The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) increasing economic pressure on Iran and its proxy militias in Iraq by designating individuals and businesses exploiting Iraq’s oil sector and undermining the country’s security. This action includes Ali Maarij Al-Bahadly, Iraq’s Deputy Minister of Oil, who abuses his position to facilitate the diversion of oil to be sold for the benefit of the Iranian regime and its proxy militias in Iraq.
OFAC is also designating three senior leaders of Iran-aligned terrorist militias Kata’ib Sayyid Al-Shuhada and Asa’ib Ahl Al-Haq. The United States will continue to hold these groups and other Iran-aligned terrorist militias in Iraq, such as Kata’ib Hizballah, accountable for their attacks against U.S. personnel and civilians, diplomatic facilities, and businesses across Iraq, which the groups conduct without regard for Iraq’s sovereignty or democratic process.
“Like a rogue gang, the Iranian regime is pillaging resources that rightfully belong to the Iraqi people,” said Secretary of the Treasury Scott Bessent.
OFAC’s actions are pursuant to Executive Orders which targets key sectors of Iran’s economy, including Iran’s petroleum sector, and which targets terrorist groups, their supporters, and those who aid acts of terrorism. Asa’ib Ahl Al-Haq was designated as a Specially Designated Global Terrorist and as a Foreign Terrorist Organization (FTO) in 2020. Kata’ib Sayyid Al-Shuhada was designated as an FTO in 2025.
Iraq’s Deputy Minister of Oil, Ali Maarij Al-Bahadly who has been instrumental in facilitating the diversion of Iraqi oil products to benefit known Iran-affiliated oil smuggler Salim Ahmed Said as well as Iran-backed terrorist militia Asa’ib Ahl Al-Haq (AAH). For years, Maarij has used his official positions—first as the head of the Iraqi parliament’s oil and gas committee, and then within the Iraq Ministry of Oil—to enrich Said, AAH, and by extension, Iran.
OFAC designated Said in June 2025 for running a network of companies selling Iranian oil falsely declared as Iraqi oil to avoid sanctions, including designated VS Oil Terminal FZE (VS Oil). Integral to this operation was Said’s ability to obtain favored access to Iraqi oil and procure forged documentation from Iraqi government officials, legitimizing illicit oil. To that end, Said was responsible for bribing complicit officials in the Iraqi government, as well as reportedly installing Maarij in his official position.
Secretary Bessent warns that “Treasury will not stand idly by as Iran's military exploits Iraqi oil to fund terrorism against the United States and our partners."