Overview
- The Treasury's Office of Foreign Assets Control removed Fly Baghdad and two Boeing 737s from the Specially Designated Nationals list on Wednesday after an administrative reconsideration of the airline.
- Officials said Fly Baghdad showed major operational changes that made its listing no longer warranted while maintaining sanctions on the person previously identified as the carrier's owner.
- The delisting covers the carrier and two specific aircraft but does not clear past allegations that the airline had provided support to Iran’s IRGC Quds Force when it was designated in January 2024.
- Reporting shows the action came alongside diplomatic signals and a reported Iran–Oman proposal about control of ship movements through the Strait of Hormuz as negotiators press for a deal.
- OFAC notices typically give little detail so the move raises questions about transparency and could be used as a targeted confidence measure in talks while the United States keeps other Iran-related sanctions in place.