectively prevented Iran from exporting crude through its traditional routes, cutting deeply into the country's principal source of foreign currency.

That loss of revenue is arriving when Iran can least afford it. The rial has fallen from roughly 1 million to the U.S. dollar a year ago to more than 2.2 million, while official figures put average inflation over the previous 12 months at 69.9%. Prices for food, beverages and tobacco have risen at nearly twice that pace.

One senior Iranian source also said the country has only about two months of gasoline supplies remaining. Despite being a major oil producer, Iran must import some gasoline because its domestic refining capacity cannot meet demand.

The labor market is deteriorating as well. Official unemployment climbed to 9.1% in the spring, while employment declined by approximately 450,000 people from a year earlier. Reuters reported that the average monthly salary is around $125, compared with basic household expenses estimated at approximately $450 a month.