The US Treasury Department has removed Iraqi airline Fly Baghdad and two of its passenger aircraft from its sanctions list, according to an update on the agency’s website. The move marks a change from earlier US action that had targeted the carrier over suspected links to Iran.

The delisting was made by the Treasury’s Office of Foreign Assets Control, which manages the Specially Designated Nationals and Blocked Persons list. While Fly Baghdad and the two aircraft are no longer listed, the airline’s owner, Basheer Al-Shabbani, remains under active US sanctions.

The update is notable because the airline had previously faced US penalties tied to concerns about connections involving Iran-linked networks. The latest Treasury action suggests a narrower sanctions position now applies, at least in relation to the company and the two aircraft named in the listing change.

US sanctions decisions are closely watched across the region because they can affect aviation operations, financial transactions and international business ties. In this case, the Treasury website change indicates relief for Fly Baghdad itself, even as sanctions remain in place against its owner.