UAE Grounds Iran's Entire Airline Fleet As US Sanctions Bite — Tehran Fires Back By Blocking Its Airspace
Dubai's aviation authority suspended every Iranian carrier "until further notice" under threat of US secondary sanctions, and Tehran retaliated within hours by restricting its skies to Emirates, Etihad and flydubai jets.

The United Arab Emirates has suspended all flights operated by Iranian airlines to and from the country, a sweeping move that took effect Thursday and marks one of the sharpest ruptures yet in Gulf aviation ties since Washington escalated its economic pressure campaign on Tehran. The UAE's General Civil Aviation Authority said the suspension covers every Iranian carrier "until further notice," according to The National.
The trigger was a US Treasury crackdown earlier this month that sanctioned 27 Iranian airlines and dozens of supporting firms tied to the country's aviation sector. Treasury Secretary Scott Bessent had warned that any airport or fuel supplier continuing to service blacklisted Iranian carriers risked being cut off from the dollar financial system, telling ground handlers bluntly that they "cannot provide them with fuel, you cannot provide them with landing services" without facing exclusion, per reporting cited by The National.
Dubai's decision did not happen in isolation. Al Jazeera reports the UAE joins Oman, Iraq, Azerbaijan, Georgia and Turkmenistan in barring Iranian carriers, effectively boxing in Iran's civil aviation sector across much of its regional airspace. Turkmenistan reportedly turned back a Tehran-to-Dushanbe flight the same day the restrictions bit, while some Iranian aircraft continue limited service to China, Armenia and Turkey.
Tehran Retaliates in the Skies
Iran did not wait long to respond. According to Aviation A2Z, Iranian authorities moved to restrict access to their airspace for UAE-registered aircraft, naming Emirates, Etihad Airways and flydubai specifically. The practical sting may be limited — Emirates and Etihad had already rerouted many services around Iranian airspace earlier this year amid regional military escalation — but flydubai is more exposed. The budget carrier had recently resumed routing select Russia-bound flights through Iranian skies to shave flight time, and losing that corridor would force longer routes, higher fuel burn and added operating costs.
DIPLOMATIC AND AVIATION TALKS ARE UNDER WAY TO REMOVE THE RESTRICTIONS, IRAN'S CIVIL AVIATION ORGANIZATION SPOKESMAN MAJID AKHAVAN SAID.
The aviation freeze compounds an already fraying financial relationship. The UAE Central Bank has separately barred Bank Melli Iran — the country's largest lender — from processing transactions between its eight UAE branches and Iran, citing anti-money-laundering compliance failures. That follows the UAE's broader suspension of trade, commercial and financial dealings with Iran after attacks on UAE-linked tankers and Tehran's rejection of earlier US diplomatic overtures.
For ordinary travelers, the immediate effect is chaos on routes that once saw multiple daily flights between Tehran and Dubai, long a vital link for business travel, family visits and medical tourism given Dubai's status as a regional hub. Airlines on both sides now face rerouting headaches, and neither government has offered a timeline for when — or whether — service might resume.
Analysts see the standoff as a bellwether for how far Washington's aviation sanctions regime will reshape Gulf air travel more broadly, especially with several more regional states already following the UAE's lead. Whether the dispute cools through the diplomatic channel Iran says is already open, or hardens into a longer-term closure, will likely become clear within days as airlines finalize winter flight schedules.