The US has imposed sanctions on Iraq's deputy Oil Minister, Ali Maarij al-Bahadli, for abusing his government position to divert Iraqi oil in support of the Iranian regime and its terrorist proxies, according to State Department spokesman Tommy Pigott. The sanctions were imposed on Thursday, May 7, 2026.

The US claims that as part of a scheme to evade sanctions, Iranian oil was fraudulently mixed with Iraqi oil and sold for Iran's benefit.

The move is part of Washington's efforts to pressure the incoming Iraqi government to sever links with Tehran, with which it has close relations.

The US has been escalating pressure on the Iraqi state to break off alleged cooperation with armed Iraqi Shia groups linked to Iran. The US is looking for concrete actions from Iraq to cast aside these groups before resuming full cooperation.

The immediate outlook is that the US will continue to monitor Iraq's actions and may take further measures if it does not see sufficient cooperation from the Iraqi government. The US President has congratulated Iraq's Prime Minister-designate Ali al-Zaidi and voiced hope for working with him.