The U.S. Treasury Department imposed sanctions on Iraqi Deputy Oil Minister Ali Maarij al-Bahadly on May 7, accusing him of diverting Iraqi oil to benefit Iran and its proxy militias. The sanctions also targeted oil sector companies linked to these groups.
Background and Context
The U.S. State Department stated that the sanctions follow over 600 attacks on U.S. facilities in Iraq by Iran-backed militias since the start of the U.S.-led war. The Baghdad Diplomatic Support Center and the U.S. Embassy in Baghdad have been repeatedly targeted, including a March drone strike and a fire on the embassy roof in April. The State Department urged Americans to leave Iraq, citing ongoing threats.
U.S. Accusations
The Treasury Department alleged that al-Bahadly abused his position to mix Iranian oil with Iraqi oil and sell it for Iran’s benefit. The sanctions aim to pressure Iraq to distance itself from Tehran-backed groups, which have gained influence in the government.
Iraqi Government Response
Iraq’s newly elected Prime Minister-designate Ali al-Zaidi faces pressure to address U.S. concerns. President Donald Trump recently expressed support for al-Zaidi’s efforts to form a government free from terrorism.
Broader Implications
The sanctions are part of the Trump administration’s strategy to counter Iran’s growing presence in Iraq. Iran-backed militias have called for the expulsion of U.S. troops, complicating Iraq’s political landscape.