According to Iraqi media reports, the restoration of the flights followed efforts by Iraqi Prime Minister Ali al-Zeidi.
Reuters reported that the US Treasury Department would allow Iraqi Airways to operate flights between Iran and Najaf for one month under the exemption. A permanent exemption could also be considered later.
Iraq has also sought exemptions to facilitate travel to Iran for medical treatment, education and religious pilgrimages.
The move is expected to help restore air connectivity for passengers traveling between Iran and Iraq, particularly religious pilgrims.