US Sanctions Target Iraq's Deputy Oil Minister Over Iran Connections

• •The U.S. sanctioned Iraq's Deputy Oil Minister for facilitating oil diversion to Iran.
• •Sanctions target individuals and militias accused of supporting Iranian military operations.
• •The U.S. aims to increase economic pressure on Iran amid ongoing conflict and negotiations.

On May 7, 2026, the U.S. Treasury imposed sanctions on Iraq's Deputy Oil Minister Ali Maarij Al-Bahadly and three leaders of Iran-aligned militias for facilitating the diversion of Iraqi oil to benefit Iran. Al-Bahadly is accused of enabling oil smuggling operations that mix Iranian oil with Iraqi oil, allowing it to be sold on global markets under false pretenses. The sanctions freeze any U.S. assets of the individuals involved and bar Americans from engaging with them. This action comes amid ongoing tensions between the U.S. and Iran, as both nations are reviewing a proposal for a temporary agreement to halt hostilities in the region. The sanctions are part of a broader strategy to increase economic pressure on Iran and its proxy militias, particularly in Iraq. The U.S. aims to prevent Iran from using Iraqi oil revenues to fund terrorism against American interests and allies.