ERBIL, Kurdistan Region of Iraq - Iraq’s oil ministry on Thursday denied the accusations underpinning US sanctions imposed on Deputy Oil Minister Ali Maarij al-Bahadly, stressing that his position is unrelated to crude oil export and marketing operations after Washington accused him of diverting funds to pro-Iran groups.

In a statement, the ministry said it respects Iraqi legal procedures and institutions, while emphasizing the importance of dealing with accusations “with transparency and responsibility based on evidence and facts.”

The ministry also announced its readiness to cooperate with and support “any fair investigation into the allegations,” citing its confidence in Iraq’s judiciary and Integrity Commission.

It added that crude oil exports, marketing operations, tanker loading, and related procedures are handled by specialized entities and companies under approved mechanisms and are not part of Bahadly’s duties.

The ministry noted that Iraq’s State Organization for Marketing of Oil, known as SOMO, had previously issued a statement explaining export and marketing mechanisms and denying claims related to the matter.

According to the Treasury Department’s Office of Foreign Assets Control (OFAC), Bahadly allegedly facilitated the diversion of Iraqi oil products to support Iran-linked oil smuggler Salim Ahmed Said and the Iran-backed armed group Asa’ib Ahl al-Haq (AAH), which Washington designates as a terrorist organization.

The deputy briefly served as acting oil minister in 2024 when his superior, Hayyan Abdul-Ghani, required a medical procedure in the US. Bahadly at the time said that “all the administrative and financial powers granted to the minister” were bestowed upon him during the latter's absence.

The sanctions were issued as part of Washington’s broader “Operation Economic Fury” campaign aimed at disrupting Iran’s revenue networks.

The package also targeted AAH-linked economic official Mustafa Hashim Lazim al-Behadili and senior Kataib Sayyid al-Shuhada figure Ahmed Khudair Maksus Maksus over alleged financial and weapons-related activities tied to Iran-backed groups.