The US has warned Iraq it could face sanctions over what it called Iranian oil smuggling and ties to armed groups, threatening to freeze millions in revenue and target state oil firm SOMO, Iraqi media reported.
“The United States has warned the Iraqi government that ongoing oil smuggling operations involving Iranian crude could trigger severe sanctions, potentially targeting Iraq's State Organization for Marketing of Oil (SOMO) and freezing $350 million in oil revenue unless implicated individuals are held accountable,” Erbil-based Kurdistan24 wrote Saturday.
On July 3, the State Department issued a direct warning to Baghdad, citing what it called the smuggling of Iranian crude through Iraqi networks and naming six sanctioned entities and four tankers involved in the trade.
The Treasury later designated 22 companies across Turkey, the UAE, and Hong Kong for facilitating sales that fund Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF).
“We have contacted the federal Minister of Oil to come to parliament so we can question him about this matter, as this smuggling jeopardizes Iraq’s exports,” said committee member Sabah Subhi in remarks to Kurdistan24.
“Ninety-five percent of Iraq’s revenue depends on oil exports,” he added, reflecting the dilemma as Iraq is once again stuck between allegiances with Washington and its neighbor, Tehran.
US pressure builds over armed groups tied to Iran
The US warning comes alongside growing concern over Iranian-backed armed groups operating within Iraq’s Popular Mobilization Forces (PMF).
A US State Department spokesperson told Iraq’s Shafaq News on Saturday, “These groups continue to engage in violent and destabilizing activities in Iraq.
“We remain concerned about Iranian-backed militia groups, which operate within the Popular Mobilization Forces, including individuals and groups affiliated with designated foreign terrorist organizations.”
On Sunday, Prime Minister Mohammed Shia al-Sudani met with US Chargé d’Affaires Steven Fagin in Baghdad amid US calls for Iraq to take direct steps to rein in sanctioned militias and safeguard regional stability.
US officials have consistently flagged groups within or aligned with the Popular Mobilization Forces—including Kataib Hezbollah and Asaib Ahl al-Haq—for their ties to Iran’s Revolutionary Guard-Quds Force and involvement in attacks on US personnel in Iraq.
“Europeans can no longer move about comfortably in their own countries,” Mohammad Javad Larijani, a former senior judiciary official who also served as a top adviser to the Supreme Leader, warned in comments broadcast on state television.
“It’s entirely possible that in the near future, five drones could strike a European city.”
The statement comes as the Islamic Republic faces renewed international pressure over its nuclear program. Britain, France and Germany, three signatories to the 2015 nuclear agreement, are considering the option of triggering a snapback of United Nations sanctions if Iran is deemed non-compliant.
This month, Iran expelled the International Atomic Energy Agency's inspectors, accusing them of being a political tool and having given intelligence to aid the attacks made by Israel and the US on Iran's nuclear facilities last month.
Last week, the UK Parliament’s Intelligence and Security Committee (ISC) released a report warning that Iran poses one of the most severe state-based threats to British national security, on par with adversaries like Russia and China.
And last year, the European Parliament also issued warnings about the threat posed by Iran. A statement said: "The Iranian regime’s use of criminal networks as terrorist proxies in Europe poses a grave threat to our internal security."
Larijani's warning to Europe comes just days after he suggested US President Donald Trump could be assassinated by a drone strike while vacationing in Florida.
“Trump has done something [in supporting Israel's war on Iran] so that he can no longer sunbathe in Mar-a-Lago,” he said. “As he lies there with his stomach to the sun, a small drone might hit him in the navel. It’s very simple.”
'Israel, US may attack Iran again'
Larijani said that it is possible that Israel and the United States will seek to launch another attack on Iran.
“The United States and Israel know that if they strike again, our response will be heavier and more unexpected. America is calculating carefully."
Speaking of last month's war with Israel, sparked by surprise attacks on Iran on June 13, Larijani said: “The war began with us being surprised. We did not expect such technologies to be used in the attack. They had inserted and stationed many operatives inside Iran," over 700 Iranians arrested in the wake of the war accused of supporting Israel.
“The enemy can no longer rely on its old methods. This time, we will not be surprised," he added.
Mehdi Mohammadi, a strategic adviser to Mohammad-Bagher Ghalibaf, posted the image in an Instagram story on Saturday.
The image showed a map of Israel with two mushroom clouds positioned over its territory—an iconography widely recognized as symbolizing atomic blasts.
A few hours later, Mohammadi posted a second Instagram story seeking to clarify his position.
“Hello friends,” he wrote. “That story was posted by the admin of my page and was deleted a few minutes later. I personally do not believe that developing nuclear weapons would enhance Iran’s deterrence. At the very least, it’s an extremely complex issue."
"Just as possessing nuclear weapons hasn’t prevented Israel from receiving heavy blows, or enabled Ukraine to strike Russia decisively, the military utility of nuclear arms is far more limited than most people imagine,” he added.
Iran continues to deny any ambition to acquire nuclear weapons, dismissing international concerns as politically driven.
Last month, American airstrikes targeted major Iranian nuclear facilities at Fordow, Natanz, and Isfahan. The attacks came after days of Israeli campaign against Iran where the Jewish State used cruise missiles and deep-penetration bombs to damage infrastructure and affiliated military units.
In October, a group of lawmakers called on Iran's Supreme National Security Council to review the country's defense doctrine and consider adopting nuclear weapons.
