U.S. Sanctions Iraqi Oil Official, Iran-Backed ‘Militias’
In a statement, the U.S. Department of the Treasury said its Office of Foreign Assets Control (OFAC) designated Iraq’s Deputy Minister of Oil, Ali Maarij Al-Bahadly.
ERBIL (Kurdistan24) – The United States on Thursday imposed new sanctions targeting Iraq’s oil sector and Iran-backed “militias”, accusing Iraqi officials and armed groups of helping Tehran finance militant activities through oil-smuggling operations.
In a statement, the U.S. Department of the Treasury said its Office of Foreign Assets Control (OFAC) designated Iraq’s Deputy Minister of Oil, Ali Maarij Al-Bahadly, along with several individuals and companies allegedly linked to Iran-aligned “militias”, including Asa’ib Ahl Al-Haq (AAH) and Kata’ib Sayyid Al-Shuhada (KSS).
The Treasury Department accused Al-Bahadly of abusing his official position to facilitate the diversion and smuggling of Iraqi oil for the benefit of Iran and allied “militias.” Washington said he helped provide export rights and falsified documents to disguise Iranian oil as Iraqi oil for international sale.
U.S. Treasury Secretary Scott Bessent said Iran was “pillaging resources that rightfully belong to the Iraqi people” and vowed continued pressure on Tehran and its regional allies.
The sanctions also targeted senior “militia” figures, including Mustafa Hashim Lazim Al-Behadili of Asa’ib Ahl Al-Haq and two officials from Kata’ib Sayyid Al-Shuhada, whom Washington accused of involvement in oil smuggling, illicit financing, and weapons procurement operations linked to Iran and Lebanon’s Hizballah.
According to the Treasury statement, several Iraq-based oil and transport companies allegedly controlled by Al-Behadili were also blacklisted.
The measures are part of the Trump administration’s “maximum pressure” campaign against Iran, which seeks to restrict Tehran’s oil revenues and financial networks. U.S. authorities warned that any individual, company, or vessel involved in facilitating illicit Iranian oil trade could face sanctions.
Under the sanctions, all U.S.-based assets belonging to the designated individuals and entities are frozen, while American citizens and businesses are generally prohibited from conducting transactions with them.