US lifts sanctions on Iraqi airline Fly Baghdad over IRGC links
The US Treasury removed Fly Baghdad and two aircraft from its terrorism sanctions list, citing operational changes, while maintaining sanctions on the company's owner.
The United States Treasury Department on Wednesday lifted counter-terrorism sanctions on Iraq's Fly Baghdad Airlines and two of its Boeing 737 aircraft, reversing a 2024 designation that had linked the carrier to Iran's Islamic Revolutionary Guard Corps Quds Force. The Treasury's Office of Foreign Assets Control removed Fly Baghdad, along with its aliases Iraq Express and Fly Baghdad Airlines, from the Specially Designated Nationals list. Two aircraft with tail numbers YI-BAF and YI-BAN were also delisted. However, sanctions remain in place against the company's owner, Basheer Abdulkadhim Alwan al-Shabbani, whose designation was updated to reflect a direct link to the IRGC Quds Force rather than to the airline itself.
A US Treasury official, speaking on condition of anonymity, told AFP that the airline had been removed after going through the department's administrative reconsideration process. "FBA has demonstrated major changes to their operations such that their listing is no longer warranted," the official said, adding that the airline "has addressed sanctionable conduct." No specific details were provided on the nature of those changes. The official stressed that the removal was "not indicative of any shift in US policy toward the Government of Iran, the Islamic Revolutionary Guard Corps—Qods Force, any designated terrorist organization, or any person who supports or acts on behalf of any of these." The official also said that sanctions could be reimposed at any time.
The move comes as US and Iranian officials signal that they are nearing an agreement to reopen the Strait of Hormuz following weeks of disruption, according to an Al-Monitor report. The same report noted that Iran has consistently said any broader understanding with Washington would require relief from US sanctions. President Donald Trump told reporters on Tuesday night that Iran and the United States had held "very good discussions" that day, adding that a deal "could happen tomorrow or the next day." Reuters reported that a proposed arrangement between Iran and Oman would give Tehran control over ships entering the Gulf through the Strait of Hormuz, citing a senior Iranian source and two regional officials.
The original sanctions were imposed in January 2024, with Washington alleging that Fly Baghdad provided support to the IRGC's Quds Force and its proxy groups in Iraq, Syria and Lebanon. The Treasury official clarified that the delisting was unrelated to US negotiations with Iran over a possible deal to end hostilities in the Gulf. The official also noted that the removal was part of OFAC's standard process to reconsider sanctions after behaviour changes. No further details on the specific operational changes that warranted the lifting of sanctions have been released.
| Atlantic / Anglosphere press | 0.00 | neutral |
|---|---|---|
| Iranian & allied press | −0.20 | neutral |
| Russian & CIS press | +0.50 | aligned |
The removal is a routine administrative correction; the owner remains sanctioned, and US policy is unchanged.
By emphasizing that the owner remains sanctioned and calling it a routine administrative step, the narrative depoliticizes the action and prevents it from being seen as a policy shift.
The atlantica bloc omits any reference to the ongoing US-Iran negotiations or Trump's positive comments, which the Russian bloc emphasizes as context.
This is a minor technical adjustment, not a policy shift; do not read too much into it.
They use direct quotes from US officials and detailed analysis of the OFAC update to deflate any false expectations, framing the event as a non-story.
The iraniana bloc omits any mention of the diplomatic talks between the US and Iran that the Russian bloc links to the sanctions removal, thereby downplaying the strategic significance.
The US is giving ground; sanctions relief signals a turning point in talks.
By linking the OFAC update to the diplomatic calendar and Trump’s optimistic statements, the narrative amplifies the action into a major political development, suggesting a causal relationship between talks and the delisting.
The Russian bloc omits the qualification that the owner remains sanctioned and that the US Treasury described the removal as routine, thereby presenting the action as more significant than it is.
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