The United States has announced sanctions on Iraqi low-cost airline Fly Baghdad, alleging that the airline provided assistance to Iran's Revolutionary Guards and proxies. These actions come as a response to a surge in attacks by Iran-backed groups against US personnel in Iraq and Syria, as well as rising tensions in the Middle East due to Israel's offensive in Gaza. The US Treasury Department has stated that Fly Baghdad supported the Quds Force by delivering material and personnel throughout the region, including weapons.

NEW: US Treasury sanctions Iraqi airline Fly Baghdad and its CEO "for providing assistance to the IRGC-QF and its proxy groups in Iraq, Syria, and Lebanon."

Three leaders and supporters of Kata'ib Hezbollah also designated. pic.twitter.com/C8vRgeeDN0

— Elizabeth Hagedorn (@ElizHagedorn) January 22, 2024

The airline was also accused of being involved in the transfer of hundreds of Iraqi fighters in support of Iranian proxies' attacks on Israel. In addition to the sanctions on Fly Baghdad and its CEO Basheer Abdulkadhim Alwan al-Shabbani, the US has also targeted leaders of a pro-Iranian Iraq militia and a company allegedly used to launder money. The property of designated individuals in the United States is blocked and must be reported, and financial institutions and others are also restricted in their transactions with sanctioned entities.

According to Treasury Under Secretary for Terrorism and Financial Intelligence Brian Nelson, Iran and its proxies have sought to abuse regional economies and use seemingly legitimate businesses as cover for funding and facilitating their attacks. The US State Department also emphasized the threat posed by the Quds Force and Iran-aligned militia groups to the stability of the Middle East region. The United States has stated its commitment to exposing and taking actions against individuals and groups that engage in illegal activities to support terrorist groups and destabilize the region.