The United States has granted a sanctions exemption allowing Iranian airlines to operate up to 40 daily flights to the holy Shiite city of Najaf in Iraq, news.detik.com reported on October 3, 2026. The policy follows an agreement reached between the Iraqi government and U.S. officials on October 2, reversing an earlier suspension that had left travelers stranded.
U.S. Sanctions Waiver Permits 40 Daily Flights to Najaf
Under the new agreement announced by the Iraqi Prime Minister’s office, Iranian carriers—with the sole exception of Mahan Air—are authorized to run 40 flights daily to and from Najaf. The U.S. waiver specifically covers passenger travel for medical treatment, religious tourism, and general visitors, according to the Iraqi Prime Minister’s office cited by news.detik.com.
The exemption comes just weeks after the U.S. Treasury announced broad sanctions against Iran’s aviation sector on September 21, 2026, aimed at choking Tehran’s economy. Treasury Secretary Scott Bessent stated the goal was to “stop operations” of Iranian airlines and dispatched envoys globally to pressure other nations to isolate Iran.
Iranian Foreign Ministry Demands Full Normalization of Air Traffic
Prior to the Najaf waiver, the Iranian Foreign Ministry issued a statement on October 1, 2026, calling for the complete lifting of all flight restrictions between Iran and Iraq, ANTARA News Sultra reported. Tehran condemned U.S. actions as economic terrorism that harms hundreds of thousands of passengers, including pilgrims, students, and patients. In an official statement, the ministry further described Washington’s policies as illegal and inhumane.
Meanwhile, flight tracking data cited by TVRI News showed a 42 percent drop in traffic at Tehran’s Imam Khomeini International Airport following the September 23 enforcement date. The Iraqi News Agency reported that the recovery of flights to Najaf resulted from the efforts of Prime Minister Ali al-Zaidi to resolve the diplomatic deadlock.
Broader Transport Sanctions Hit Automotive and Rail Sectors
Expanding beyond aviation, the U.S. Treasury Department imposed sweeping sanctions on October 1, 2026, targeting Iran’s automotive and rail networks, Kontan reported. The measures choke off land routes that Tehran increasingly relied on after maritime blockades disrupted oil and chemical shipments through the Strait of Hormuz. The U.S. Treasury stated these actions target “critical arteries” that the regime uses to maintain its economy and bypass sanctions. The campaign aims to cut funding for cyberattacks, missile development, war, and the Islamic Revolutionary Guard Corps (IRGC).
Republika Online reported that the new U.S. blacklists target SAIPA and Iran Khodro Company (IKCO), alongside motorcycle maker Niroo Motor and state-owned rail operator Islamic Republic of Iran Railway Company (RAI). The U.S. Treasury noted that SAIPA and IKCO control over 90 percent of the domestic market. Other targeted rail entities include Raja Passenger Trains Company and the private freight carrier Sherkat-E Rah Ahan-E Khamle-O-Naghle. The sanctions also reach international suppliers, including Indonesia’s Golden Motorcycle Company alongside firms in Turkey, Hong Kong, the UAE, and Germany, according to Republika Online.
Ground Impacts and Transport Disruptions Across Iraq
While Najaf flights resume under the new U.S. waiver, air traffic at Baghdad International Airport, Erbil, and Sulaimaniyah remains completely paralyzed, TVRI News reported. Ground-handling companies have refused service due to fear of secondary U.S. sanctions, forcing travelers into 12-hour overland journeys and triggering protests in Najaf, Karbala, Nasiriya, and Amarah.
Iraqi Ambassador to Iran Yasser Abdul Zahra al-Hajjaj stated that Baghdad never officially issued a flight ban, attributing the standstill entirely to foreign ground handlers withholding services over Washington’s secondary penalties, according to TVRI News.
Additional Industrial Sanctions
Washington also sanctioned the Heavy Equipment Production Company (HEPCO), which the U.S. Treasury describes as one of the largest road construction and mining machinery producers in the Middle East. This includes a HEPCO subsidiary based in Shanghai. Companies in Germany and the UAE were targeted for allegedly assisting Iranian steel firms.
Clarifying Mahan Air Flight Bans and U.S. Sanctions Dates
Which Iranian airline is excluded from the Najaf flight exemption?
Mahan Air remains barred from operating flights to Najaf under the sanctions waiver announced on October 2, 2026, news.detik.com reported.
When did the United States announce the broader aviation embargo against Iran?
U.S. Treasury Secretary Scott Bessent announced the embargo on September 21, 2026, with enforcement beginning on September 23, 2026, according to Republika Online and TVRI News.
Which Indonesian company was targeted in the October 2026 U.S. sanctions?
Golden Motorcycle Company in Indonesia was included in the October 1, 2026 U.S. Treasury sanctions targeting international suppliers to Iran’s automotive sector, Republika Online reported.
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