Washington targets corrupt Iraqi officials and Iran-backed militias accused of funding regional terrorism through illegal oil operations.
The US State Department announced sweeping sanctions against individuals and companies accused of exploiting Iraq’s oil industry to secretly benefit the Iranian regime and its terrorist proxy networks operating across the Middle East.
In a strongly worded statement, the Trump Administration said it is taking “decisive action” against networks allegedly responsible for undermining Iraq’s sovereignty, stealing national resources, and financing violence targeting both Iraqis and Americans.
Among the most prominent figures sanctioned is Iraq’s Deputy Minister of Oil, Ali Maarij al-Bahadly. According to the State Department, al-Bahadly abused his senior government position to help divert Iraqi crude oil for the benefit of Iran and affiliated terrorist organizations operating inside Iraq and across the region.
American officials alleged that Iranian oil was secretly blended with Iraqi crude and then sold internationally through fraudulent documentation schemes designed to evade sanctions and generate financial lifelines for Tehran.
The sanctions package also targets senior leaders from the Iran-backed militias Kata’ib Sayyid Al-Shuhada and Asa’ib Ahl Al-Haq, along with several oil-sector entities accused of assisting those groups in moving funds and resources.
Washington stated that these militias continue exploiting Iraq’s economy and energy infrastructure to finance extremist operations, destabilize the region, and strengthen Iran’s influence throughout the Middle East.
“The United States remains committed to supporting Iraq’s sovereignty and holding accountable those who attack our personnel or exploit Iraqi resources for the Iranian regime’s benefit,” the State Department declared.
The sanctions are intended to disrupt financial pipelines supporting Iranian-backed terrorism while reinforcing American support for the Iraqi people and Iraq’s independence from Tehran’s growing interference.
The latest measures also signal that Washington intends to maintain intense economic and financial pressure on Iran and its regional proxy network even as diplomatic efforts continue toward a possible temporary pause in hostilities.
