Iraq Denies U.S. Claim Deputy Minister Helped Iran’s Oil Sales
Iraq's Oil Ministry rejected U.S. sanctions on its deputy minister, claiming he had no role in exporting or marketing crude despite American evidence of mixed Iranian oil sales.
Iraq’s Oil Ministry swiftly denied U.S. accusations that Deputy Minister Ali Maarij al-Bahadly helped divert Iraqi crude to benefit Iran, even as the Trump administration froze his assets and banned Americans from doing business with him.
The State Department sanctioned al-Bahadly on Thursday for abusing his position to mix Iranian oil with Iraqi crude and sell it under false documentation, part of a larger crackdown on networks that “undermine Iraq’s sovereignty, rob the Iraqi people of national resources, and fuel violence against both Iraqis and Americans.” The action also hit senior figures from Kata’ib Sayyid Al-Shuhada and Asa’ib Ahl Al-Haq, both already designated as terrorist organizations.
This isn’t the first time forged Iraqi paperwork has surfaced. Iraqi officials admitted earlier this year that tankers intercepted in the Gulf carried fake documents allowing Iranian oil to move as Iraqi. Tehran, predictably, denied involvement. The pattern suggests Baghdad’s denials protect more than one official; they shield a system that lets Iranian proxies siphon Iraq’s own wealth.
The ministry told state news agency INA it is willing to investigate but insisted crude export operations, marketing, loading onto tankers, and related procedures “were not part of al-Bahadli’s job.” That narrow job description feels convenient when the U.S. alleges the deputy minister used his government role precisely to enable those same operations for Iran and its militias.
The sanctions highlight a deeper failure: years of Iranian-aligned militias and officials treating Iraq’s oil sector as a sanctions-evasion pipeline. While Baghdad talks sovereignty, its deputy minister stands accused of handing national resources to a regime that arms the very groups destabilizing the country.
Whether an Iraqi investigation materializes or simply buries the scheme remains the real test. The U.S. has now placed clear markers on who it believes profits from the fraud; Baghdad’s response will show whether it intends to reclaim its oil wealth or keep enabling its loss.
Original reporting: OilPrice.com.
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