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

By Thomson Reuters Aug 5, 2026 | 9:21 AM

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 designated as 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)