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Washington Removes Sanctions on Iraq's Fly Baghdad Airline

Treasury said the airline showed major operational changes during a review, but it kept sanctions tied directly to owner Basheer Abdulkadhim Alwan al-Shabbani.

  • On Wednesday, the US Treasury lifted sanctions on Iraq's Fly Baghdad Airlines and two Boeing 737 aircraft following an administrative reconsideration process.
  • Washington originally designated the airline in January 2024 for alleged links to Iran's Islamic Revolutionary Guard Corps- Quds Force and its proxy groups in Syria, Iraq, and Lebanon.
  • According to a Treasury official, the airline was delisted after demonstrating 'major changes to their operations' through the administrative reconsideration process.
  • Despite this relief, the US Treasury maintained sanctions against CEO Basheer Abdulkadhim Alwan Al-Shabbani, now attributing his designation directly to the IRGC-QF.
  • Treasury officials clarified the removal is a routine legal outcome, stating, 'This is not indicative of any shift in US policy toward the Government of Iran, the Islamic Revolutionary Guard Corps-Quds Force.
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Mehr News Agency broke the news in Tehran, Iran (Islamic Republic of) on Wednesday, August 5, 2026.
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