US lifts sanctions on Fly Baghdad, linked to Iran’s IRGC

The United States has lifted sanctions on Fly Baghdad, an airline previously linked to Iran’s Islamic Revolutionary Guard Corps (IRGC), according to a report from Reuters. This decision follows an administrative review and comes amid ongoing tensions between the U.S. and Iran, with Iraq often caught in the middle due to regional militia networks. The sanctions, initially imposed in January 2024, were part of a broader U.S. campaign against entities allegedly supporting the IRGC and its Quds Force in Iraq, Syria, and Lebanon. While the U.S. government stated that this move does not indicate a broader policy shift towards Iran, markets are scrutinizing the implications for regional dynamics, particularly regarding the potential lifting of the Iranian blockade. Key Takeaways The removal of sanctions on Fly Baghdad appears consistent with scenarios where tensions between the U.S. and Iran might ease. Market pricing suggests a potential increase in the likelihood of the U.S. announcing an end to the Iranian blockade by specific dates, with odds rising significantly over the past week. The delisting is described by U.S. officials as not indicative of a broader change in policy, yet marke...