The Trump administration on Tuesday imposed sanctions on additional elements of Iran's aviation industry, targeting more than two dozen commercial and private airlines as well as foreign cargo service providers in its new push to isolate Tehran from its remaining trading partners.
The latest actions are part of the Trump administration’s Operation Economic Outcast campaign that is aimed at severing “critical financial lifelines” for the already heavily sanctioned Iranian government. The new penalties target the remaining facets of Tehran’s already beleaguered aviation ecosystem, which Washington has sanctioned for years.
“Let this be a warning to anyone doing business with Iran’s remaining airlines, all of which we sanctioned today: You are at risk of being cut off from the global financial system,” Treasury Secretary Scott Bessent said in a press release.
The Trump administration accused the 36 entities targeted this week of supporting the Islamic Republic's efforts to use its aviation sector to move weapons, personnel, and illicit cargo. The moves will subject foreign firms and governments that do business with the targeted entities to sanctions themselves, including a freeze on any assets they may have in U.S. jurisdictions.
The administration also claimed that private entities based in Turkey, the United Arab Emirates, Kazakhstan and Malaysia have provided parts and logistics services to Iran’s Mahan Air. The major airline, which flies from Tehran to a few dozen destinations in Asia, Europe and the Middle East, has been subject to U.S. counterterrorism sanctions since 2019 for its support for Iran’s paramilitary Revolutionary Guard, which the State Department has designated a foreign terrorist organization.
The airline was first targeted by the U.S. under the Obama administration in 2011, when it accused Mahan Air of being used to send weapons to Iranian proxies in Lebanon and Yemen.
The latest sanctions campaign is part of a two-pronged economic and military approach by President Donald Trump as he struggles to bring an end to a more than six-month-old war with Tehran.
Last week, the U.S. announced penalties against Golden Global Yatirim Bankasi Anonim Sirketi, a Turkish bank, which it accused of being established to enable Iran’s efforts to transfer oil revenues from China to Turkey, where they could then be converted to cash and gold.
The U.S. also said the institution “knowingly offered” banking services to Iranian financial entities, including those already sanctioned by the U.S. government in 2022 for funneling Tehran’s oil sales.
An Egyptian bank’s operations in the United Arab Emirates were also limited last month as part of the campaign, but the administration stopped short of imposing sanctions as it grapples with how to sever Iran's economic footprint without upending the global financial system.
Treasury Secretary Scott Bessent arrives for the G20 Finance Ministerial in Asheville, N.C., Monday, Aug. 31, 2026. (AP Photo/Gerald Herbert)
LONDON (AP) — The United Kingdom on Tuesday banned trade with Israeli settlements in the occupied West Bank, where it says “settler terrorists” are carrying out “ethnic cleansing” of Palestinians, in a significant toughening of Britain's stance toward a longtime ally.
The U.K.'s announcement was an attempt to prevent expanding settlements from making a Palestinian state impossible. Israel responded angrily and said it would close the British consulate in Jerusalem.
Foreign Secretary Ed Miliband said the U.K. will ban imports of all goods from the settlements and bar companies from providing services for the settlements, including financing, construction, infrastructure, real estate and advertising. He said France and Canada would also ban trade in goods from settlements.
“I do not believe the British people want us supporting the occupation by accepting products from settlements in our shops and supermarkets," Miliband said.
The economic impact is likely to be limited, since the settlements produce only a small amount of largely agricultural exports. But the move is a symbolic expression of displeasure with Israel by some of its closest allies, and it offers a new sign of the Israeli government's growing isolation as a result of the Gaza war.
Miliband said that he feels “a deep sense of shame about what has unfolded in Palestine under the eyes of the international community.”
“We will not acquiesce in the destruction of the two-state solution,” he said.
Israeli Foreign Minister Gideon Sa’ar condemned the “despicable” move. He said Israel would expel U.K. representatives from a joint military center monitoring the Gaza ceasefire and end U.K. training of the Palestinian Authority’s security forces in the West Bank. In addition, Israel barred entry to a dozen British lawmakers and other U.K. citizens whom Sa’ar said were “involved in antisemitic and anti-Israel activity.”
