The US Treasury Department has imposed sanctions on Iraq's Deputy Oil Minister Ali Maarij al-Bahadly and leaders of pro-Iran militias, accusing them of helping Iran sell oil in violation of US sanctions.
“Like a rogue gang, the Iranian regime is pillaging resources that rightfully belong to the Iraqi people,” said US Treasury Secretary Scott Bessent. “Treasury will not stand idly by as Iran’s military exploits Iraqi oil to fund terrorism against the United States and our partners.”
The sanctions come amid heightened US-Iran tensions over control of the Strait of Hormuz, a vital conduit for Gulf oil exports. Neither Iraq nor Iran has commented on the designations.
Iraq has faced increasing US pressure in recent months over its close ties to neighboring Iran. President Donald Trump earlier warned Washington could halt support for Iraq if pro-Iran figures gained power.
Al-Bahadly, the most prominent figure sanctioned, has overseen Iraqi oil governance for years. The Treasury alleged he was “instrumental in facilitating the diversion of Iraqi oil products” to benefit an Iran-linked smuggler, who allegedly labeled Iranian oil as Iraqi to evade sanctions.
Also sanctioned were Mustafa Hashim Lazim al-Behadili, described as a leader of the Iran-backed Asa'ib Ahl al-Haq movement, and Ahmed Khudair Maksus Maksus and Mohammed Issa Kadhim al-Shuwaili, senior officials in Kata'ib Sayyid al-Shuhada. They were accused of involvement in oil smuggling financing and illicit weapons purchases.
Experts say Iran generates at least $1 billion annually from an oil smuggling network that diverts Iranian fuel to Iraqi asphalt plants, blends it with Iraqi oil, and exports it as purely Iraqi. The Trump administration views the sanctions as part of a “maximum pressure” campaign against Tehran.
Iraq and Iran remain close allies, particularly under the pro-Iran Coordination Framework governing Baghdad. Many Iraqi leaders lived in Iran before 2003, allowing Tehran to expand influence through funding Shia militia groups that now control key economic sectors, including oil.
Source: www.aljazeera.com