ERBIL, Kurdistan Region of Iraq – Iraqi Airways is set to resume direct flights to Iran on Thursday, after Iraq secured a US sanctions exemption for air links between the two countries, the transport ministry announced.

The new operational plan will include daily flights from Najaf airport to Mashhad, Tehran and Isfahan, the ministry said in a statement on Monday.

The resumption follows a US Treasury waiver granted to Iraqi Airways in late September after Baghdad sought an exemption from US sanctions targeting Iran’s aviation sector. 

The sanctions had disrupted air links between Iraq and Iran after Washington warned that companies providing services to Iranian airlines could face sanctions. Iraq suspended flights to and from Iran at several airports, including Baghdad, Najaf, Erbil and Sulaimani.

The restrictions prompted Iraq to seek exemptions, citing the importance of flights for religious pilgrims, medical treatment, education and other civilian travel.

Iran-aligned Iraqi armed groups and parties condemned the government's halt of flights.

On Friday, Iraq announced a separate agreement allowing Iranian airlines, except Mahan Air, to operate up to 40 daily flights to and from Najaf airport. Prime Minister Ali al-Zaidi’s office said the agreement followed Baghdad’s efforts to secure an exemption from Washington and thanked the US government for its cooperation.

Flights between Iraqi airports and Iranians airlines resumed on Sunday.

Mahan Air remains excluded from the arrangement. The US Treasury has accused the airline of playing a role in enabling the Islamic Revolutionary Guard Corps (IRGC) despite the airline presenting itself as a civilian carrier. 

"This initiative aims to facilitate the smooth flow of passengers and provide consistent air travel options between Iraq and Iranian cities," the ministry said Monday.

It said the move is part of its effort to "reactivate air traffic and enhance air connectivity between Iraq and various regional destinations."