WASHINGTON: The United States announced sanctions on Monday on Iraqi low-cost airline Fly Baghdad, saying it provided assistance to Iran`s Revolutionary Guards and proxies, while also targeting leaders of a pro-Iranian Iraq militia for sanctions.

The moves come as Iraq`s powerful pro-Iranian armed group Kataeb Hezbollah has `carried out a series of sharply escalating drone and missile attacks against US personnel in Iraq and Syria,` said the US Treasury Department in a statement.

The surge came in thewake of Israeli aggression in Gaza. Israel has carried out a relentless offensive that has killed thousands of people in Gaza.

Kataeb Hezbollah and other Iran-aligned militia groups in Iraq `have consistently issued statements` supporting Hamas, while declaring `their commitment to attacking US personnel,` the US Treasury said.

`Iran and its proxies have sought to abuse regional economies and use seemingly legitimate businesses as cover for funding and facilitating their attacks,` said Treasury Under Secretaryfor terrorism and financial intelligence Brian Nelson.

In a separate statement, the US State Department added thatthe QudsForce of Iran`s Islamic Revolutionary Guard and Iran-aligne d militia groups `pose a significant threat to the Middle East region.

`The United States remains committed to exposing and taking actions against individuals and groups that abuse their local economies and engage in illegal activities that support terrorist groups destabilising the region,` added State Department spokesperson Matthew Miller.-AFP