The US Treasury on Tuesday imposed sanctions on an Iraqi-Kittitian businessman and a network of companies and vessels accused of smuggling Iranian oil disguised as Iraqi crude.
The sanctions target Waleed Khaled Hameed al-Samarra’i, based in the United Arab Emirates, along with his firms Babylon Navigation DMCC and Galaxy Oil FZ LLC, and nine Liberia-flagged tankers.
Washington said the network covertly blended Iranian and Iraqi oil through ship-to-ship transfers in the Persian Gulf and in Iraqi ports, marketing it as solely Iraqi in origin.
The Treasury estimated the operation generated about $300 million annually for both Iran and al-Samarra’i.
It accused the group of using shell companies in the Marshall Islands to obscure ownership of vessels and employing tactics such as night transfers and location spoofing to hide activity.
“Iraq cannot become a safe haven for terrorists, which is why the United States is working to counter Iran’s influence in the country,” Treasury Secretary Scott Bessent said in a statement.
“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.”
The measures follow sanctions announced in July against another network accused of blending Iranian and Iraqi oil.
For two consecutive years, Chinese records show imports of “Iraqi” oil exceeding Iraq’s declared shipments by around 100,000 barrels per day—worth more than $2.5 billion annually.
The gap has grown since 2021, suggesting a persistent pattern of disguised flows, according to experts.
Iraq’s oil minister Hayyan Abdul-Ghani acknowledged earlier this year that Iranian tankers were using forged Iraqi documents and said the matter had been reported to the United States.
