Iraq oil sanctions dispute tensions increased after Baghdad rejected American accusations against a senior Iraqi oil official. The Iraqi Ministry of Oil denied claims that its deputy minister helped Iran avoid U.S. sanctions through oil-related activities.
The dispute began after the U.S. Department of State announced sanctions against Iraqi Deputy Oil Minister Ali Maarij al-Bahadli on Thursday. American officials accused him of using his position to support Iranian-linked operations and assist Tehran in bypassing international sanctions.
According to the U.S. allegations, al-Bahadli participated in activities involving the blending of Iraqi and Iranian crude oil. Washington claimed the operations aimed to help Iran continue exporting oil despite existing American sanctions.
The Iraqi Ministry of Oil strongly rejected the accusations and defended the deputy minister against the allegations. Officials stated that all claims should rely on evidence, transparency, and verified facts rather than unproven accusations.
The ministry also clarified that al-Bahadli does not oversee crude oil export operations or loading procedures. Officials explained that responsibilities related to oil marketing, exports, and shipping activities fall outside his direct authority.
The Iraq oil sanctions dispute also prompted a response from Iraq’s State Organization for Marketing of Oil, known as SOMO. As well as, the organization denied reports claiming Iraqi ports or territorial waters witnessed oil blending activities involving Iranian crude.
SOMO stressed that Iraq follows official procedures in handling oil exports and maritime operations. Officials rejected suggestions that Iraqi facilities participated in operations designed to help Iran avoid sanctions enforcement.
The latest dispute reflects growing pressure from Washington on Baghdad regarding relations with Iranian-linked organizations and businesses. The United States continues to enforce strict sanctions on Iran’s energy sector and monitors regional oil trading activities closely.
American authorities have repeatedly warned companies and governments against participating in transactions involving sanctioned Iranian oil exports. US sanctions policies target entities accused of helping Iran sell or transport crude oil internationally.
The Iraq oil sanctions dispute comes months after previous sanctions targeted companies connected to an Iraqi businessman over similar allegations. Iraqi officials continue denying involvement in activities linked to sanctions evasion operations.
Political and economic analysts believe the issue could increase diplomatic pressure between Baghdad and Washington. Iraq maintains important economic ties with both the United States and Iran, making regional energy disputes politically sensitive for Iraqi authorities.