UAE suspends Iranian airlines following US sanctions threat

• UAE acts after US ultimatum
• Iran retaliates with airspace ban
• Flydubai flights to Baku diverted

The UAE has suspended all flights operated by Iranian airlines after the US threatened sanctions, according to Iran state media.

The US Treasury on September 8 sanctioned 27 airlines and related entities, targeting Iranian carriers and companies that support the country’s aviation sector.

The latest measures also target individuals and companies involved in aircraft procurement and aviation support across the UAE, Turkey, China, India, the UK, Malaysia and other countries.

Iran responded on Thursday by banning UAE flights over its airspace. Flydubai had only recently returned to flying over the country on its flights to and from Baku in Azerbaijan. Data from flight-tracking website Flightradar showed flights being diverted over Iraq and Turkey.

Both Dubai Airports and Flydubai have been contacted for comment.

Treasury secretary Scott Bessent said airports and companies providing services to Iranian-operated aircraft, including fuel, landing facilities and ticket sales, could face secondary sanctions.

The measures threaten to further restrict Iranian airlines’ ability to operate internationally, particularly where they depend on foreign airports for refuelling, handling and passenger services.

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A short wind-down period allowing companies and governments to stop providing services to designated Iranian carriers expired on Wednesday, prompting the cancellation of most remaining international flights operated by Iranian airlines to destinations including Turkey, the UAE and China.

Several countries that had continued to provide Iranian airlines with access to their airports and airspace have also moved to restrict those services, including Oman, Azerbaijan and Georgia.

The latest restrictions come as Washington increases economic pressure on Tehran.

The US Treasury launched Operation Economic Outcast last month in an effort to choke Iran’s access to international transactions, calling on countries worldwide to close local branches of long-sanctioned Bank Melli and threatening Banque Misr UAE with losing its US correspondent accounts.

On Wednesday the UAE central bank banned Melli’s domestic branches from “conducting any financial transactions to and from Iran, including trade finance and fund transfers”.