US Removes Airline That Supported Iran Regime From Sanctions List

The US Treasury Department on Wednesday removed Iraqi airline Fly Baghdad Airlines Co., also known as Iraq Express, and two Boeing 737 aircraft from its sanctions list, The Jerusalem Post reported.

The airline came off the Office of Foreign Assets Control list of Specially Designated Nationals, the report said. CEO Basheer Abdulkadhim Alwan Al-Shabbani remains sanctioned, with the State Department claiming he still has ties to the IRGC.

A Treasury Department official said the move did not signal a shift in US policy toward Iran or the IRGC and was not linked to negotiations to end the conflict in the Middle East. The official said the delisting followed OFAC’s process to reconsider sanctions after behavior changes and stressed that Washington could reimpose sanctions on the airline at any time.

Fly Baghdad and Al-Shabbani had been under US sanctions since 2024. At the time, the Treasury Department said the airline supported IRGC operations by transporting weapons and personnel, including ballistic missiles, rifles and other tools of war, according to a press release cited in the report.

OFAC says the SDN list covers “individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries” and “individuals, groups and entities... designated under programs that are not country-specific.” Targets have their assets blocked, US entities are barred from doing business with them, and sanctioned parties can petition for removal; separately, Fly Baghdad remains banned from the EU Air Safety List, the report said.