US sanctions Iraq deputy oil minister and Iran-backed militia figures over oil sales allegations

The United States has sanctioned Iraq's deputy oil minister, Ali Maarij al-Bahadly, and three leaders of Iran-backed armed groups over allegations linked to Iranian oil sales and attacks on US personnel.

The Treasury Department said the action was taken on Thursday through its Office of Foreign Assets Control, or OFAC, as part of efforts to increase pressure on Iran.

It said al-Bahadly had used senior roles in Iraq's oil sector to help divert oil products for the benefit of an Iran-affiliated smuggler.

OFAC also designated leaders linked to Kata'ib Sayyid al-Shuhada and Asa'ib Ahl al-Haq, saying the groups, together with Kata'ib Hezbollah, were held responsible for attacks on US personnel and civilians.

Treasury Secretary Scott Bessent said the department would not stand by while Iran used Iraqi oil to fund what he called terrorism.

The move is significant because it targets a senior Iraqi official as Washington steps up pressure on Tehran.

It also comes as negotiations over a possible US-Iran deal show tentative signs of progress, according to the Treasury statement.

The department said al-Bahadly had previously held positions including head of the Iraqi parliament's oil and gas committee before serving in the Iraq Ministry of Oil.

It said he had helped facilitate the diversion of Iraqi oil products to benefit Salim Ahmed Said, whom the US sanctioned last year.

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