U.S. Sanctions Iraq’s Deputy Oil Minister and Iraqi Militia Figures Linked to Iran

U.S. Treasury Department announced sanctions on May 7, 2026, targeting Iraq's deputy oil minister and senior figures linked to Iran-aligned militias. U.S. assets of the sanctioned individuals and entities while barring Americans from doing business with them.

U.S. Treasury Department of facilitating the diversion of Iraqi oil to be sold for the benefit of the Iranian regime and its proxy militias in Iraq. The sanctions also hit senior figures tied to Kata’ib Sayyid Al-Shuhada and Asa’ib Ahl Al-Haq.

The sanctions target individuals and entities accused of exploiting Iraq's oil sector to benefit Iran and its proxy militias. Treasury Secretary Scott Bessent stated on X on May 7, 2026: "Like a rogue gang, the Iranian regime is pillaging resources that rightfully belong to the Iraqi people.

The sanctions were announced on Thursday, escalating pressure on networks that have operated in a legal gray area amid regional tensions. The move comes as Iraqi oil flows have faced constraints from rerouting and arrangements tied to broader disruptions in the region.

Baghdad has offered steep discounts on its crude in response to logistical challenges, while Washington has adjusted enforcement in related oil markets.

Accusations that Iraqi documentation has been used to move Iranian crude are not new. Iraqi officials noted earlier this year that some tankers stopped in the Gulf carried forged Iraqi paperwork, prompting the current enforcement priority. The sanctions seek to disrupt revenue flows before any potential pauses in regional conflicts.

They signal that enforcement around oil movements will continue regardless of diplomatic developments between the United States and Iran.