The Iraq Sanctions Strike That Signals Washington’s New Middle East Playbook
Strait of Hormuz Crisis Triggers Global Fertilizer Supply Shock Malaysia’s Maharani Freeport could emerge… Simon Watkins is a former senior FX trader and salesman, financial journalist, and best-selling author.
He was Head of Forex Institutional Sales and Trading for… Iraq’s Deputy Minister of Oil, Ali Maarij Al-Bahadly, along with many other individuals and businesses, was last week included by the U.S.
Treasury Department’s Office of Foreign Assets Control (OFAC) in sanctions targeting the exploitation of Iraq’s oil sector to benefit Iran and Iran-aligned militias.
These moves by OFAC are part of a ramping up of pressure on Iraqi entities that continue to deal with Iran, effectively bankrolling its current regime and the activities of its military, political, religious, and terrorist proxies.
“Like a rogue gang, the Iranian regime is pillaging resources that rightfully belong to the Iraqi people,” said U.S.
“And the Treasury will not stand idly by as Iran’s military exploits Iraqi oil to fund terrorism against the United States and our partners,” he added.
Much more of this is likely to follow, with major ramifications for the global oil market.
highlighted that Maarij had used his official positions, including as head of the Iraqi parliament’s oil and gas committee and subsequently within the Ministry of Oil, to facilitate the diversion of Iraqi oil products for the benefit of oil smuggler Salim Ahmed Said and Iran-backed militia Asa’ib Ahl Al-Haq.
OFAC alleged that Maarij authorised the trucking of several million dollars’ worth of oil per day from the Qayara Oil Field to VS Oil Terminal FZE (VS Oil) in Khor al Zubair for export, where Iranian oil was allegedly mixed with Iraqi oil before being shipped to market.
As underlined by the OFAC documents, this latest sanctions package on Iraq is part of the Treasury Department’s effort to maintain maximum pressure on Iran and target the regime’s ability to generate, move, and repatriate funds.
Crucially, given the recent meeting between U.S.
President Donald Trump and his Chinese counterpart Xi Jinping, OFAC made it clear that the Treasury is also prepared to impose secondary sanctions on foreign financial institutions that facilitate Iran’s activities, including those connected to China’s independent oil refineries.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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