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World News Updated Aug 5, 2026

US Removes Sanctions on Three IRGC-Linked Entities, Treasury Reveals

The US Treasury has removed Iraqi airline Fly Baghdad and two of its passenger aircraft from its sanctions list. The delisting covers three corporate designations but does not fully roll back sanctions on the entity. The airline's owner, Basheer Abdulkadhim Alwan Al-Shabbani, remains under active US sanctions. The move comes after fresh sanctions targeting networks linked to Iran's Mahan Air.

US removes sanctions from three IRGC-linked entities, Treasury website shows

Washington, DC, August 5

The United States Treasury Department's Office of Foreign Assets Control has removed Iraqi commercial carrier Fly Baghdad and two of its passenger aircraft from its Specially Designated Nationals list, after previously targeting the airline over suspected links to Iran's Islamic Revolutionary Guard Corps.

In an official update on its website, OFAC delisted the capital-based aviation entity across its three registered corporate designations: Fly Baghdad Airlines Company, Fly Baghdad, and Iraq Express.

Additionally, two Boeing 737 commercial jets operated by the carrier, bearing tail identifiers YI-BAF and YI-BAN, were removed from the sanctions register.

The US Treasury Department offered no formal rationale for the decision.

The move, however, does not represent a full rollback of sanctions associated with the entity. Basheer Abdulkadhim Alwan Al-Shabbani, an Iraqi national named as the airline's owner in the original listing, remains under active US sanctions.

Authorities amended Al-Shabbani's entry on the blacklist so that his legal designation now directly points to the IRGC's elite foreign wing, the Quds Force, rather than referencing Fly Baghdad.

Washington originally penalised the 2014-founded airline, its fleet assets, and its principal executive in January 2024, asserting that the carrier facilitated logistical support to the IRGC-Quds Force and allied networks across Iraq, Syria, and Lebanon.

This administrative action follows less than a week after US authorities enacted fresh sanctions aimed at international networks accused of assisting Iran's Mahan Air, an entity Washington maintains is connected to the IRGC.

While the US government has not publicly linked the move to broader regional diplomatic initiatives, the latest removals point to an evolving posture by Washington towards select aviation entities tied to Tehran.

— ANI

Reader Comments

Priya S

Why is there no rationale given? The lack of transparency from the Treasury is concerning. For a country that talks about rules-based order, this selective approach creates confusion. However, from an Indian perspective, stability in Iraq directly affects our oil imports and the large Indian diaspora working there.

James A

Washington's foreign policy seems all over the place right now. They slam new sanctions on Mahan Air one week and quietly delist Fly Baghdad the next. Its like they are trying to keep pressure on Tehran without destabilizing Iraq's fragile economy. Makes you wonder what quiet back-channel deals are happening.

Vikram M

As an Indian, I find it intriguing how the US juggles its Middle East policy. This move could be an attempt to reduce friction with Baghdad, especially since Iraq relies on Iranian gas for power. For India, a stable Iraq means stable oil prices, so we welcome any diplomatic easing. But the IRGC link still bothers me.

Sarah B

The US removing sanctions on these entities while keeping the owner listed is a tactical move. It provides some relief to Iraqi civilians who rely on this airline for travel, without letting the main figure off the hook. From our perspective, its all about maintaining leverage while managing humanitarian concerns.

Nisha Z

Typical American realpolitik. They delist the aircraft to look humane, but the owner remains sanctioned. Meanwhile, the IRGC-Quds Force link stays highlighted. I just hope our government in Delhi does not get pulled into these geopolitical games, we need to prioritize our own strategic interests. 🇮🇳

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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