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3. U.S. Sanctions Iraqi Oil Officials and Iran-Linked Militias in Major Crackdown

The United States Treasury Department announced sweeping new sanctions targeting Iraqi oil officials and Iran-backed militias accused of exploiting Iraq’s oil sector to finance armed groups aligned with Tehran.

At the center of the measures is Ali Maarij Al-Bahadly, Iraq’s Deputy Minister of Oil. In the press release, the department accuses him of using his position to facilitate the smuggling of Iraqi oil for the benefit of Iran and pro-Iranian militias operating within Iraq.

According to the U.S. Treasury, Al-Bahadly allegedly helped to provide export rights and falsified documentation that allowed Iranian oil to be disguised and sold as Iraqi oil on international markets. U.S. officials say the scheme generated millions of dollars daily and benefited networks linked to Asa’ib Ahl Al-Haq (AAH), an Iran-backed militia designated by Washington as a terrorist organization.

The sanctions also target high-level figures from the militias Asa’ib Ahl Al-Haq and Kata’ib Sayyid Al-Shuhada, groups accused by the United States of carrying out attacks against American personnel and diplomatic facilities in Iraq and Syria.

In a statement, U.S. Treasury Secretary Scott Bessent accused Iran of “pillaging resources that rightfully belong to the Iraqi people” and said Washington would continue applying “maximum pressure” on Tehran and its regional proxies.

The Treasury Department further alleged that militia-linked networks used oil smuggling, transport companies, and government contracts to finance military activities and coordinate weapons transfers with Iran’s Islamic Revolutionary Guard Corps (IRGC).

The move forms part of a broader U.S. strategy aimed at disrupting Iran’s oil revenue and its regional financial networks. Washington warned that any companies, financial institutions, or vessels involved in illicit Iranian oil trade may face secondary sanctions.

Under the measures, all U.S.-based assets belonging to the designated individuals and entities are frozen, while U.S. citizens and companies are prohibited from conducting business with them.