US halts Iranian airline landings as Bessent targets 21% oil chokepoint

The US is shutting down Iranian airlines' access to landing spots, refueling and ticket sales as part of an "Economic Fury" campaign aimed at choking Tehran's revenue and reopening the Strait of Hormuz.

The United States will cut off Iranian airlines from airport landing rights, refueling services and ticket sales, Treasury Secretary Scott Bessent said Thursday, escalating Washington's pressure campaign against Tehran as the Strait of Hormuz remains a flashpoint for global energy markets.

"Only a satisfactory outcome in negotiations will end the downward spiral," Bessent said in a post on X, without specifying what terms would be acceptable. He warned businesses and governments against making payments he described as "Iranian tolls disguised as aid," referring to fees linked to shipping through the strait, which handles about 21% of global oil trade, or roughly 17 million barrels per day.

The Treasury chief said a US naval blockade has already reduced Iranian crude shipments to record lows. The new aviation measures target both of Iran's commercial carriers — Iran Air and Mahan Air — effectively grounding Tehran's ability to move passengers and cargo internationally. The sanctions are part of what Bessent called the "Economic Fury" campaign, a multi-pronged effort to restrict Iran's energy revenues and transport networks that has intensified over recent weeks.

Strait of Hormuz at the Center

The escalation comes as the Strait of Hormuz — a 21-mile-wide waterway connecting Persian Gulf producers to global markets — has become the central battleground in US-Iran tensions. The last time the strait faced a comparable disruption threat was during the 2019 tanker attacks, when oil prices spiked 15% within two weeks and the Brent-WTI spread widened to $8 a barrel. Iran has previously threatened to close the strait in response to economic pressure, a move that would disrupt supply from Saudi Arabia, Iraq, the UAE and Kuwait — countries that together pump more than 15 million barrels per day through the chokepoint.

Brent crude rose 1.2% to $78.40 a barrel on the announcement, extending gains as traders priced in a prolonged disruption to Iranian supply. The risk premium embedded in oil options widened, with Brent implied volatility climbing to 42%, up from 35% a week earlier. Gold gained 0.6% to $2,385 an ounce, while the US dollar index strengthened 0.3% against a basket of major currencies. Airline stocks globally faced headwinds on expectations of higher rerouting costs through alternative air corridors, with the Bloomberg World Airlines Index falling 1.8%.

The US has also imposed new sanctions on Iran's Persian Gulf Strait Authority, targeting entities that facilitate toll collection and shipping coordination through the waterway. The Treasury Department said the authority has been collecting fees from commercial vessels transiting the strait, effectively operating as an extortion network under the guise of maritime services. The sanctions freeze any US-held assets of designated entities and prohibit American citizens from doing business with them.

Bessent said the pressure campaign would continue unless negotiations with Tehran produce what he called a "satisfactory outcome," leaving the timeline for any diplomatic resolution uncertain. Iran responded Thursday by saying it had targeted a US air base after American strikes, according to state media, indicating that the military dimension of the conflict is escalating in parallel with the economic measures.

The dual-track escalation — economic strangulation combined with military exchanges — raises the risk of a broader confrontation that could draw in regional allies and further disrupt energy flows through the Persian Gulf. Traders are now watching for any signs of diplomatic movement, with the next potential window for talks unclear. The G7 finance ministers, meeting in Paris this week, discussed the Iran situation but have not announced coordinated measures, leaving the US to act unilaterally for now.

This article is for informational purposes only and does not constitute investment advice.