Why did the US allow Iraq’s deputy oil minister to help Iran? | | US-Israel War on Iran News

The US Treasury has ordered the deputy oil minister of Iraq, Ali Maarij al-Bahadly, and the leaders of the terrorist groups that support Iran, accusing them of helping Iran sell oil illegally. US sanctions.

“Like a terrorist organization, the Iranian government is stealing the wealth that belongs to the Iraqi people,” said US Treasury Secretary Scott Bessent. “The economy will not stand still while the Iranian military uses Iraqi oil to fund terrorist attacks against the United States and our allies.”

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Neither Iraq nor Iran responded.

Thursday’s sanctions also come as the US and Iran battle for control Hormuz Riverthe most important route for shipping oil from the Gulf region.

Iraq has come under pressure from the US in recent months for allegedly being too close to neighboring Iran. President Donald Trump warned earlier this year that Washington would stop supporting Iraq – if the pro-Iran Nouri al-Maliki becomes Iraq’s prime minister. After that he stopped running.

Let’s take a closer look.

Who did the US accept?

Al-Bahadly is the most prominent person to be recognized by the US on Thursday. He has been in charge of Iraq’s oil sector for many years, first as the head of Iraq’s oil and gas commission. The US Treasury says he later held positions in the oil ministry, including head of the licensing and contracting office, prime minister and deputy head of the ministry, a position he has held since 2024.

Also admitted were Mustafa Hashim Lazim al-Behadili, described as the “leader and financial operator” of the Iranian-backed group Asa’ib Ahl al-Haq, as well as Ahmed Khudair Maksus Maksus and Mohammed Issa Kadhim al-Shuwaili, both known senior figures in Iran’s Kata’ib Sayyid al-Shuhada.

The US Treasury said that al-Behadili “controlled oil smuggling” and dealt directly with Iran and the Islamic Revolutionary Guard Corps’ Quds Force, with whom he had negotiated a deal to export oil from Iran. Maksus and al-Shuwaili are accused of illegally buying weapons.

No one has commented on the allegations.

Is Iran using Iraq to avoid sanctions?

This is the argument of the US Treasury. In its indictment, the Treasury alleges that al-Bahadly “supported the transformation of Iraq’s oil system” to benefit an oil smuggler affiliated with Iran and the Asa’ib Ahl al-Haq. The smuggler, according to Washington, disguised Iranian oil as Iraqi oil to help Tehran avoid sanctions.

The US also alleges that corrupt practices in the Iraqi government allowed the smuggling operation to continue, placing al-Bahadly at the heart of the operation.

Iraq’s Oil Minister, Hayan Abdel-Ghani, said last March that Iranian oil tankers used false Iraqi documents in an attempt to avoid US sanctions.

Experts who spoke to the Reuters news agency in December 2024 said that Iran is believed to be making at least $1bn a year from oil smuggling facilities that divert Iranian oil from Iraqi asphalt, and mix it with Iraqi oil before sending it off as Iraqi. Reuters also reported that Iran receives hard currency from Iraq through the country’s exports, thus avoiding US sanctions on its banks.

What are the US sanctions on Iranian oil?

The Trump administration is describing its sanctions on Iran as part of “greater pressure” to change the Iranian government to its will.

Trump imposed oil sanctions on Iran in 2018 during his first term as president, after abandoning the deal with Tehran. The sanctions prevented Iran from selling its oil freely on international markets, although the US allowed other countries to buy less.

While the Biden administration kept the sanctions in place, Trump increased them in his second term, especially in preparation for a US-Israeli war on Iran.

Oil is a major resource for Iran, which is one of the world’s largest oil producers, accounting for nearly 80 percent of Iran’s exports. Fuel costs account for about a quarter of that amount government budget.

What are the relations between Iraq and Iran?

Iraq and Iran are close allies, especially under the pro-Iranian Coordination Framework bloc that rules Baghdad. The plan represents the Iraqi Shia population, sharing religious ties with the Iranian leadership.

Many Iraqi leaders have lived in Iran, especially before the 2003 overthrow of former Iraqi leader Saddam Hussein in a US-led invasion. This allowed Iran to expand its influence in Iraq through the support of pro-Iranian Shia militias, many of which now have political wings.

Pro-Iranian groups have integrated themselves into major economic sectors, including oil, allowing Iran to use their influence to create a shadow economy that can also finance pro-Iranian groups throughout the Middle East.

But Iraq has a balance problem. Although its relations with Iran are rooted in geography and ideology, Iraqi leaders are also careful not to offend the US, which provides important military and economic support. Mr Trump has already helped to ensure that al-Maliki did not return as Iraq’s prime minister, and has supported Iraq’s new prime minister, Ali al-Zaidi.