US Treasury Removes Counter-Terrorism Sanctions from Fly Baghdad

A Treasury official emphasized that the removal of Fly Baghdad and Iraq Express from the Specially Designated Nationals list does not signal a broader shift in American policy toward the Iranian government or its affiliated military entities. The department stated that the airline demonstrated significant operational adjustments, justifying the reversal of the punitive measures imposed earlier this year.

While the government declined to disclose the specific modifications made by the carrier, the official noted that the agency maintains the authority to reimpose sanctions if the airline returns to prohibited conduct. The move remains strictly tied to the Office of Foreign Assets Control's periodic review process rather than any ongoing diplomatic negotiations regarding regional hostilities.