Sanctions – US Removes Fly Baghdad From Iran-Linked Sanctions List
Sanctions – The United States has removed Iraqi carrier Fly Baghdad from its sanctions list in a decision that follows an internal review, while regional diplomatic efforts continue over maritime security in the Strait of Hormuz.
The US Department of the Treasury has officially removed Iraqi commercial airline Fly Baghdad and two of its Boeing 737 aircraft from its sanctions register connected to Iran’s Islamic Revolutionary Guard Corps (IRGC). The decision was announced by the Office of Foreign Assets Control (OFAC), which confirmed that the airline, also known as Iraq Express, has been deleted from the Specially Designated Nationals (SDN) List after a reassessment of the earlier designation.
Review Leads to Policy Update
Fly Baghdad was initially placed under US sanctions in January 2024. At the time, Washington alleged that the airline had assisted the IRGC’s Quds Force by supporting operations involving allied armed groups operating in Iraq, Syria, and Lebanon. According to a US Treasury official, the latest move follows an internal reconsideration process that examined the earlier designation and resulted in the airline’s removal from the sanctions database.
The official emphasized that the decision should not be interpreted as a broader change in Washington’s approach toward Iran or organisations linked to the IRGC. The administration maintained that its overall policy regarding Iran, designated terrorist groups, and individuals accused of supporting them remains unchanged despite the latest action involving the Iraqi airline.
Washington Continues Diplomatic Engagement
The announcement comes as US officials continue diplomatic discussions with Iran concerning regional maritime security. US Treasury Secretary Scott Bessent recently said that negotiations aimed at reopening the Strait of Hormuz could produce an agreement within days. The talks gained momentum after both countries halted military exchanges over the previous weekend, creating an opportunity for renewed dialogue.
The Strait of Hormuz remains one of the world’s most strategically significant shipping routes, carrying a substantial share of global energy exports. Any disruption in the passage has the potential to affect international trade and energy markets, making ongoing negotiations closely watched by governments and industry stakeholders alike.
Iran and Oman Advance Shipping Route Talks
Separately, Iran has reported progress in discussions with Oman on establishing a secure commercial shipping corridor through the Strait of Hormuz. Iranian Foreign Ministry spokesperson Esmaeil Baghaei said both countries have reached a common understanding regarding the proposed route’s geographical coordinates and are preparing a joint statement outlining the key areas of agreement.
Baghaei noted that the declaration would be released provided external factors do not interfere with the process. He added that Iranian authorities have spent the past two months examining the proposal from technical, legal, environmental, and security perspectives before moving toward a formal understanding with Oman.
Security Concerns Remain Unresolved
Despite the progress in bilateral discussions, Iranian officials cautioned that the Strait of Hormuz cannot yet be considered fully secure for international shipping. Baghaei argued that previous US and Israeli military actions against Iran had contributed to the regional security situation that affected maritime traffic through the waterway.
He further stated that the agreement reached with Oman alone does not eliminate broader security risks, pointing to what Tehran describes as continuing US maritime restrictions and other actions it considers hostile. According to Iranian officials, additional developments will be necessary before the shipping route can operate under stable regional conditions.
While diplomatic efforts continue, the removal of Fly Baghdad from the US sanctions list represents a separate administrative decision that follows an official review process rather than a shift in the broader US policy toward Iran.