The U.S. Treasury has lifted counter-terrorism sanctions on Iraq’s Fly Baghdad Airlines and two of its aircraft, citing significant changes to the airline’s operations and conduct. The move does not signal any shift in Washington’s policy towards Iran.
The U.S. Treasury has removed counter-terrorism sanctions imposed on Iraq’s Fly Baghdad Airlines and two of its aircraft, citing significant changes to the airline’s operations and conduct.
The sanctions were introduced in 2024 over the airline’s alleged links to the Quds Force of Iran’s Islamic Revolutionary Guard Corps (IRGC).
The U.S. Treasury said on Wednesday that Fly Baghdad Airlines Co., Iraq Express and two Boeing 737 aircraft had been removed from its Specially Designated Nationals list.
A Treasury official said the decision was part of the Office of Foreign Assets Control’s established process for reconsidering sanctions when a designated entity changes its behaviour.
“FBA has demonstrated major changes to their operations such that their listing is no longer warranted,” the official said. “They have addressed sanctionable conduct.”
The Treasury did not provide details of the specific operational changes that led to the sanctions being lifted.
The official stressed that the move did not signal any change in U.S. policy towards the Iranian government, the IRGC or any organisation designated as a terrorist group.
The decision was also unrelated to negotiations between the U.S. and Iran over a possible agreement to end hostilities in the Gulf, the official said.
The Treasury added that sanctions could be reimposed at any time if Fly Baghdad resumed activities that could be be subject to U.S. restrictions.
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