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US-Iran truce on cards? Washington lifts sanctions on three IRGC linked entities

US-Iran truce on cards? Washington lifts sanctions on three IRGC linked entities

An Iranian woman walks past an anti-US billboard at Enghelab Square in central Tehran on August 3, 2026. Photograph: (AFP)

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The United States lifted counterterrorism sanctions on three IRGC-linked entities, including Fly Baghdad, while insisting the move does not signal any change in its broader policy toward Iran.

The United States has lifted counterterrorism sanctions on two aircraft and three airlines linked to Iran's Islamic Revolutionary Guard Corps, according to an update published on the US Treasury Department's website on Wednesday (July 05).

The Treasury also removed sanctions on Iraqi carrier Fly Baghdad and two of its aircraft. However, restrictions remain in place against Basheer Abdulkadhim Alwan al Shabbani, who had previously been identified by Washington as the airline's owner.

The United States first imposed sanctions on Fly Baghdad, its aircraft and its owner in January 2024, alleging that the airline had provided support to the IRGC's Quds Force and its proxy groups operating in Iraq, Syria and Lebanon.

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"FBA (Fly Baghdad Airlines) has demonstrated major changes to their operations such that their listing is no longer warranted," a US Treasury official was quoted as saying by AFP.

The official added that the decision "is not indicative of any shift in US policy toward the Government of Iran, the Islamic Revolutionary Guard Corps, Qods Force, any designated terrorist organisation, or any person who supports or acts on behalf of any of these."

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The latest move comes days after President Donald Trump announced the suspension of planned US military strikes on Iran on August 1. He said the decision followed requests from Saudi Arabia, Qatar and the United Arab Emirates, along with diplomatic efforts led by Oman to reopen the Strait of Hormuz fully and address nuclear concerns.

Since President Trump launched a war against Iran in late February, Washington has killed senior Iranian leaders and sought to weaken the country's economy through sanctions and military action.

Iran says talks continue

In response, Tehran has largely blocked the Strait of Hormuz, a key global energy route through which about one-fifth of the world's energy supplies normally pass. Iran has also targeted US allies in the region.

Meanwhile, Iran's Foreign Ministry spokesperson said the country is exchanging views with Pakistan and Qatar.

The spokesperson also said there are no plans for Iran's foreign minister or parliament speaker to travel to Pakistan or Qatar.

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Ajaypal Choudhary

Driven by a deep interest in international politics and geo-economics, Ajaypal Choudhary writes on and analyses a wide range of subjects from geopolitics and the global economy to ...Read More