The United States lifts counter-terrorism sanctions on Iraq’s Fly Baghdad Airlines and two aircraft linked to the carrier, the U.S. Treasury says. The sanctions were imposed in 2024 after allegations that the airline provided assistance connected to Iran’s Islamic Revolutionary Guard Corps (IRGC) and the IRGC-Quds Force, including assistance to IRGC-related groups operating in Iraq, Syria and Lebanon. Fly Baghdad had denied the allegations.
A U.S. Treasury official says the removal is based on changes in the airline’s behavior and is not a signal of any shift in broader U.S. policy toward Iran’s government, the IRGC, or any organization designated as terrorist. The official also states the decision is unrelated to U.S. negotiations with Iran over a potential deal to end hostilities in the Gulf. Multiple outlets report the U.S. action takes place on Wednesday, after the airline’s January 2024 designation.