Peregraf
Prime Minister Mohammed Shia al-Sudani has formed a high-level committee to investigate suspicions of corruption involving the mixing and smuggling of crude oil and petroleum products at Iraqi ports and waters. According to the Prime Minister’s media office, the probe focuses on schemes to blend Iranian oil with Iraqi crude and sell it under Iraq’s name.
The announcement comes as Deputy Prime Minister for Energy Affairs and Oil Minister Hayan Abdul-Ghani al-Sawad hosted a senior Iranian delegation in Baghdad on Saturday, September 6, 2025, to discuss cooperation in the fields of oil, gas, and energy. The visiting delegation was led by Deputy Oil Minister Hussein Hussein-Zadeh, joined by other top officials from Iran’s Ministry of Oil and energy sector. The talks emphasized strengthening bilateral coordination between Iraq and Iran across multiple energy areas.
The timing of the meeting drew attention, coming just days after the U.S. Treasury Department escalated sanctions on September 2 against Iranian oil smuggling networks using Iraqi routes. Washington accuses these operations of fueling Tehran’s destabilizing activities in the region.
Treasury Secretary Scott Bessent warned that Iraq “cannot become a safe haven for terrorists,” vowing that the U.S. will continue disrupting Iranian oil revenues. The latest sanctions specifically targeted Waleed Khaled Hameed al-Samarra’i, a dual Iraqi and St. Kitts & Nevis national based in the UAE, accused of running a $300 million annual scheme blending Iranian oil with Iraqi crude for global markets.
These measures follow a July 2025 sanctions package against another smuggling network led by Salim Ahmed Said. Both cases highlight U.S. concerns over Iraq’s vulnerability as a transit point for sanction-busting operations.
Baghdad now finds itself in a sensitive position—pursuing deeper coordination with Tehran on energy while simultaneously under pressure from Washington to curb smuggling networks that exploit Iraqi territory.