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U.S. Treasury revokes some Iran-linked sanctions, removes Fly Baghdad from OFAC list

U.S. Treasury revokes some Iran-linked sanctions, removes Fly Baghdad from OFAC list

An administrative review led Washington to lift sanctions on the Iraqi airline, while U.S. officials said the move did not signal a broader shift in policy toward Iran or designated groups.

Fact Check
The primary OFAC source (ofac.treasury.gov/recent-actions/20260805) directly confirms all elements of the claim: an August 5, 2026 action titled 'Counter Terrorism Designations Removals and Update' removed Fly Baghdad Airlines Company (described as formerly linked to IRGC-Qods Force) from the SDN List, along with two aircraft, and updated a related SDN listing. The OFAC recent-actions index corroborates the date and action title, and a secondary newsflash confirms the Iran-related framing.
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Summary

The United States has lifted sanctions on Iraqi carrier Fly Baghdad after an administrative review, removing the airline from the U.S. Treasury Department's sanctions list despite its earlier designation over alleged links to Iran's Islamic Revolutionary Guard Corps Quds Force. The sanctions had been imposed in January 2024 as part of a broader U.S. campaign targeting entities accused of supporting the IRGC and its Quds Force in Iraq, Syria and Lebanon. U.S. officials said the delisting was a case-specific administrative step and did not represent a broader change in Washington's policy toward Iran, the Quds Force, designated terrorist organizations, or their supporters. The move comes as investors assess whether isolated sanctions relief could have wider implications for regional tensions and commercial activity, even as officials insist it should not be read as a policy shift.

Terms & Concepts
  • OFAC: The U.S. Treasury Department office that administers and enforces U.S. sanctions programs.
  • Islamic Revolutionary Guard Corps Quds Force: A branch of Iran's Revolutionary Guard that has been a focus of U.S. sanctions and counterterrorism measures.
  • sanctions list: An official register of individuals or entities subject to restrictions such as asset freezes or limits on transactions.