31 CFR § 576.207
Exemption for property controlled by the military forces of the United States and their coalition partners in Iraq. — Iraq Stabilization and Insurgency Sanctions Regulations
An exemption is not a licence. Conduct this section exempts falls outside the Iraq Stabilization and Insurgency Sanctions Regulations' prohibitions altogether, so no OFAC authorization is needed for it. Read the limits with the grant: these sections routinely carve the exemption back, or point at a general licence for the part they do not cover.
Section text
The prohibitions in § 576.201(a)(1) and (a)(2) shall not apply to property and interests in property that come under the control of the military forces of the United States and their coalition partners present in Iraq and acting in their official capacity under the command or operational control of the commander of United States Central Command.