U.S. targets Iraqi airline Fly Baghdad, its CEO and Hamas cryptocurrency financiers for sanctions

The U.S. on Monday hit Iraqi airline Fly Baghdad and its CEO with sanctions, alleging assistance to Iran's military wing, and imposed a fifth round of sanctions on the militant group Hamas for abuse of cryptocurrency since the Oct. 7 attack on Israel.

The sanctions come as Israel's bombing campaign on the Gaza Strip continues — killing 25,000 Palestinians so far, according to the Gaza Strip Healthy Ministry — and Iranian-backed militias in Iraq launch regular strikes against bases housing U.S. forces in Iraq and Syria.

In the new sanctions, the Treasury Department said Fly Baghdad and CEO Basheer Abdulkadhim Alwan al-Shabbani have provided assistance to Iran's military wing and its proxy groups in Iraq, Syria and Lebanon.

"Iran and its proxies have sought to abuse regional economies and use seemingly legitimate businesses as cover for funding and facilitating their attacks," Treasury Undersecretary Brian E. Nelson said in a statement. "The United States will continue to disrupt Iran's illicit activities aimed at undermining the stability of the region."

The sanctions block access to U.S. property and bank accounts and prevent the targeted people and companies from doing business with Americans.

Fly Baghdad denied the U.S. allegations and said it would take legal action to demand compensation for losses resulting from the sanctions "as it is clear that the decision was based on misleading and false information and cannot stand before the law."

The Treasury's Office of Foreign Assets Control also designated three leaders and supporters of an Iran-aligned militia in Iraq, Kataib Hezbollah, as well as a business that it says moves and launders funds for the organization.

Since the outbreak of the Israel-Hamas war, an