Sanctioning Iran-Aligned Actors Undermining Iraq’s Sovereignty and Exploiting Its Resources

The Trump Administration is taking decisive action against individuals and entities that are exploiting Iraq’s oil wealth to fund the Iranian regime’s terrorism in the region. These networks undermine Iraq’s sovereignty, rob the Iraqi people of national resources, and fuel violence against both Iraqis and Americans. 

Among those sanctioned is Ali Maarij al-Bahadly, Iraq’s Deputy Minister of Oil, who has abused his government position to divert Iraqi oil in support of the Iranian regime and its terrorist proxies. As part of a scheme to evade sanctions, Iranian oil was fraudulently mixed with Iraqi oil and sold for Iran’s benefit.   

The action also targets senior officials from the Iran-aligned terrorist militias Kata’ib Sayyid Al-Shuhada and Asa’ib Ahl Al-Haq, as well as oil-sector companies that support such militias. These groups continue to exploit Iraq’s economy to fund their terrorist activities. 

The United States remains committed to supporting Iraq’s sovereignty and holding accountable those who attack our personnel or exploit Iraqi resources for the Iranian regime’s benefit. Today’s sanctions send a clear message that we will stand with the Iraqi people as we continue to disrupt the financial networks that enable Iranian terrorism in the region. 

Today’s action is being taken pursuant to Executive to E.O. 13902, which targets key sectors of Iran’s economy, including Iran’s petroleum sector, and Executive Order (E.O.) 13224, which targets terrorist groups, their supporters, and those who aid acts of terrorism.  Asa’ib Ahl Al-Haq was designated as a Specially Designated Global Terrorist (SDGT) pursuant to E.O. 13224 and as a Foreign Terrorist Organization (FTO) in 2020.  Kata’ib Sayyid Al-Shuhada was designated as an SDGT pursuant to E.O. 13224 in 2023 and as an FTO in 2025.  For more information, please see Treasury’s press releases.