Archive · 6 Aug 2026
US Lifts Sanctions on IRGC-Linked Airlines Amid Iran Tensions
The United States and Iran are having a big disagreement, like two countries in a fight.
Part of the fight involves special rules called sanctions, which stop companies from doing business with America.
The United States had put sanctions on some airlines connected to Iran's military group, the IRGC.
Now, America has removed sanctions from three of those airlines, including one from Iraq called Fly Baghdad.
America says this is because Fly Baghdad changed how it operates and no longer needs to be punished.
But America also says this does not mean it is becoming friends with Iran.
A few days earlier, President Trump stopped a plan to attack Iran.
Iran has been blocking a very important water road called the Strait of Hormuz, where many ships carry energy.
Countries like Saudi Arabia, Qatar, and the United Arab Emirates asked for peace, and Oman is helping both sides talk.
The US Treasury Department lifted counterterrorism sanctions on three airlines and two aircraft linked to Iran's Islamic Revolutionary Guard Corps (IRGC).
Sanctions were removed from Iraqi carrier Fly Baghdad and two of its aircraft, but restrictions remain against Basheer Abdulkadhim Alwan al Shabbani, previously identified as its owner.
A US Treasury official said Fly Baghdad 'has demonstrated major changes to their operations such that their listing is no longer warranted.'
The move came days after President Donald Trump announced the suspension of planned US military strikes on Iran on August 1, following requests from Saudi Arabia, Qatar and the UAE and diplomatic efforts led by Oman.
Since Trump launched a war against Iran in late February, Washington has killed senior Iranian leaders, while Iran has largely blocked the Strait of Hormuz, through which about one-fifth of the world's energy supplies normally pass.
- Who
- US President Donald Trump, the US Treasury Department, Iran's Foreign Ministry, and airlines linked to Iran's Islamic Revolutionary Guard Corps, including Iraq's Fly Baghdad.
- What
- The US lifted counterterrorism sanctions on three IRGC-linked airlines and two aircraft, including Iraq's Fly Baghdad, days after Trump suspended planned military strikes on Iran.
- When
- The Treasury update was published on Wednesday, July 05; Trump announced the strike suspension on August 1.
- Where
- United States, Iran, Iraq, and the Strait of Hormuz.
- Why
- Fly Baghdad demonstrated major operational changes, and the move followed diplomatic efforts led by Oman plus requests from Saudi Arabia, Qatar and the UAE.
Washington's Position
Tehran's Position
Reasons for lifting sanctions
Washington's Position
The Treasury removed Fly Baghdad through its administrative reconsideration process because the airline showed major operational changes, and insisted the move does not indicate any shift in US policy toward Iran, the IRGC or the Quds Force.
Tehran's Position
Iran says it is continuing talks and exchanging views with Pakistan and Qatar, suggesting a diplomatic path remains possible despite Washington's statements.
The war and the Strait of Hormuz
Washington's Position
Washington launched a war against Iran in late February, killing senior Iranian leaders and seeking to weaken Iran's economy through sanctions and military action, while backing efforts to fully reopen the Strait of Hormuz.
Tehran's Position
Tehran has largely blocked the Strait of Hormuz, a key global energy route carrying about one-fifth of the world's energy supplies, and has targeted US allies in the region in response.
- Sanctions lifted
- Three IRGC-linked airlines and two aircraft
- Iraqi carrier
- Fly Baghdad (FBA) and two of its aircraft
- Treasury update date
- Wednesday, July 05
- Original sanctions on Fly Baghdad
- January 2024, over alleged support to the IRGC's Quds Force and proxy groups in Iraq, Syria and Lebanon
- Remaining restrictions
- Basheer Abdulkadhim Alwan al Shabbani, identified as Fly Baghdad's owner
- Strike suspension
- Announced by President Donald Trump on August 1
- Strait of Hormuz
- About one-fifth of the world's energy supplies normally pass through it
