BAGHDAD — Iraq has approved 40 daily flights for Iranian airlines to and from Najaf International Airport, following a U.S. government exemption from sanctions targeting Iranian aviation. The decision, announced by Prime Minister Ali Al Zaidi's office on Friday, excludes the sanctioned carrier Mahan Air.

The approval facilitates travel for pilgrims and individuals seeking medical treatment, according to the Prime Minister's office. Al Zaidi expressed appreciation for "the positive response of the US government to Iraq's efforts and its cooperation in granting the requested exemption."

The development follows U.S. sanctions on Iranian air travel imposed last month as part of an economic isolation campaign. Treasury Secretary Scott Bessent said Monday that companies dealing with Iranian airlines would be "knocked out of the dollar system."

The sanctions had led to a suspension of flights between Iraq and Iran. Last week, the Iranian Civil Aviation Organisation confirmed that ticket sales to Najaf had been halted. An Iranian consulate in Najaf criticized the ban, highlighting the city's religious significance for Shiite Muslims.

Najaf is home to the Shrine of Imam Ali, a revered figure in Islam. In June, the coffin of Iran's late Supreme Leader Ayatollah Ali Khamenei was paraded through Najaf during a funeral detour in Iraq, underscoring the city's importance to Iranian pilgrims.

Flights to Baghdad were also suspended on Wednesday due to the U.S. sanctions. Iranian state media had indicated earlier that the air route to Najaf might remain open despite broader flight disruptions.

Ground-handling companies in Iraq had ceased serving routes connecting the two nations out of concern over potential U.S. Treasury sanctions. The Iraqi Transport Ministry said Tuesday that Iraqi Airways planned to resume flights to and from Iran in October.

The U.S. sanctions prompted other nations to restrict Iranian air travel. The United Arab Emirates suspended all flights operated by Iranian airlines to and from its territory on Thursday. Air services between Iran and Oman have also been affected.