Iraqi lawmakers raised urgent concerns during a special session with the Minister of Oil regarding reports of Iranian oil smuggling. Parliament’s Oil and Energy Committee called the minister, along with top officials from SOMO and the Transportation Company, to answer direct questions. These discussions focused on allegations that Iranian crude entered international markets disguised as Iraqi oil.
Additionally, parliament launched this inquiry after recent reports linked some exports under the SOMO label to Iranian oil. Lawmakers believe this could violate international sanctions. More importantly, it might threaten Iraq’s essential revenue stream from legal oil exports.
The committee demanded transparency and accountability. Members asked the minister to explain oversight failures and clarify how such shipments could pass unnoticed. One lawmaker stressed that protecting the oil sector must remain Iraq’s top priority.
This investigation followed a strong warning from the United States. Washington told Iraq that any continued smuggling of Iranian oil would trigger severe penalties. Officials warned that SOMO could face sanctions. The U.S. might also freeze $350 million of Iraq’s oil revenues.
In response to these threats, Iraqi lawmakers moved quickly. They emphasized that oil revenues support over 90% of Iraq’s budget. Therefore, they viewed any risk to exports as a threat to national financial stability.
In addition, the United States imposed new sanctions on several international entities. These included six oil-related companies and four vessels. Officials named 22 more firms, mostly based in Hong Kong, Türkiye, and the UAE, that allegedly helped Iran’s Islamic Revolutionary Guard Corps sell oil abroad.
Iraqi MPs stressed that any damage to the country’s oil exports could destabilize the entire economy. Several members insisted on full accountability. They also promised to investigate deeper if needed.
“This issue affects the core of Iraq’s financial system,” one committee member stated. “The oil sector must operate cleanly and clearly.”
Iraq’s future energy cooperation with key international partners may now depend on the outcome of this investigation. Officials said Iraq must demonstrate strong enforcement of oil export laws. Lawmakers believe such steps will preserve both transparency and international trust.