SpaceNews.com
• Debra Werner
HawkEye 360 announced multiple contracts worth approximately $18 million with customers in the Middle East. The agreements expand the commercial satellite company’s regional business, underscoring continued demand for space-based capabilities among customers in the region.
Middle East
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HawkEye 360 announced multiple contracts worth approximately $18 million with customers in the Middle East. The agreements expand the commercial satellite company’s regional business, underscoring continued demand for space-based capabilities among customers in the region.
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New U.S. sanctions targeting companies that service Iranian airlines have barred carriers from operating to the UAE and Oman, while flights to Istanbul, China and Bangkok continued. The measures are reshaping Iran’s regional connectivity and escalating tensions between Tehran and neighboring states that host large Iranian diasporas.
Iraq has opened western airspace that was previously restricted to civil aviation, removing an operational constraint for airlines and other commercial operators. The change may give carriers additional routing flexibility through Iraqi airspace, subject to applicable safety, regulatory and air traffic control requirements.
The Pentagon is rapidly procuring small hybrid-electric drones to restore a critical surveillance capability in the Middle East, as combat losses make the MQ-9 Reaper fleet increasingly costly to sustain. The effort signals a shift toward cheaper, more numerous unmanned systems for contested operating environments.
Iran has threatened neighboring airports over restrictions affecting its airlines as U.S. sanctions disrupt regional connectivity. Some Iranian flights to China and Russia continue, underscoring the uneven impact of the restrictions and the growing geopolitical pressure on the country’s air transport network.
Iranian carriers are losing access to regional airports as U.S. sanctions increase the risks of handling their operations. Baghdad and Muscat are reportedly set to stop accepting Iranian flights, while Turkey continues to allow them for now, further constraining international options for Iran’s airlines.
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Airports worldwide handled a record 9.8 billion passengers in 2025, with international traffic up 6.1% and domestic traffic up 1.7%, while U.S. regional airlines accounted for all growth in scheduled passenger departures. ACI says traffic has since slowed markedly, including a 21% Middle East decline in early 2026.
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Iranian airlines have suspended services to several regional destinations after U.S. sanctions targeted access to fuel, ground handling and ticket sales abroad. Yet Mahan Air and other carriers continued flying to destinations including China, Turkey and Thailand, underscoring the limits of unilateral enforcement.
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