U.S. Treasury Sanctions Iraq Oil Deputy, Militia Leaders

The U.S. Treasury Department announced sanctions on Thursday against Iraq's deputy oil minister, Ali Maarij al-Bahadly, and three senior leaders of Iran-aligned militias, accusing them of exploiting Iraq's oil sector to help Iran evade restrictions and fund proxy groups.

The Treasury's Office of Foreign Assets Control designated al-Bahadly for using his positions within Iraq's oil ministry, including as deputy minister since 2024, to divert Iraqi oil products to an Iran-affiliated smuggler and the militia Asaib Ahl al-Haq. U.S. officials stated that this scheme involved labeling Iranian oil as Iraqi to facilitate its sale, generating revenue for Tehran and its allies. The smuggler, previously sanctioned by the Treasury, obtained forged Iraqi documents and preferential access to oil supplies through corrupt practices, according to the designations.

Also targeted were Mustafa Hashim Lazim al-Behadili, an economic official for Asaib Ahl al-Haq accused of controlling oil smuggling finances and negotiating with Iran's Islamic Revolutionary Guard Corps; Ahmed Khudair Maksus Maksus; and Mohammed Issa Kadhim al-Shuwaili, both senior figures in Kataib Sayyid al-Shuhada, linked to illicit...