US targets ​Iraq's deputy oil minister and militias with sanctions for aiding Iran

The U.S. imposed sanctions on Thursday on ​Iraq's deputy oil minister ​and militias over support for Iran, the Treasury ​Department said.

The Treasury Department accused Iraq's deputy minister Ali Maarij Al-Bahadly of abusing "his position to facilitate the diversion of oil to be sold for the benefit ‌of the ⁠Iranian regime ⁠and its proxy militias in Iraq."

It said Maarij enabled an Iran-affiliated oil ​smuggler to mix Iranian oil with Iraqi oil before being shipped to global ​markets and falsified documents that helped Iranian-affiliated networks to sell the mix disguised as purely Iraqi oil. It said Maarij authorized trucking several ​million dollars' worth of oil per day ⁠from Iraq's ‌Qayyarah oil field for export, helping Iranian networks.


Iraq's ​oil ministry ​and the deputy minister did not immediately respond ⁠to requests for comment.

In March, Iraq's oil minister, Hayan ​Abdel-Ghani, said Iranian oil tankers stopped by U.S. ​forces in the Gulf were using forged Iraqi documents. Tehran denied using such documents.

The move to sanction the deputy minister comes as the U.S. and Iran edge toward a temporary agreement to halt the war, with Tehran reviewing a proposal that would stop ‌the fighting but leave the most contentious issues unresolved.

The U.S. Treasury is also sanctioning three senior leaders of ​Iran-aligned militias Kata'ib ​Sayyid Al-Shuhada and ⁠Asa'ib Ahl Al-Haq, it said.

"Treasury will not stand idly by as Iran's military exploits Iraqi oil to fund terrorism against the United States ​and our partners," Treasury Secretary Scott Bessent said in a statement.

The sanctions freeze any U.S. assets of those targeted and generally bar Americans from dealing with them.