The US Treasury Department removed sanctions against the Iraqi budget airline Fly Baghdad and two of its aircraft on Wednesday, reversing a 2024 designation based on the finding that the airline had supported Iran’s Islamic Revolutionary Guard Corps’ Quds Force as Washington and Iran are on the verge of an accord to reopen the Strait of Hormuz.
The airline and its aliases had been sanctioned over suspected ties to the IRGC’s overseas operations arm and the Quds Force which Washington designates as a foreign terrorist organization.
The original notice earlier announced in January 2024 that the airline was facilitating the Quds force and its proxy groups in Iraq, Syria and Lebanon.
The notice issued today did not detail why the airline and aircraft were removed from the sanctions list. The significant move comes as US and Iranian officials signal that they are nearing an agreement to reopen the Strait of Hormuz after persistent turmoil.
Iran has constantly underscored that any broader understanding with Washington would require relief from US sanctions.
Trump told reporters on Tuesday that Iran and the United States held “very good discussions,” and that a deal could happen tomorrow or the next day.
Nonetheless, Iranian officials have not confirmed talks with the United States that they have ratified agreements with Oman, which borders the Strait of Hormuz alongside Iran.
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