Iranian flight ban tests Iraq’s U.S.-Iran balancing act

Iraq has found itself at the center of a growing regional confrontation after implementing restrictions on Iranian airlines under new United States (U.S.) sanctions targeting Tehran’s aviation sector. The decision has triggered political tensions inside Baghdad’s ruling coalition, with pro-Iran factions opposing compliance with the measures, while the government insists that avoiding American penalties is necessary to protect Iraq’s financial system, airports, and economic interests.

The dispute highlights the difficult position facing Iraq as it attempts to balance its strategic partnership with Washington against its deep political, economic, and religious ties with Iran.

Between U.S. sanctions, Iranian pressure, and domestic divisions

The Iraqi government has been negotiating with Washington to obtain limited exemptions, including a possible exception for Najaf International Airport, which serves millions of religious visitors each year. A complete suspension of Iranian flights could affect patients travelling for medical treatment, students studying in Iran, and pilgrims visiting religious sites.

In an interview with The Beiruter, Professor of Media Studies at Al-Mustansiriya University Dr. Ghalib Al-Daamy believed that the exemption currently under discussion does not appear to allow Iranian aircraft to resume operations, but rather permits Iraqi aircraft to operate limited flights for a temporary period. “Iran wants its own aircraft to come to Iraq, not only Iraqi aircraft,” Al-Daamy said, highlighting the disagreement between Tehran and Baghdad over the scope of any possible exception.

The issue has become politically sensitive inside Iraq and the country’s Shiite political establishment. Several factions within the Coordination Framework, the main Shiite political alliance dominating parliament and government, have criticized Baghdad’s decision to comply with the restrictions.

Dr. Al-Daamy believed that the domestic debate reflects a broader struggle between political forces seeking closer alignment with Iran and state institutions attempting to avoid international isolation. “There are objections from armed factions and some political actors against these sanctions,” Al-Daamy said. “There has been pressure on the government to request exemptions, but I believe the situation will eventually move toward de-escalation.”

Ali Akbar Velayati, foreign policy adviser to Iran’s Supreme Leader, strongly criticized the closure of Iraqi airports to Iranian airlines, accusing Iraqi political forces of failing to defend Tehran’s interests.

The issue comes at a particularly sensitive moment for Iraq, which is preparing for the final withdrawal of the U.S.-led international coalition. While Baghdad has described the withdrawal as a step toward “sovereignty,” some Kurdish leaders have expressed concern that leaving without adequate security arrangements could create vulnerabilities.

Kurdistan Region Prime Minister (PM) Masrour Barzani warned that leaving the region without sufficient defensive capabilities would be a source of concern, reflecting wider fears over Iraq’s security environment after the coalition’s departure.

Aviation restrictions and economic risks

The consequences of the aviation ban extend beyond political disagreements. Iraq has significant economic ties with Iran, including trade, energy cooperation, and religious tourism. Iranian visitors represent a major source of revenue for cities such as Najaf and Karbala, particularly during religious occasions.

Nevertheless, Iraqi officials have stressed that land crossings between the two countries remain operational. Border points continue to handle passenger movement and commercial exchanges, allowing some activities previously conducted by air to continue.

Dr. Al-Daamy explained that Iraq’s compliance was also influenced by the structure of the aviation sector itself. Many airport operators and aviation service companies have international interests and cannot risk losing access to global markets. “The companies operating airports are foreign companies with interests in other countries,” he said. “If they violate U.S. sanctions, they could face penalties elsewhere and lose important business opportunities.”

He added that Iraq itself does not want to become involved in violating American restrictions and risk additional sanctions.

The broader context of U.S. pressure on Iran

The restrictions were introduced after the U.S. Treasury Department imposed sanctions on 8 September 2026 against dozens of entities connected to Iran’s aviation sector, including airlines, cargo companies, and service providers. It set 23 September 2026 as the deadline for foreign companies to stop providing services to Iranian carriers, warning that violations could result in exclusion from the dollar-based financial system.

Washington’s measures target Iran’s aviation industry as part of a wider sanctions campaign aimed at limiting Tehran’s economic capacity. Iranian airlines, particularly state-owned Iran Air and Mahan Air, have faced restrictions for years due to allegations linked to sanctions violations and support for Iranian military activities abroad.

The impact of the restrictions quickly became visible across Iraq’s airports. Iranian airline operations at Baghdad International Airport were suspended after several ground-service companies reportedly withdrew from handling Iranian aircraft, fearing exposure to U.S. penalties. Later, Najaf International Airport announced the suspension of all flights arriving from and departing to Iran until further notice, followed by Erbil International Airport and Sulaymaniyah International Airport in the Kurdistan Region. This has significantly narrowed the available aviation routes between the two neighbors.

The measures do not constitute an international ban on Iranian aviation. Instead, they rely primarily on secondary sanctions targeting foreign companies that provide fuel, maintenance, ground handling, and other services to Iranian airlines. This has encouraged many companies to suspend cooperation with Iranian carriers to avoid losing access to global financial markets.

In additions, several countries have already reduced or suspended Iranian aviation operations. The United Arab Emirates (UAE) suspended Iranian airline flights to and from its airports until further notice, while Oman, Azerbaijan, and Georgia also halted some flights operated by Iranian carriers. Turkey introduced partial restrictions affecting certain routes. However, some destinations, particularly in Asia, continue to maintain limited connections.

For Iraq, nevertheless, the challenge is particularly complex. Unlike many countries affected by the sanctions, Baghdad has long-standing religious, economic, and political ties with Tehran, making a complete separation unrealistic.