The US on Thursday announced sanctions on Iraq's deputy oil minister as well as the leaders of two Iran-backed militias.
The Treasury Department has accused Ali Maarij Al Bahadly of abusing his position to divert oil to be sold on behalf of Iran and its proxy militias in Iraq. Three senior leaders of Kata’ib Sayyid Al Shuhada and Asa’ib Ahl Al Haq were also named in the sanctions, accused of smuggling Iranian oil for the benefit of Tehran.
“Like a rogue gang, the Iranian regime is pillaging resources that rightfully belong to the Iraqi people,” said Treasury Secretary Scott Bessent. “Treasury will not stand idly by as Iran's military exploits Iraqi oil to fund terrorism against the United States and our partners.”
Mr Al Bahadly, who previously served as the head of the Iraqi parliament’s oil and gas committee before entering the Ministry of Oil in 2018, was “instrumental” in enabling the diversion of Iraqi petroleum to a known smuggler, the Treasury said.
The alleged smuggler, Salim Ahmed Said – who was sanctioned by the US last June – was accused of bribing complicit officials in the Iraqi government, as well as reportedly installing Mr Al Bahadly in his official position, the Treasury said.
It comes as the US continues to pile pressure on Baghdad to distance itself from Tehran and crack down on Iran-backed militias. The issuing of US sanctions against a high-level official of an allied country is unusual. In recent weeks, the US has offered tens of millions of dollars in rewards for information on militia leaders.

