- The US imposed sanctions on a UAE-based businessman and his network for disguising Iranian oil as Iraqi to evade restrictions.
- Nine Liberia-flagged tankers and seven associated companies were designated for involvement in blending operations.
- Iraq faces heightened scrutiny amid widespread AIS spoofing at Khor al Zubair port and repeated allegations of illicit oil trades.
The US Treasury’s Office of Foreign Assets Control (Ofac) announced fresh sanctions against Waleed Khaled Hameed al-Samarra’i, a dual citizen of Iraq and St Kitts and Nevis, accusing him of generating hundreds of millions of dollars through oil smuggling schemes. His UAE-based firms — Babylon Navigation DMCC and Galaxy Oil FZ-LLC — were designated for providing shipping, logistics, and trading services linked to these operations. Nine Liberia-flagged tankers under Babylon’s control were also sanctioned for blending Iranian and Iraqi oil at sea and in ports.
Rising Pressure on Iraq’s Role
This marks the second crackdown in less than two months, following sanctions in July against a network led by UK-Iraqi national Salim Ahmed Said. The US has increased pressure on Baghdad, with Iraq’s State Oil Marketing Company (Somo) earlier identifying 11 tankers accused of illicit loadings at Umm Qasr and Khor al Zubair. Iraq’s Ministry of Oil, however, has denied involvement in Iranian crude imports or re-exports.
AIS Manipulation and Shadow Fleet Concerns
Khor al Zubair port remains a hotspot for deceptive shipping practices, with Lloyd’s List Intelligence (LLI) identifying over 920 tanker and LPG voyages in the first half of 2025, nearly half of which involved falsified AIS trails. Such practices allow tankers to mask true cargo origins, aligning with the broader activities of the shadow fleet engaged in sanctioned oil trades from Iran, Russia, and Venezuela.
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Source: Lloyd’s List
