Iraqi Airways resumes flights to Iran amid easing regional tensions

Iraqi Airways has resumed flights to Iran following a suspension due to the ongoing conflict in the region, according to Iran’s Civil Aviation Organization as reported by official media. The airline has initiated nine weekly flights to Rasht, with plans to restart services to Tehran and Mashhad next week. This move comes after Iraqi airspace, previously closed due to missile and airstrike risks, has been partially reopened, indicating a potential de-escalation in regional tensions. The resumption of flights is being interpreted as a sign that civilian aviation is gradually moving back into operation. Key Takeaways Iraqi Airways’ resumption of flights suggests a reduction in immediate military threats, indicating a partial reopening of airspace. Market pricing for Iran’s full airspace closure by August 31 has decreased to 2.4% YES, down from 6% a day ago, reflecting a shift in perceived risk. The December 31 market remains more elevated at 30.5% YES, suggesting ongoing uncertainty about long-term regional stability. What to Watch Observers will be looking to see if further flight resumptions occur and if other airlines follow suit, as this could indicate a broader normalization of a...