Archive · 6 Aug 2026
US Treasury lifts sanctions on Iraq's Fly Baghdad Airlines
The United States government, through its Treasury Department, decided to stop punishing an airplane company from Iraq called Fly Baghdad Airlines.
In 2024, the US had placed special rules, called sanctions, on this airline.
The US did this because it thought the airline might be connected to a powerful group in Iran.
Now, after checking again, the US says the airline has changed how it does business.
Because of these changes, the US is taking the airline off its punishment list.
Two of the airline's airplanes were also removed from the list.
The office that did the checking is a special US agency that watches money and trade.
The US says this decision does not mean it is changing how it feels about Iran.
The airline could be put back on the list if it does something wrong again.
The US did not say exactly what changes the airline made.
The US Treasury Department removed Iraq's Fly Baghdad Airlines and two of its aircraft from its counter-terrorism sanctions list.
The sanctions, imposed in 2024, had cited alleged links between the airline and Iran's Islamic Revolutionary Guard Corps-Quds Force (IRGC-QF).
A Treasury official said the carrier made major operational changes and addressed the conduct that led to its designation.
The decision followed a review by the Office of Foreign Assets Control (OFAC), which periodically reassesses sanctions designations.
The Treasury stressed the move does not signal a policy shift on Iran, and sanctions could be reimposed at any time.
- Who
- The US Treasury Department (including its Office of Foreign Assets Control) and Iraq's Fly Baghdad Airlines (FBA).
- What
- The US lifted counter-terrorism sanctions on Fly Baghdad Airlines and two of its aircraft after determining the carrier changed its conduct.
- When
- On Wednesday, when the Treasury Department announced the removal; the original sanctions were imposed in 2024.
- Where
- United States and Iraq.
- Why
- Because Fly Baghdad Airlines demonstrated major operational changes and addressed the sanctionable conduct that led to its 2024 designation; the move was stressed not to signal a policy shift on Iran.
- Target
- Iraq's Fly Baghdad Airlines (FBA) and two of its aircraft
- Action
- Removal from the US counter-terrorism sanctions list
- Sanctions imposed
- 2024
- Original reason
- Alleged links to Iran's Islamic Revolutionary Guard Corps-Quds Force (IRGC-QF)
- Reviewing body
- US Treasury's Office of Foreign Assets Control (OFAC)
- Reason for delisting
- Major operational changes; airline addressed sanctionable conduct
- Policy note
- Does not signal a policy shift on Iran
- Future risk
- Sanctions could be reimposed at any time