Iraq Denies U.S. Claims of Deputy Minister Aiding Iran Oil Sales
Iraq’s Oil Ministry has firmly denied allegations from the United States accusing its deputy oil minister of facilitating the sale of Iraqi crude oil mixed with Iranian crude to benefit Iran and its allied militias. These accusations were made on Thursday alongside sanctions targeting senior Iraqi and militia officials.
The U.S. Department of State sanctioned Ali Maarij al-Bahadly, Iraq’s Deputy Minister of Oil, alongside leaders of Iran-aligned militias such as Kata’ib Sayyid Al-Shuhada and Asa’ib Ahl al-Haq. These militias are designated as global terrorist organizations by the U.S. government.
The sanctions freeze any U.S.-based assets belonging to the individuals and forbid American citizens and entities from conducting business with them. According to the U.S., al-Bahadly abused his official position to divert Iraqi crude oil, mixing it with Iranian oil to circumvent international sanctions and support Iran’s regional proxies.
“Iranian oil was fraudulently mixed with Iraqi oil and sold for Iran’s benefit,” the U.S. administration stated, framing the move as part of its efforts to dismantle networks exploiting Iraq’s oil resources to fund terrorism and destabilize the region.
The U.S. emphasized the broader consequences of these illicit activities, stating that such networks undermine Iraq’s sovereignty, deprive its people of natural wealth, and fuel violence against both Iraqis and American forces.
These allegations are not new. Earlier this year, Iraqi officials reported that some oil shipments in the Gulf bore forged Iraqi documentation, a claim Tehran denied. The Iraqi Oil Ministry, however, has rejected the specific accusations against al-Bahadly, emphasizing that his role did not encompass operations related to crude export, marketing, or tanker loading.
State news agency INA, citing government sources, noted that the ministry is open to investigating the matter to clear up any misunderstandings.
This dispute unfolds against the backdrop of increased scrutiny by the U.S. Trump administration aimed at curbing Iranian influence in Iraq and disrupting financial channels linked to sanctioned groups.
The sanctions on al-Bahadly and militia leaders represent a continuation of U.S. efforts to restrict illicit oil trading schemes believed to bolster Iranian-backed militant groups in Iraq and the broader Middle East.
The situation remains fluid as both Iraqi authorities and the international community monitor developments closely in the highly sensitive geopolitics surrounding regional energy supplies and security.