US Treasury Grants Limited Exemption for Flights Between Iran and Najaf

The airport's media office

Najaf International Airport.

The US Department of the Treasury has issued a limited exemption allowing specific air travel between Iran and the Iraqi city of Najaf, subject to conditions and regulations set by Washington.

In a statement issued on Tuesday, the department said the exemption allows certain flights between Iran and Najaf to continue, while stressing that it does not amount to a lifting of US sanctions on Iranian airlines.

Under the licence, numbered IA-2026-1516078-1, Iraqi Airways, its affiliated service providers and US persons acting on its behalf are authorised to carry out transactions necessary to operate the approved flights.

The licence sets out strict conditions governing the flights. They must depart from and return to Najaf International Airport and may only be used to transport Iranian passengers travelling to Iraq for religious pilgrimage.

The measure therefore represents a specific exemption for a defined purpose and period rather than a broader easing of US restrictions on Iran-related transactions.

The licence will remain in effect until the authorised transactions are completed or 28 October 2026, whichever comes first. The US Treasury's Office of Foreign Assets Control (OFAC) retains the authority to amend or revoke the licence at any time.

The authorisation also places restrictions on the people and goods that may be transported. It prohibits the bulk transportation of cash and the shipment of goods intended for Iranian intelligence agencies, military forces or law-enforcement bodies.

Iraqi Airways is also prohibited from providing transport services to individuals or entities subject to US sanctions within the categories covered by the restrictions.

The licence limits permitted cargo to passengers' personal belongings and equipment or other items necessary for the aircraft's security, safety and operation. Restrictions also remain on the export or re-export of goods, technology or software to Iran unless specifically authorised under the licence.

A key provision makes the continuation of the exemption conditional on Iraq complying with restrictions governing Iranian flight operations in Iraqi airspace. The licence states that it may be amended or revoked if the conditions governing the entry or transit of Iranian flights through Iraqi airspace are not met, except where such flights are covered by the authorisation.

The licence also imposes financial and reporting requirements on Iraqi Airways. The airline must retain records of all transactions covered by the authorisation for 10 years and submit a report to OFAC within 10 business days of the licence's expiry.

The report must include the number of passengers transported on authorised flights, their names and passport numbers, as well as details of funds spent by Iraqi Airways in Iran on fuel, maintenance, airport services and other flight-related expenses.

The exemption follows punitive measures announced by the US Treasury on 8 September, targeting 36 entities linked to Iran's aviation sector, including 27 Iranian airlines, as part of Washington's wider campaign known as "Operation Economic Outcast".

At the time, the Treasury said the sanctions targeted networks it alleged were being used by Iran to transport weapons, personnel and cargo that Washington considers illicit. The US Department of the Treasury has issued a limited exemption allowing specific air travel between Iran and the Iraqi city of Najaf, subject to conditions and regulations set by Washington.

In a statement issued on Tuesday, the department said the exemption allows certain flights between Iran and Najaf to continue, while stressing that it does not amount to a lifting of US sanctions on Iranian airlines.

Under the licence, numbered IA-2026-1516078-1, Iraqi Airways, its affiliated service providers and US persons acting on its behalf are authorised to carry out transactions necessary to operate the approved flights.

The licence sets out strict conditions governing the flights. They must depart from and return to Najaf International Airport and may only be used to transport Iranian passengers travelling to Iraq for religious pilgrimage.

The measure therefore represents a specific exemption for a defined purpose and period rather than a broader easing of US restrictions on Iran-related transactions.

The licence will remain in effect until the authorised transactions are completed or 28 October 2026, whichever comes first. The US Treasury's Office of Foreign Assets Control (OFAC) retains the authority to amend or revoke the licence at any time.

The authorisation also places restrictions on the people and goods that may be transported. It prohibits the bulk transportation of cash and the shipment of goods intended for Iranian intelligence agencies, military forces or law-enforcement bodies.

Iraqi Airways is also prohibited from providing transport services to individuals or entities subject to US sanctions within the categories covered by the restrictions.

The licence limits permitted cargo to passengers' personal belongings and equipment or other items necessary for the aircraft's security, safety and operation. Restrictions also remain on the export or re-export of goods, technology or software to Iran unless specifically authorised under the licence.

A key provision makes the continuation of the exemption conditional on Iraq complying with restrictions governing Iranian flight operations in Iraqi airspace. The licence states that it may be amended or revoked if the conditions governing the entry or transit of Iranian flights through Iraqi airspace are not met, except where such flights are covered by the authorisation.

The licence also imposes financial and reporting requirements on Iraqi Airways. The airline must retain records of all transactions covered by the authorisation for 10 years and submit a report to OFAC within 10 business days of the licence's expiry.

The report must include the number of passengers transported on authorised flights, their names and passport numbers, as well as details of funds spent by Iraqi Airways in Iran on fuel, maintenance, airport services and other flight-related expenses.

The exemption follows punitive measures announced by the US Treasury on 8 September, targeting 36 entities linked to Iran's aviation sector, including 27 Iranian airlines, as part of Washington's wider campaign known as "Operation Economic Outcast".

At the time, the Treasury said the sanctions targeted networks it alleged were being used by Iran to transport weapons, personnel and cargo that Washington considers illicit.


PUKMEDIA