US Treasury lifts sanctions on two Iraqi airlines, warns removal is not permanent

WASHINGTON, United States — The U.S. Treasury Department announced the lifting of sanctions on two Iraqi airlines, including Fly Baghdad and Iraqi Airways, following an independent administrative review. Treasury’s Office of Foreign Assets Control removed Fly Baghdad, Iraqi Express and two Boeing 737 aircraft from the sanctions list. The department stressed that the decision does not signal any change in Washington’s broader policy toward Iran or the Iranian Revolutionary Guard Corps-linked Quds Force. The sanctions had been imposed in 2024 on allegations that the airlines provided services and support linked to Iran’s Quds Force. Giji O’Connell, a spokesperson for Treasury’s Office of Counterterrorism and Financial Intelligence, said the delisting came after a comprehensive administrative assessment of the designations. Treasury emphasized that the removal does not affect U.S. core sanctions on Iran or the Revolutionary Guard, nor restrictions on the country’s oil and financial sectors. The department also cautioned that delisting does not grant permanent protection, noting that OFAC retains authority to redesignate the entities if the original grounds are reconfirmed. No further details were immediately available on what triggered the administrative review.