Iraqi Oil Minister Meets Iranian Delegation Amid Heightened U.S. Sanctions on Tehran’s Oil Smuggling

Peregraf

Deputy Prime Minister for Energy Affairs and Minister of Oil, Eng. Hayan Abdul-Ghani Al-Sawad, received a senior Iranian oil delegation on Saturday, September 6, 2025, to discuss prospects for cooperation in the fields of oil, gas, and energy.

The Iranian side was led by Dr. Hussein Hussein-Zadeh, Deputy Minister of Oil and Chairman of the Oil Retirement Funds, and included Abbas Beheshti, Deputy Minister for Iraq Affairs; Dr. Soleiman Ghassemian, Director General of Asia, Africa, and Oceania at the International Agency of the Iranian Oil Ministry; and Javad Gomari, Director General of the Dehloran Petrorefining Complex. The meeting was also attended by Iraq’s Deputy Oil Minister for Extraction Affairs, Bassem Mohammed Khudair.

According to a statement from the Oil Ministry, both sides explored opportunities to deepen bilateral cooperation across multiple energy sectors, underscoring the importance of coordination between two neighboring countries with extensive energy interdependence.

The talks come just days after the U.S. Treasury Department announced a new round of sanctions on September 2 targeting Iranian oil smuggling schemes that rely on Iraqi routes to evade detection. Washington has intensified efforts to block revenue streams fueling Tehran’s activities, which the U.S. says undermine regional stability.

Treasury Secretary Scott Bessent emphasized that “Iraq cannot become a safe haven for terrorists,” adding that the measures aim to counter Iran’s influence by disrupting oil revenues used to finance attacks against the U.S. and its allies. He reaffirmed Washington’s commitment to “an oil supply free from Iran” and vowed to keep pursuing Tehran’s networks.

The latest sanctions target Waleed Khaled Hameed al-Samarra’i, a dual Iraqi and St. Kitts & Nevis citizen based in the UAE, accused of running a complex network of shipping and trading companies. According to the Office of Foreign Assets Control (OFAC), al-Samarra’i’s network covertly blends Iranian oil with Iraqi crude and markets it as purely Iraqi, generating an estimated $300 million annually in illicit revenue for Iran.

These measures build on sanctions imposed in July 2025 against another smuggling network led by Salim Ahmed Said. Both operations are seen by U.S. officials as central nodes in Tehran’s strategy to circumvent sanctions on its petroleum sector.

While Baghdad pursues closer coordination with Tehran on energy issues, the U.S. pressure campaign underscores Iraq’s delicate position between its strategic alliance with Washington and its longstanding ties with Iran.