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US Lifts Sanctions on Fly Baghdad After Two Years

August 7, 2026

2 min read

Key Takeaways

The US Treasury Department has lifted sanctions on Fly Baghdad.
The airline was accused of transporting fighters and weapons for Iran's IRGC.
Sanctions were lifted after Fly Baghdad made major operational changes.
The airline remains on the EU's Air Safety List.

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Strategic Implications

The lifting of sanctions may indicate a shift in US policy towards Iraqi airlines, but the Treasury Department suggests this decision is specific to Fly Baghdad's operational changes. The move could signal a willingness to re-engage with previously sanctioned entities that demonstrate compliance with US counterterrorism laws, which may have broader implications for the aviation industry in the region.

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What Happened

Iraqi Airline Removed From Terrorism Blacklist After Operational Changes

The US Treasury Department has removed Iraqi airline Fly Baghdad from its Specially Designated Nationals list, lifting sanctions imposed in 2024 over allegations of supporting Iran’s Islamic Revolutionary Guard Corps. The airline had been accused of transporting fighters, weapons, and money for the IRGC and allied militant groups, but a Treasury official said Fly Baghdad has made major changes to its operations and addressed the conduct that led to the sanctions. The decision does not affect separate EU restrictions, which ban Fly Baghdad from operating within the EU due to safety concerns. This development was first reported by AeroTime.

Source | Originally Published: August 6, 2026

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