WASHINGTON,— The United States imposed sanctions on Iraq’s deputy oil minister and several militia leaders over alleged support for Iran, the Treasury Department said on Thursday.
The Treasury Department accused Deputy Oil Minister Ali Maarij Al Bahadly of using his position to help divert oil that was later sold for the benefit of the Iranian government and allied militias operating in Iraq.
U.S. officials said Maarij worked with an oil smuggler linked to Iran by allowing Iranian oil to be blended with Iraqi oil before shipments reached international markets.
The department said documents were falsified so the blended oil could be presented as Iraqi crude and sold through networks connected to Iran.
Treasury officials also said Maarij approved the transport of oil worth several million dollars each day from Iraq’s Qayyarah oil field for export, helping Iranian-linked operations move supplies through Iraq.
Iraq’s oil ministry rejected the accusations and said it was prepared to cooperate with any fair investigation into the claims.
The ministry added that crude exports, tanker loading, oil marketing and related procedures were not among Maarij’s official duties.
Maarij did not immediately respond to requests for comment.
In March, Iraqi Oil Minister Hayan Abdel Ghani said Iranian tankers detained by U.S. forces in the Gulf had used forged Iraqi documents. Tehran denied using false Iraqi paperwork.
The sanctions were announced as Washington and Tehran moved closer to a temporary agreement aimed at halting the war while leaving major disputes unresolved.
Treasury also imposed sanctions on three senior leaders from the Iran aligned militias Kata’ib Sayyid Al Shuhada and Asa’ib Ahl Al Haq.
Treasury Secretary Scott Bessent said the United States would not allow Iran’s military to use Iraqi oil revenues to finance militant activity against Washington and its partners.
The sanctions freeze U.S. assets and prohibit Americans from business with those targeted entities.
(With files from Reuters)
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