Washington Sanctions UAE-Based Oil Network Blending Iranian Oil with Iraqi Supplies

Peregraf 

The U.S. Treasury Department today announced a significant escalation in sanctions aimed at disrupting Iranian oil smuggling schemes that exploit Iraqi routes. This latest action continues efforts by the Office of Foreign Assets Control (OFAC) to block revenue streams fueling the Iranian regime.

Treasury Secretary Scott Bessent stated, “Iraq cannot become a safe haven for terrorists, which is why the United States is working to counter Iran’s influence in the country. By targeting Iran’s oil revenue stream, Treasury will further degrade the regime’s ability to carry out attacks against the United States and its allies.” He added, “We remain committed to an oil supply free from Iran and will continue our efforts to disrupt ongoing attempts by Tehran to evade U.S. sanctions.”

This new sanction follows and builds upon OFAC’s July 3, 2025 sanctions targeting Salim Ahmed Said’s network responsible for smuggling blended Iraqi and Iranian oil.

Key Sanctioned Entity: Waleed al-Samarra’i Network

The latest measures specifically target Waleed Khaled Hameed al-Samarra’i, a dual citizen of Iraq and St. Kitts & Nevis, based in the UAE, who operates a network of companies managing vessels involved in selling Iranian oil to global markets. His network covertly blends Iranian oil with Iraqi oil, selling it as purely Iraqi to evade detection. Conservative estimates place the annual value of this operation at approximately $300 million in illicit revenue for Iran.

These sanctions are part of the U.S.’s broader “maximum economic pressure” campaign targeting Tehran, aligned with National Security Presidential Memorandum-2. The actions are being executed under Executive Order 13902, which broadly targets the Iranian petroleum and petrochemical sectors.