US Removes Sanctions Against Iraq’s Fly Baghdad Airline

The United States has removed sanctions from Iraqi airline Fly Baghdad, citing operational changes, though the company’s owner remains under federal penalties.

On Wednesday, the United States removed sanctions from Fly Baghdad, an Iraqi carrier previously accused of connections to the Islamic Revolutionary Guard Corps (IRGC) of Iran. While the Treasury Department cleared the airline and two of its planes, it kept penalties in place against the owner, Basheer Abdulkadhim Alwan al-Shabbani.

Washington initially sanctioned the firm and its leadership in January 2024. Officials claimed the airline assisted the IRGC’s Quds Force and various proxies throughout Lebanon, Syria, and Iraq. A representative from the US Treasury noted that the decision followed a formal review process. The official stated that Fly Baghdad showed significant operational adjustments that rendered the sanctions unnecessary. However, the government emphasized that this move does not signal a change in broader policy toward Iran, the Quds Force, or any groups labeled as terrorists by the US.

Tensions between the nations remain high, particularly as the US continues efforts to impact Iran’s economy. These ongoing geopolitical conflicts, including disputes over energy routes like the Strait of Hormuz and nuclear policy, have made diplomatic resolutions difficult to achieve.

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