US Removes Sanctions on Iraqi Airline, Denies Easing Iran Sanctions

WASHINGTON:
The US Department of the Treasury has removed Iraqi commercial airline Fly Baghdad and two of its aircraft from its sanctions list linked to Iran’s Islamic Revolutionary Guard Corps (IRGC).

Fly Baghdad Airlines, also known as Iraq Express, and two of its Boeing 737 aircraft have been deleted from the Specially Designated Nationals (SDN) List, said a statement from the Office of Foreign Assets Control of the US Department of the Treasury on Wednesday (local time).

Fly Baghdad Airlines was originally designated in January 2024, on the allegation that it provided support to the IRGC’s Quds Force and its proxy militias in Iraq, Syria and Lebanon.

The change was made after going through an internal reconsideration process, according to an official with the department, reports Xinhua news agency.

“This is not indicative of any shift in US policy toward the Government of Iran, the Islamic Revolutionary Guard Corps-Quds Force, any designated terrorist organisation, or any person who supports or acts on behalf of any of these,” multiple media outlets quoted the anonymous official as saying.

US Treasury Secretary Scott Bessent said Tuesday (local time) that a deal with Iran could be reached within days to reopen the Strait of Hormuz.

The United States and Iran are now holding talks on reopening the Strait of Hormuz after the two sides paused attacks over the weekend.

Meanwhile, Iranian Foreign Ministry spokesperson Esmaeil Baghaei has said that Iran and Oman have made progress in talks on establishing a safe commercial shipping route through the Strait of Hormuz.

He also mentioned that Tehran has no plans for senior officials to visit Pakistan or Qatar this weekend.

Baghaei told reporters on Wednesday (local time) that Iran and Oman have reached an understanding on the geographical coordinates of the proposed route, and are finalising a joint statement outlining key agreed-upon points, provided that “certain third parties” do not hinder the process, according to a ministry press release.

Both countries have been holding consultations over the past two months on the proposed route, with Iranian authorities reviewing the technical, legal, security, and environmental dimensions, he said.

Baghaei said the strait was closed due to US and Israeli “military aggression” against Iran and the resulting security consequences for the region.

The bilateral understanding between Iran and Oman, by itself, does not mean that the strait has become safe for transiting vessels, as the US maritime blockade and other “aggressive and threatening” actions against Iran and its interests continue, he said.