Trump Administration Urged to Close Turkish Loophole Aiding Iran Sanctions Evasion

The Trump administration is being urged to take stronger action against Turkey for allegedly enabling Iran to circumvent U.S. sanctions, particularly through its aviation and financial sectors.

Despite U.S. efforts to target Tehran's shipping, banking, and financial networks, Iran has found a persistent avenue for international access through air travel. While many Middle Eastern countries have suspended flights to and from Iran, Turkey has been identified as a key facilitator. This comes as the U.S. has moved to deny Iranian carriers landing rights and has sanctioned Iranian airlines, including all active carriers in September.

According to an analysis, over 90 landings by Iranian airlines occurred in Turkey after a September 23 deadline, when Treasury Secretary Scott Bessent indicated that Iranian airlines' international flights would be effectively grounded. These operations are reportedly supported by Turkish companies providing ground services, passenger handling, and cargo operations. FUGO Ground Services is cited as an example, with agreements with at least eight U.S.-sanctioned Iranian carriers. A Caspian Airlines aircraft, a sanctioned carrier, was reportedly serviced by FUGO at Istanbul Airport on September 28.

This is not the first instance of Turkish entities allegedly aiding Iran. Treasury has previously sanctioned Istanbul-based banks for facilitating transactions for the Islamic Revolutionary Guard Corps and companies for supporting Mahan Air, a sanctioned Iranian carrier. Historically, Turkey's state-owned Halkbank was involved in a scheme to convert Iranian oil proceeds into gold and cash, disguised as food and medicine shipments, a situation that led to a Justice Department investigation. While Turkish officials were implicated, a U.S. federal judge dismissed the indictment against Halkbank in June without fines or an admission of wrongdoing.

The analysis contends that Turkey's actions, despite its status as a U.S. ally and its role in mediating conflicts, represent a pattern of enabling the Iranian regime. It suggests that Turkey's approach involves appearing cooperative by shutting down some channels while leaving others open, which is counterproductive to U.S. objectives. Iranian oil exports have reportedly been nonexistent, and oil from Arab Gulf states is flowing again, indicating the effectiveness of sanctions when fully enforced.

To close this loophole, the U.S. should insist that Ankara halt all Iranian flights to Turkish territory and impose sanctions on any entity providing material support to these airlines, including FUGO Ground Services. Such measures would send a clear message to companies willing to work with sanctioned Iranian airlines and would help constrain Iranian carriers' operational capabilities.