The United States sanctioned Iraq's deputy oil minister and three militia leaders on Thursday, May 7, for their support of Iran and exploitation of the Iraqi oil sector. The Treasury Department accused deputy oil minister Ali Maarij Al-Bahadly of abusing his position to facilitate the diversion of oil for the benefit of the Iranian regime and its proxy militias in Iraq, aiding Tehran in bypassing restrictions on oil exports and violating an international embargo.
The sanctions also target three senior leaders of the Iran-aligned militias Kata’ib Sayyid Al-Shuhada and Asa’ib Ahl Al-Haq. These measures freeze any U.S. assets held by those targeted and generally bar Americans from dealing with them.
Treasury Secretary Scott Bessent stated that the Treasury will not stand idly by as Iran's military exploits Iraqi oil to fund terrorism against the United States and its partners. These actions ramp up pressure on Tehran and its regional proxies as the Trump administration seeks a deal to end a war in its 10th week.