US Treasury official pressures Oman, UAE, Turkey to cut Iran banking and flight ties

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US Treasury official Jonathan Burke secured commitments from Oman, the UAE, and Turkey to restrict Iranian banking and airline operations during a two-week Middle East and Europe tour. The countries suspended flights by Iranian carriers and limited transactions by Iranian banks, according to The Wall Street Journal. The moves came as Washington pressed partners to choose between trade with Tehran and access to the US market.
Key Facts
- Oman banned all Iranian airline flights within a week of Burke's visit, starting with Mahan Air.
- The UAE suspended all Iranian airline flights on September 24 and barred Bank Melli branches from Iran-related operations.
- Turkey halted Mahan Air flights and its banking regulator revoked the license of Iran's Bank Mellat.
- US Treasury officials held talks with more than 50 countries, and Azerbaijan and Georgia also suspended Iranian carrier flights.
- Britain will not renew a general license allowing several Iranian banks to operate, with expiry on October 22 potentially halting Bank Melli's London unit.
Burke's Middle East Tour
Jonathan Burke, US assistant secretary of the Treasury for terrorist financing, spent two weeks in the Middle East and Europe demanding that Iran's trade partners cut banking and transport ties with Tehran. Burke told counterparts they effectively faced a choice between trade with Iran and access to the US market. His first stop was Oman, a mediator between Iran and the West, where he demanded authorities stop servicing Mahan Air, a private Iranian carrier linked by Washington to the Islamic Revolutionary Guard Corps. Omani officials saw the visit as a sign of US readiness to enforce sanctions and feared consequences for their economy.
Country Actions
Within a week, Oman banned Mahan Air flights and then halted all Iranian airline operations. In the UAE, authorities prohibited local branches of Bank Melli, Iran's largest commercial bank, from conducting Iran-related operations. The UAE suspended all Iranian airline flights on September 24. Turkey stopped Mahan Air flights and its banking regulator annulled the operating license of Iran's Bank Mellat, which handled trade settlements between the two countries. Azerbaijan and Georgia also suspended flights by Iranian carriers, while Mahan Air continues to fly to China and Russia.
London and Broader Campaign
Burke ended his tour in London with meetings at the UK Foreign Office and Treasury. Britain will not extend a general license that allowed several Iranian banks to operate in the country, and its expiry on October 22 could effectively halt Bank Melli's London unit. British lawyer Nigel Kushner, who has advised companies on Iran sanctions for 20 years, told WSJ he had never seen such intense pressure on Iran's banking and aviation sectors. In August, the US Treasury launched Operation Economic Pariah, targeting Iran's revenue sources and entities that assist it.