The United States has removed counterterrorism sanctions from Fly Baghdad, an Iraqi airline previously accused of transporting weapons, fighters and funds for Iran’s Islamic Revolutionary Guard Corps-Quds Force and its terrorist proxies across the region.

The Treasury Department also delisted two Boeing 737 aircraft operated by the airline. Three names appearing in the removal notice — Fly Baghdad, Fly Baghdad Airlines Company and Iraq Express — refer to the same carrier, not three separate airlines.

Fly Baghdad was originally sanctioned after Washington said it delivered weapons to Syria for the IRGC-QF, Hezbollah, Kata’ib Hezbollah and other Iran-backed forces. The airline’s CEO remains sanctioned, with Treasury now linking him directly to the IRGC-QF.

Treasury gave no explanation for the removal. It comes as Washington and Tehran close in on a possible agreement concerning the Strait of Hormuz, though no direct connection between the negotiations and the delisting has been confirmed.