US Lifts Sanctions on Iraqi Airline, Denies Easing Pressure on Iran

The United States Treasury Department has lifted sanctions on Iraqi airline Fly Baghdad and two of its aircraft, which had previously been accused of affiliation with Iran’s Islamic Revolutionary Guard Corps (IRGC), though authorities denied any suggestion that sanctions on Iran have been relaxed.

Fly Baghdad, also known as Iraq Express, along with two of its Boeing 737 aircraft, has been removed from the Specially Designated Nationals (SDN) sanctions list, according to a statement from the department’s Office of Foreign Assets Control on Wednesday (5/8) local time.

The airline was first added to the sanctions list in January 2024, over allegations of providing support to the IRGC Quds Force and its proxy militia groups in Iraq, Syria and Lebanon.

The removal of Fly Baghdad from the sanctions list was carried out following an internal review process, according to a department official.

“This does not indicate any shift in US policy towards the Government of Iran, the Islamic Revolutionary Guard Corps Quds Force, any designated terrorist organisation, or any individual who supports or acts on behalf of those entities,” said the official, who declined to be named, as quoted by several media outlets.

US Treasury Secretary Scott Bessent said on Tuesday (4/8) that a deal with Iran to reopen the Strait of Hormuz could potentially be reached within the coming days.

The US and Iran are currently engaged in talks regarding the reopening of the Strait of Hormuz after both sides temporarily halted attacks late last week.