UPDATE 1 — Iraqi Airways to resume Iran flights in October after securing 'special exemption'

(Adds details and background) BAGHDAD, Sept 29 (Reuters) — Iraqi Airways is preparing to resume flights to Iran in October, Iraq's transport ministry said on Tuesday, following a suspension of flights amid US sanctions restricting services to Iranian airlines. The ministry said Iraq had secured a special exemption allowing Iraqi Airways to operate services to Iran. Iraq halted flights to and from Iran on Friday in line with US sanctions, and the government had sought exemptions for travel related to pilgrimage, medical treatment and education. The transport ministry said services next month would initially operate from the Shi'ite holy city of Najaf once regulatory and technical requirements were completed. The announcement comes after Baghdad had offered safeguards including passenger screening and information sharing, as well as measures to prevent the flights being used to transport weapons, sanctioned individuals or illicit money, a source with direct knowledge of.