US Treasury Lifts Sanctions on Fly Baghdad Airlines

The United States Department of the Treasury removed counterterrorism sanctions from Iraq's Fly Baghdad Airlines, Iraq Express, and two Boeing 737 aircraft on August 5, 2026. The airline had been sanctioned in January 2024 for allegedly providing support to the Islamic Revolutionary Guard Corps's Quds Force and its proxies in Iraq, Syria, and Lebanon.

Officials stated the delisting followed an administrative reconsideration process by the Office of Foreign Assets Control, concluding that the carrier had addressed sanctionable conduct and demonstrated major operational changes. While the airline was removed from the Specially Designated Nationals list, the Treasury maintained sanctions against CEO and owner Basheer Abdulkadhim Alwan al-Shabbani. The government modified his listing to attribute the designation directly to the IRGC-QF rather than the airline.

The Treasury Department emphasized that this action is a routine administrative result and does not indicate a shift in U.S. policy toward the Government of Iran or its designated terrorist organizations. Officials further clarified the move is not related to ongoing negotiations to end hostilities in the Gulf. Following the announcement, global crude oil prices declined, with West Texas Intermediate trading at $75.06 and Brent at $78.83 per barrel.