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Iraq denies involvement in Iranian oil smuggling under US sanctions
Baghdad, August 8, 2025 – Iraqi authorities have firmly rejected claims that the country or its oil sector is involved in smuggling operations aimed at circumventing US sanctions on Iranian crude exports. The denial comes after the United States imposed sanctions in early July against six entities and four vessels accused of facilitating the transport, sale, or marketing of Iranian oil.
According to Washington, the alleged smuggling networks enabled the transfer of billions of dollars in Iranian oil, sometimes misrepresented as Iraqi crude or mixed with it. The US Treasury cited an Iraqi businessman accused of leading a group of companies profiting from these illicit activities.
On Friday, Ali Nizar Fayeq al-Shatari, Iraq’s governor at OPEC and director of the State Oil Marketing Organization (SOMO), denied any Iraqi involvement. "There are no smuggling or blending operations in Iraqi ports or territorial waters," he told the Iraqi News Agency (INA). "Claims suggesting the presence of sites used for smuggling or mixing oil from neighboring countries are completely false."
In a recent security campaign, an AFP photographer accompanied Iraqi naval forces in southern waters as they inspected vessels' documentation and licenses, aiming to ensure maritime compliance.
Meanwhile, the US Treasury continues to target individuals and companies linked to Iran’s oil trade. Late July saw further sanctions against over 115 persons, firms, and ships, some allegedly under the control of Mohammad Hossein Shamkhani, son of a senior adviser to Iran's Supreme Leader.
Tehran denounced the renewed US sanctions as “economic terrorism” and accused Washington of attempting to sabotage the Iranian economy.