US Removes Fly Baghdad From Sanctions List

The decision follows an administrative reconsideration process that assessed the airline’s current business practices. A Treasury official stated that Fly Baghdad successfully demonstrated significant structural shifts in its operations, rendering the previous designation unnecessary. Despite this reversal, the department clarified that the move does not signal a broader policy pivot regarding Iran or its regional proxy groups.

Washington initially targeted the carrier alongside two of its aircraft, alleging deep ties to the IRGC’s Quds Force and its paramilitary reach into Syria, Lebanon, and Iraq. While the airline regains access to the financial system, the case against Al-Shabbani continues, highlighting a targeted approach to enforcement that separates corporate entities from specific individuals linked to sanctioned activities.