meta_id 3133752

On May 7, 2026, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) designated individuals and entities involved in oil smuggling and terrorism financing in Iraq as part of its Economic Fury campaign targeting Iran and its proxy militias. The designations include Ali Maarij Al-Bahadly, Iraq's Deputy Minister of Oil, who facilitated the diversion of Iraqi oil to benefit Iran and Iran-backed terrorist militias. OFAC also designated three senior leaders of Iran-aligned terrorist organisations: Mustafa Hashim Lazim Al-Behadili from Asa'ib Ahl Al-Haq (AAH), Ahmed Khudair Maksus Maksus from Kata'ib Sayyid al-Shuhada (KSS), and Mohammed Issa Kadhim al-Shuwaili, also from KSS. Four Iraqi companies operating in the oil sector and owned or controlled by Al-Behadili were also designated. Al-Bahadly allegedly used his positions within Iraq's Ministry of Oil to grant exportation rights to companies linked to Iran-affiliated oil smuggler Salim Ahmed Said, enabling the diversion of millions of dollars' worth of oil daily from the Qayarah oil field. Al-Behadili oversaw oil smuggling operations and mineral industry activities for AAH, coordinating with the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF). Al-Shuwaili arranged payments of millions of dollars to Hizballah for weapons purchases and coordinated logistics for weapons transfers into Iraq. The designations were made pursuant to Executive Order 13902, targeting Iran's petroleum sector, and Executive Order 13224, targeting terrorist groups and their supporters. As a result, all property and interests in property of the designated persons in the United States or controlled by U.S. persons are blocked. U.S. persons are prohibited from conducting transactions involving designated persons unless authorised by OFAC. Violations may result in civil or criminal penalties. Foreign financial institutions engaging in significant transactions on behalf of designated persons risk secondary sanctions.