The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced sanctions against a sophisticated oil smuggling network operated by an Iraqi‑Kittitian businessman, accused of laundering Iranian oil under the guise of Iraqi origin, reports gCaptain.
U.S. Unmasks Iran-Iraq Smuggling Plot
According to U.S. officials, the network concealed Iranian oil by blending it with Iraqi oil and marketing the mixture as exclusively Iraqi, in order to bypass international sanctions. The scheme has reportedly generated hundreds of millions of dollars for both the Iranian regime and its partners.
“Iraq cannot become a safe haven for terrorists, which is why the United States is working to counter Iran’s influence in the country,” said Treasury Secretary Scott Bessent. “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 individual at the center of the operation holds dual citizenship in Iraq and St. Kitts & Nevis and is based in the United Arab Emirates. He oversees logistics, shipping, and global energy marketing through entities under his control.
The U.S. Treasury estimates the network has funneled approximately $300 million per year into Iran’s coffers.
The smuggling operation employed a fleet of vessels operating under foreign flags and used tactics such as ship-to-ship transfers in the Arabian Gulf, blending oil at sea, nighttime operations, AIS spoofing, and deliberate gaps in location reporting to obscure their activities.
These latest sanctions follow previous actions taken by OFAC against similar networks smuggling blended oil through deceptive maritime practices.
Under the sanctions, all U.S.-based assets of the designated individuals and entities are frozen, and U.S. persons are barred from conducting transactions with them.
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Source: gCaptain
