The Central Bank of Turkey (BDDK) has revoked the license of the Bank Mellat Iran branch in Istanbul. This decision was made following increased economic pressures from the United States on Tehran and based on Turkish banking laws.
Reason for License Revocation
An announcement published on Saturday in the official newspaper of Turkey did not specify particular reasons but stated that this decision was made under clauses of Turkish banking law that allow banks to revoke their licenses if the rights of depositors or the security and stability of the financial system are at risk. This action is part of the United States' efforts to increase economic pressure on Iran.
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Consequences of License Revocation and Sanctions
The U.S. Department of the Treasury imposed sanctions this month on a small Turkish investment bank and two affiliated companies. These sanctions, along with other economic pressures, have caused companies to exercise more caution in cooperating with Iranian airlines. For example, Mahan Air, which is under U.S. sanctions due to alleged ties with the Islamic Revolutionary Guard Corps, announced on Thursday that it would suspend its flights to Turkey and Oman. This flight suspension has been in effect since September 21 and will continue until further notice.
This revocation of the operating license and the suspension of flights signify further isolation for Tehran on the international stage and a reduction in the limited existing air connections. Flights to Istanbul provide Iranians access to communications with Europe and other parts of the world, while direct routes to Europe have been severely restricted.
On September 8, the United States imposed sanctions on 27 Iranian airlines and several foreign companies that assist the Iranian aviation industry. Washington has also warned that companies facilitating Iranian aviation activities may face serious consequences. These actions are part of the U.S. campaign to increase economic pressure on Iran at a time when wars have driven energy prices up globally.
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