On Thursday, the Trump administration ramped up its economic pressure on Iran by imposing sanctions on Iraq’s deputy oil minister and several companies linked to militias. These entities are accused of assisting Tehran...
On Thursday, the Trump administration ramped up its economic pressure on Iran by imposing sanctions on Iraq’s deputy oil minister and several companies linked to militias. These entities are accused of assisting Tehran in smuggling oil and financing armed groups throughout the Middle East.
This strong action by the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) highlights Washington’s growing concern over illegal oil movements through Iraq, especially amid increased instability in Gulf energy markets and ongoing disruptions to shipping in the region.
The key target of these sanctions is Ali Maarij Al-Bahadly, Iraq’s Deputy Minister of Oil. U.S. officials claim he is using his role to direct Iraqi oil into networks that benefit Iran and the Iran-supported militia Asa’ib Ahl Al-Haq.
The Treasury claims that Maarij has facilitated the transportation of millions of dollars in oil every day from Iraq’s Qayarah oil field to export terminals, where Iranian crude is mixed with Iraqi oil before being sold as Iraqi products on the international market.
These allegations highlight a critical vulnerability in the global energy system. These complex trade networks have allowed sanctioned Iranian oil to continue reaching global markets despite years of Western restrictions.
This action comes as Washington steps up its broader “Economic Fury” campaign against Iran, responding to months of escalating conflict, maritime disruptions, and attacks on commercial shipping related to tensions in and around the Strait of Hormuz.
“Like a rogue gang, the Iranian regime is stealing resources that rightfully belong to the Iraqi people,” said Treasury Secretary Scott Bessent in the announcement.
Treasury officials noted that this campaign has already hindered billions of dollars in potential Iranian oil revenue while targeting cryptocurrency networks, informal banking systems, and companies that allegedly assist Tehran in evading sanctions.