Under the ultranationalist government of Israeli Prime Minister Benjamin Netanyahu, settlement construction in the West Bank — seized by Israel in the 1967 Mideast war — has surged. Netanyahu’s government views the West Bank as the biblical and historical homeland of the Jewish people and is opposed to the creation of a Palestinian state.
The international community overwhelmingly considers such construction to be illegal and an obstacle to peace. Britain and other countries have voiced particular concern about the E1 settlement project approved by Israel, which would effectively cut the territory in two. Palestinians and rights groups say it could destroy hopes for a future Palestinian state.
There have been marked increases in attacks by settlers on Palestinians, evictions from Palestinian towns, Israeli military operations and checkpoints that choke freedom of movement, as well as several Palestinian attacks on Israelis.
"The British government agrees that there is ethnic cleansing of Palestinians in areas of the West Bank, perpetrated by settler terrorists,” Miliband said. He said there had been “houses bulldozed, roads and public infrastructure destroyed, families displaced from their homes.”
The ban on trade will be in place in six to nine months, Miliband said. He said Canada and France will also announce a ban on goods from Israeli settlements, while Denmark, Finland, Iceland, Poland, Portugal and Sweden have pledged to “support further action.”
The Netherlands, Ireland, Belgium, Spain and Norway have either banned goods from settlements or are in the process of doing so, he said.
Miliband also tightened Britain’s embargo on weapons sales to Israel for use in Gaza to include arms “that materially contribute to the occupation” of Palestinian territories.
Britain recognized Palestinian statehood last year in an attempt to revive dwindling efforts to achieve a two-state solution.
The center-left Labour Party government has previously sanctioned some Israeli settlers and illegal outposts over violence against Palestinians and illegal development in the West Bank.
In a change of Britain’s position, Miliband said Tuesday that the U.K. regards Israel’s occupation of the West Bank, and not just the settlements, as illegal.
The tougher stance is likely to be welcomed by many Labour voters and lawmakers, who have urged the government to go further in sanctioning Israel and supporting the Palestinians.
But some Labour members expressed concern that the sanctions could boost support for Netanyahu, who is facing a tough battle for reelection in October, or lead to attacks on British Jews.
Opposition Conservative Party foreign affairs spokesman Tom Tugendhat said that "turning Israel into a pariah will risk sectarian division in our own country and risk a further rise in antisemitic violence on our own streets.”
Before Miliband’s announcement, Itamar Ben-Gvir, Israel’s hard-line public security minister and a settler leader, called on Netanyahu to recognize Argentina’s claim to the Falkland Islands, a British overseas territory in the South Atlantic known in Argentina as Islas Malvinas.
Israeli President Isaac Herzog called the ban “a grave miscalculation, a decision that will fall on the wrong side of history.
“In the current context, it would be a gross interference in the democratic elections of a sovereign nation,” he said.
The move was also criticized by the U.S. ambassador to Israel, Mike Huckabee, a longtime supporter of the settlements, who said that it was “discrimination against the Jewish people.” He said the U.K. could face “repercussions or retaliations” from the U.S. if it imposed the sanctions.
Several U.S. states have laws banning contracts or investments with businesses that boycott Israeli firms, including those based in the West Bank. U.S. Rep. Randy Fine, a Florida Republican, said in a post on social media that the U.K. ban could put at risk “billions of dollars” in trade between British businesses and Florida.
Prime Minister Andy Burnham’s office said he spoke with U.S. President Donald Trump on Monday and set out “the U.K.’s commitment to working toward peace and security in the region” and achieving a two-state solution. There was no word on how Trump responded.
Miliband, whose parents came to the U.K. as refugees from the Nazis, told lawmakers he spoke “as a proud British Jew” and supporter of Israel.
“Our argument is not with the people of Israel, with whom the U.K. has unshakable bonds,” Miliband said. “Our argument is with the conduct of its government.”
Associated Press writers Sylvia Hui in London and Megan Mineiro in Jerusalem contributed.
FILE - Britain's Foreign Secretary Ed Miliband speaks during a press conference in Madrid, Spain, on July 29, 2026. (Leon Neal/Pool Photo via AP, File)
