WASHINGTON, May 7 - The U.S. Treasury Department announced on Thursday that it had imposed sanctions on Iraq's deputy oil minister and on senior figures within Iran-aligned militias over their support for Iran, the department said.
The Treasury singled out Ali Maarij Al-Bahadly, identifying him as the deputy oil minister it alleges abused his official position to enable the diversion of Iraqi oil. According to the department, that diverted oil was sold to benefit the Iranian regime and its proxy militias operating inside Iraq.
In addition to Al-Bahadly, the sanctions target three senior leaders from militias aligned with Iran - specifically members of Kata'ib Sayyid Al-Shuhada and Asa'ib Ahl Al-Haq. The Treasury statement did not list individual militia leader names in the summary provided.
"Treasury will not stand idly by as Iran's military exploits Iraqi oil to fund terrorism against the United States and our partners," Treasury Secretary Scott Bessent said in the department's statement.
The measures announced carry the standard restrictions applied in U.S. sanctions cases: they freeze any assets that the named individuals hold within United States jurisdiction and generally prohibit American persons and entities from engaging in transactions with those targeted.
Officials described the designation as a targeted effort focused on individuals accused of facilitating economic support for Iran and Iran-aligned armed groups through the diversion and sale of oil. The Treasury's action ties the alleged diversion directly to financial benefit for the Iranian regime and its proxy militias in Iraq, and frames the step as part of preventing resources from being used to support attacks or terrorist activity directed at the United States and its partners.
The announcement does not detail the mechanisms by which the alleged oil diversion was carried out nor does it name the three militia leaders beyond identifying their organizations. The sanctions' immediate legal effect is to immobilize U.S.-based assets of those designated and to limit the ability of American individuals and firms to lawfully transact with them.
Beyond the direct prohibitions on U.S. contacts and the asset freezes, the Treasury characterization emphasizes a counter-financing rationale - that intervening in the flow of oil proceeds can interrupt funding streams said to support armed groups aligned with Iran.
Key factual elements:
- The U.S. sanctioned Iraq's deputy oil minister, Ali Maarij Al-Bahadly, for allegedly abusing his position to divert oil for the benefit of the Iranian regime and proxy militias in Iraq.
- Three senior leaders of Iran-aligned militias Kata'ib Sayyid Al-Shuhada and Asa'ib Ahl Al-Haq were also sanctioned.
- The sanctions freeze any U.S. assets of those designated and generally bar Americans from dealing with them.