US Treasury lifts sanctions on Iraqi airline Fly Baghdad and its owner

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The U.S. Treasury Department removed Iraqi airline Fly Baghdad and its owner from its sanctions list on Tuesday, updating its counterterrorism designations page. The decision, while focused on Iraq, occurred as U.S.-Iran negotiations continue.
The Delisting
The U.S. Treasury Department removed Iraqi airline Fly Baghdad, its aircraft, and company owner from the sanctions list on its counterterrorism page. The update late Tuesday marked a reversal of sanctions imposed in January 2024. Fly Baghdad was designated for allegedly providing support to the Islamic Revolutionary Guard Corps’ Quds Force.
Iraq-Iran Dynamics
The delisting, while technically an Iraq-focused measure, drew notice because of the airline’s alleged ties to Iran. Washington sanctioned Fly Baghdad amid a broader campaign against networks aiding the IRGC. The removal comes as U.S. and Iranian officials engage in ongoing negotiations, though the step is not directly linked to the talks.