The United States is preparing fresh sanctions against a senior Iraqi government official over accusations linked to Iranian oil sales, according to reports circulating Thursday.
The US Treasury Department is expected to sanction Iraqi Deputy Oil Minister Ali Maarij Al-Bahadly over allegations that he helped facilitate Iranian oil exports in violation of existing US sanctions.
Officials claim the Iraqi official played a key role in enabling large scale oil diversion operations involving Iranian crude.
US accuses Iraqi official of disguising Iranian oil as Iraqi supply
According to the allegations, Ali Maarij Al-Bahadly allegedly authorized the diversion of Iraqi crude shipments and assisted in blending Iranian oil with Iraqi supply to hide the origin of the exports.
US officials believe the operation helped Iranian oil move through regional smuggling networks while bypassing international sanctions.
The accusations come as Washington continues intensifying efforts to limit Iran’s oil revenues and crack down on sanctions evasion routes across the Middle East.
The reported move would mark one of the rare instances where the United States directly sanctions a sitting senior Iraqi official.
US increases pressure on Iraq over economic ties with Iran
The planned sanctions also highlight rising US frustration over Baghdad’s ongoing economic and energy links with Tehran.
Iraq and Iran maintain deep trade and energy cooperation, particularly in oil, electricity, and gas sectors. However, Washington has repeatedly warned Iraqi authorities against helping Iran bypass sanctions restrictions.
Analysts say the latest action signals a tougher US stance toward regional networks accused of supporting Iranian energy exports.
The development may also create diplomatic tension between Washington and Baghdad at a time when geopolitical instability and energy market uncertainty remain elevated across the region.
Oil markets closely watch geopolitical tensions in Middle East
Energy traders are expected to monitor the situation closely because any escalation involving sanctions, Iranian oil exports, or Iraqi energy operations could affect global crude supply expectations.
Oil markets have already remained highly volatile in recent weeks due to ongoing Middle East tensions and uncertainty surrounding US Iran negotiations.
The latest sanctions move adds another layer of pressure to an already sensitive geopolitical and energy landscape.