Iraqi Parliament Questions Oil Minister Over Iranian Oil Smuggling Amid U.S. Sanctions Warning
The hearing follows a growing scandal over reports that Iranian crude is being covertly blended into Iraq’s oil exports under the SOMO label, potentially violating international sanctions and jeopardizing Iraq’s critical oil revenues.
ERBIL (Kurdistan24) — The Iraqi Parliament’s Oil and Energy Committee on Monday convened a session with the Iraqi Minister of Oil, along with the directors of Iraq’s State Organization for Marketing of Oil (SOMO) and the Oil Ministry’s Transportation Company, to question them about ongoing allegations of smuggling Iranian oil through Iraq and selling it on the international market.
The hearing follows a growing scandal over reports that Iranian crude is being covertly blended into Iraq’s oil exports under the SOMO label, potentially violating international sanctions and jeopardizing Iraq’s critical oil revenues.
According to parliamentary sources, lawmakers pressed the officials on evidence of illicit activities and demanded clarity on accountability mechanisms within the ministry and its associated institutions. The committee has expressed deep concern that such smuggling operations, if proven, could have dire economic consequences for Iraq.
The investigation was triggered by a direct warning from the United States on Thursday. The U.S. State Department notified the Iraqi government that failure to halt the smuggling of Iranian oil and punish those involved could result in severe sanctions — including potential actions against SOMO itself and the freezing of $350 million in Iraqi oil revenues.
Washington also announced sanctions against six entities and identified four vessels involved in significant transactions related to Iranian oil. The U.S. Treasury Department further designated 22 companies across Hong Kong, the UAE, and Türkiye for facilitating petroleum sales that benefit Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF).
With more than 90% of Iraq’s national revenue derived from oil exports, members of Parliament have emphasized that any disruption to oil income could spark a major financial crisis. The Oil and Energy Committee last week pledged to launch a full investigation and hold all responsible officials accountable.
“We are taking this matter extremely seriously,” a member of the committee said. “The integrity of our energy sector and the economic stability of Iraq are at stake.”
The outcome of the questioning session and the committee’s ongoing probe are expected to shape Iraq’s approach to enforcing oil sector transparency and maintaining critical economic ties with international partners, particularly the United States.
