US lifts sanctions on Fly Baghdad, previously linked to Iran’s Revolutionary Guards
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A Treasury official said the US move was unrelated to US negotiations with Iran over a possible deal to end hostilities in the Gulf.
PHOTO: REUTERS
- The US Treasury has lifted counter-terrorism sanctions on Iraq’s Fly Baghdad Airlines and two aircraft due to changes in the airline’s behaviour.
- The move does not signal a change in US policy towards Iran or its designated terrorist organisations.
- Sanctions were removed after Fly Baghdad addressed sanctionable conduct, but they could be reimposed if necessary.
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WASHINGTON - The United States on Aug 5 lifted sanctions targeting Iraq’s Fly Baghdad airline, a company it had previously designated for alleged links to Iran’s Islamic Revolutionary Guard Corps (IRGC).
In an update to its website, the US Treasury lifted sanctions on Fly Baghdad and two of its aircraft, but maintained its sanctions against a man previously identified as the company’s owner, Basheer Abdulkadhim Alwan al-Shabbani.
Washington had originally designated the airline, its aircraft and owner in January 2024, alleging that it provided support to the IRGC’s Quds Force and its proxy groups in Iraq, Syria and Lebanon.
A Treasury official said that the move was not indicative of any shift in US policy towards Iran’s government, the Islamic Revolutionary Guards, or any organisation designated as terrorist, and was unrelated to US negotiations with Iran over a possible deal to end hostilities in the Gulf.
The removal of Fly Baghdad Airlines (FBA), Iraq Express and two Boeing 737 aircraft from the Treasury’s Specially Designated Nationals list was part of the Office of Foreign Assets Control’s process to reconsider sanctions after behaviour changes, the official said.
“FBA has demonstrated major changes to their operations such that their listing is no longer warranted,” the official said.
“They have addressed sanctionable conduct.”
Since US President Donald Trump launched a war against Iran in late February, Washington has killed the country’s top leadership and attempted to cripple its economy with sanctions and military strikes.
In retaliation, Tehran has virtually blocked the vital Strait of Hormuz through which about a fifth of the world’s energy supplies normally pass and targeted US allies in the region.
Negotiations to end the war have been stop-start, with the status of Iran’s nuclear programme and the imposition of potential tolls on the Strait being key sticking points. AFP, REUTERS

