Mahan Air is excluded from the agreement as Baghdad says Washington granted its request for a waiver.

Iraq has agreed to let Iranian airlines, except Mahan Air, operate up to 40 flights a day to and from Najaf International Airport, saying the United States granted an exemption from its sanctions.

Prime Minister Ali al-Zaidi’s office announced the agreement on Friday, a day after Tehran urged Baghdad to lift restrictions that it said hurt pilgrims, patients, students and business.

The deal eases the links between the two Shia-majority neighbours since Washington sanctioned Iran’s aviation sector last month.

Al-Zaidi welcomed the “positive response shown by the US government to Iraq’s efforts and its cooperation in granting the necessary exemption”, the statement from his office said.

“Air travel does not merely represent transportation between two airports, but rather a bridge of communication between peoples,” it added.

Separately, Iraq’s Foreign Minister Fuad Hussein said the return of flights supports an Iraqi-US partnership premised on mutual respect.

Hussein also welcomed what he described as US understanding of the importance of respecting religious freedom and facilitating access for visitors to holy sites.

Flights suspended

The US Treasury announced sanctions on September 8 against 36 entities linked to Iran’s aviation sector.

Foreign ground-handling companies then refused to service Iranian aircraft for fear of falling foul of US sanctions, and flights stopped at four Iraqi airports.

Soon after, Iraq’s government held direct talks with Washington, seeking an exemption.

Iraq’s ambassador to Tehran, Yasser al-Hajjaj, told Iran’s IRNA news agency that Baghdad had not ordered the halt in flights. The suspension also led to demonstrations outside Najaf airport and in Nasiriya, Karbala and Amarah, according to Iran’s Press TV.

Najaf is the main destination for Iranian flights in Iraq. Flights to and from the city carry Iraqi Shia Muslim pilgrims to Iran’s holy cities or Iranians visiting sacred sites in Iraq.

Iran’s ambassador to Baghdad, Mohammad Kazem al-Sadegh, told the Iranian news agency ISNA that there were “roughly 25 daily flights from Iran to Najaf and about 15 flights to Baghdad” before the ban.

“Around 12,000 to 13,000 people travel between Iran and Iraq and vice versa on Iranian airlines, which is not a small number,” he added.

In a statement shared on Thursday, Iran’s Foreign Ministry said that Washington’s “illegal and inhumane” extraterritorial enforcement of sanctions was disrupting Iran’s trade and air transport.

Restrictions remain

Flights between Najaf and Iran restarted late on Monday, according to the Iraqi News Agency.

However, flights with Iran are still suspended at Baghdad, Erbil and Sulaimaniyah airports, forcing passengers into land journeys of at least 12 hours and disrupting pilgrim traffic.

Al Jazeera has not verified the exemption with representatives in Washington.