Baghdad is cutting the cord. The Iraqi government has instructed the civil aviation authority to halt all Iranian flights from entering Baghdad airport starting at midnight Wednesday. This abrupt suspension lands just as US Treasury Secretary Scott Bessent declared on Monday that all Iranian airlines would be shut down by September 23. The threat is specific: any airport or service provider handling Iranian carriers risks being “knocked out of the dollar system,” Bessent told CNBC.
Washington’s leverage is clear. Bessent warned that fueling, landing, or ticketing services for Iranian planes would trigger severe secondary sanctions. It’s a blunt instrument meant to isolate Tehran’s aviation sector completely. Meanwhile, Iranian news agency Tasnim confirmed that flights from Tehran to Baghdad and Muscat were already cancelled for Wednesday, while routes to Istanbul continued operating.
The disruption isn't just a technicality; it’s a geopolitical squeeze. The Iraqi government is reportedly discussing diverting Iranian Airways flights to Najaf airport, a smaller hub that might offer a temporary workaround. But the pressure is mounting. The US has recently tightened restrictions on Iranian trade, energy, and finance, expanding secondary sanctions to foreign companies doing business with Tehran.
Tehran isn't backing down. Iran's security chief Mohsen Rezaei told Al Jazeera last week that “Trump’s threats will not achieve any results” and that the country is “prepared for a decisive war.” Rezaei added that it is in Washington’s interest to accept Iranian conditions for a long-term resolution, with Qatar mediating talks.
For now, the focus is on the next 48 hours. If the Baghdad ban holds, Iranian travelers face a fragmented network. The US expects compliance by September 23, or the sanctions hammer comes down harder. The next move likely comes from Tehran’s diplomatic channel in Doha, or from further US enforcement actions against allied airlines.