Iraq has instructed its Civil Aviation Authority to suspend Iranian flights to Baghdad International Airport effective midnight, following direct warnings from the United States to sanction international airports and ground handlers serving Iranian airlines, according to a Reuters report.

Earlier this week, U.S. Treasury Secretary Scott Bessent announced that starting September 23, Iranian airlines will face stringent secondary sanctions. Bessent made clear that aviation service providers and international hubs that continue to serve Iranian carriers risk severe isolation from the U.S. dollar clearing system.
According to two officials, the Iraqi government has discussed diverting scheduled Iran Air flights from Baghdad’s main airport to the regional airport in Najaf. The officials spoke on condition of anonymity because of the decision’s political sensitivity.

Concurrently, Iran’s semi-official Tasnim News Agency reported, citing the Iranian Civil Aviation Organization, that flights departing Tehran for Baghdad and Muscat were canceled starting Wednesday, while other international routes, including services to Istanbul, were expected to proceed as scheduled.
A spokesperson for Iran’s Civil Aviation Organization added that Iranian travelers are currently not permitted entry through Oman’s airport network, noting that diplomatic discussions are underway to resolve the impasse.

In an interview with CNBC, Secretary Bessent reiterated that foreign corporations and international airport authorities servicing Iranian airliners run direct risks of crippling economic enforcement: “You cannot provide them with fuel, ground handling services, or sell their tickets—otherwise, you will be severed from the US dollar system.”
