“The US Treasury announced on Thursday new sanctions on people and entities accused of exploiting Iraq's oil sector to benefit Iran and its proxy militias.”

US Treasury DepartmentPress releaseMay 7, 2026Read the original

OFAC designations on Thursday 7 May 2026.

Our verdict

True

Treasury sanctioned Iraq's deputy oil minister and militia leaders on 7 May 2026 over diverting Iraqi oil to Iran's benefit.

What we found

OFAC named Deputy Oil Minister Ali Maarij Al-Bahadly and leaders of Kata'ib Sayyid al-Shuhada and Asa'ib Ahl al-Haq. Iraq's oil ministry denied the allegations. The claim is accurate.

The evidence

1 of 2 sources support the claim; none contradict it.

Contradict 0Support 1Background 1

Supports the claim
US sanctions Iraq's deputy oil minister and militias over Iran support. [1]
Background
Iraq's oil ministry denied wrongdoing. [2]

How we checked

We checked the claim against Al-Monitor (Reuters), Iraq Business News. We reviewed 2 relevant sources.

Sources

[1]Al-Monitor (Reuters) · US sanctions Iraq's deputy oil minister, militias over Iran support
[2]Iraq Business News · US sanctions for alleged oil smuggling; ministry denies wrongdoing

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