Washington DC [US], May 8 (ANI): The United States on Thursday (local time) imposed sanctions on an Iraqi oil ministry official and senior Iran-backed militia leaders, accusing them of facilitating oil smuggling operations and supporting terrorism-linked activities in Iraq.

The US Department of the Treasury's Office of Foreign Assets Control (OFAC) said in a statement that it was targeting individuals and entities involved in exploiting Iraq's oil sector and undermining the country's stability while benefiting Iran and its allied militias.

According to OFAC, Iraq's Deputy Minister of Oil, Ali Maarij Al-Bahadly, was sanctioned for allegedly abusing his position to facilitate the diversion of Iranian oil for sale, which was then sold for the benefit of the Iranian government and Iran-backed armed groups in Iraq.

The Treasury Department alleged that Al-Bahadly played a key role in enabling oil smuggling networks by granting export rights and supporting schemes that mixed Iranian oil with Iraqi crude for sale in international markets.

The US also accused him of falsifying documentation related to oil shipments.

The sanctions also target senior figures from Iran-aligned militia groups, including Kata'ib Sayyid al-Shuhada and Asa'ib Ahl al-Haq, both of which the US has designated as terrorist organisations.

The US Treasury said these groups have been involved in attacks against American personnel, diplomatic facilities, and businesses in Iraq, while acting in ways that undermine Iraqi sovereignty and its democratic process.

'Like a rogue gang, the Iranian regime is pillaging resources that rightfully belong to the Iraqi people,' US Treasury Secretary Scott Bessent was quoted as saying.

'Treasury will not stand idly by as Iran's military exploits Iraqi oil to fund terrorism against the United States and our partners,' he added.

OFAC said the sanctions were issued under Executive Orders targeting Iran's petroleum sector and designated terrorist organisations.

As a result of the action, all assets of the designated individuals and entities under US jurisdiction are frozen, and US persons are generally prohibited from engaging in transactions with them. The US also warned of possible secondary sanctions on foreign financial institutions involved in facilitating such activities.

The move comes as part of continued US efforts to increase economic pressure on Iran and disrupt financing networks linked to Tehran and its regional allies amid the growing tension between the two sides over the West Asia crisis. (ANI)