US lifts sanctions on Fly Baghdad, previously linked to Iran's IRGC

Aug 5, 2026

A bronze seal for the Department of the Treasury is shown at the U.S. Treasury building in Washington, U.S., January 20, 2023. REUTERS/Kevin Lamarque — FILE PHOTO: A man stands outside the office of Fly Baghdad airline, in Baghdad, Iraq January 23, 2024. REUTERS/Ahmed Saad/File Photo — AHMED SAAD

Aug 5 (Reuters) - The U.S. Treasury said on Wednesday it had removed counter-terrorism sanctions from Iraq's Fly Baghdad Airlines and two aircraft that were imposed in 2024 over links to Iran's Islamic Revolutionary Guard Corps Quds Force, citing changes in the airline's behavior.

A Treasury official said that the move was not indicative of any shift in U.S. policy towards Iran's government, the Islamic Revolutionary Guards or any organization designatedas terrorist and was unrelated to U.S. negotiations with Iran over a possible deal to end hostilities in the Gulf.

The removal of Fly Baghdad Airlines Co (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 behavior 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."

No details were provided on the specific FBA changes that warranted the lifting of sanctions, and the official said that sanctions could be reimposed at any time.

(Reporting by Daphne Psaledakis, Ismail Shakil and David Lawder; Editing by Sanjeev Miglani)

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