On Wednesday, August 3, 2026, the United States lifted sanctions targeting Iraq's Fly Baghdad airline, which had been designated in January 2024 for alleged ties to Iran's Islamic Revolutionary Guard Corps (IRGC) and its Quds Force. The airline had denied these accusations.
According to an update on the US Treasury's website, sanctions on Fly Baghdad and two of its aircraft were removed. However, sanctions against Basheer Abdulkadhim Alwan al-Shabbani, previously identified as the company's owner, remain in place.
A US Treasury official, speaking anonymously to AFP, explained that Fly Baghdad was delisted after undergoing the department's administrative reconsideration process. The official stated, "FBA (Fly Baghdad Airlines) has demonstrated major changes to their operations such that their listing is no longer warranted."
The Treasury clarified that this removal does not signal any change in US policy toward Iran, the IRGC-Quds Force, designated terrorist organizations, or their supporters.
Since late February, following actions initiated by former US President Donald Trump, Washington has engaged in a conflict with Iran involving targeted killings of Iranian leadership and economic sanctions. In response, Tehran has restricted access to the Strait of Hormuz, a critical passage for global energy supplies, and targeted US allies in the region. Negotiations to resolve the conflict have faced challenges, particularly concerning Iran's nuclear program and control over the Strait.
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