US Sanctions Iraqi Oil Official for Iran Links

U.S. Sanctions Iraqi Oil Official Over Iran Ties The United States Treasury Department on Thursday sanctioned Iraq's Deputy Oil Minister, Ali Maarij al-Bahadly, and leaders of pro-Iran militias, accusing them of facilitating Iran's evasion of U.S. oil sanctions. This action targets individuals allegedly involved in a scheme to sell Iranian oil by mislabeling it as Iraqi, thereby circumventing international restrictions.

The Treasury Department stated that al-Bahadly, who has held various roles within the Iraqi oil ministry since 2024, was instrumental in diverting Iraqi oil products to benefit an Iran-affiliated oil smuggler and the Asa’ib Ahl al-Haq movement. Other sanctioned individuals include Mustafa Hashim Lazim al-Behadili, an economic official for Asa’ib Ahl al-Haq, and Ahmed Khudair Maksus Maksus and Mohammed Issa Kadhim al-Shuwaili, senior officials within Kata’ib Sayyid al-Shuhada, for alleged involvement in illicit weapons purchases and oil smuggling financing.

These sanctions are part of the U.S. “maximum pressure” campaign against Iran, initiated by the Trump administration in 2018 following its withdrawal from the nuclear deal. The U.S. alleges that Iran generates at least $1 billion annually from an oil smuggling network that diverts Iranian fuel through Iraqi asphalt plants, blending it with Iraqi oil for export. Neither Iraq nor Iran has issued an official response to these latest sanctions.