Treasury Sanctions Iraqi Oil Official as DOJ Probes $2.6 Billion Iran Trade Mystery

The U.S. ramped up Iran oil sanctions on two fronts Thursday. Treasury blacklisted Iraq’s Deputy Oil Minister and three Iran-backed militia leaders, while ABC News reported DOJ and CFTC probes into roughly $2.6 billion in suspiciously timed oil trades.

Both threads belong to Operation Economic Fury, the campaign squeezing Tehran’s revenue. OFAC’s targets allegedly funneled Iraqi crude to Iran, while regulators are examining whether traders profited on advance knowledge of presidential announcements.

Treasury Targets Iran Oil Smuggling Network

OFAC designated Ali Maarij Al-Bahadly under Executive Order 13902, accusing him of using his ministry posts since 2018 to enrich Iran-linked smuggler Salim Ahmed Said and the Asa’ib Ahl Al-Haq militia.

Today, as part of Economic Fury, Treasury’s Office of Foreign Assets Control increased pressure on Iran and its proxy militias in Iraq by designating individuals and businesses exploiting Iraq’s oil sector and undermining the country’s security. Today’s action includes Ali Maarij…

— Treasury Department (@USTreasury) May 7, 2026

The agency said the network mixed Iranian crude with Iraqi barrels at the VS Oil Terminal, then forged provenance papers before export. Three senior militia figures and four oil-services firms were also blacklisted.

“Like a rogue gang, the Iranian regime is pillaging resources that rightfully belong to the Iraqi people,” said US Treasury Secretary Scott Bessent.

The action extends earlier Economic Fury moves that froze $344 million in Tether (USDT) and seized close to half a billion dollars in regime-linked crypto.

DOJ Probes $2.6 Billion in Bearish Oil Bets

Separately, ABC News reported that DOJ and the CFTC are reviewing four bearish oil positions placed minutes to hours before de-escalation announcements during the 2026 Iran conflict.

🚨 🇺🇸BREAKING: The DOJ and CFTC are now investigating “suspiciously timed” oil trades around Trump’s war announcements.

At least 4 trades under investigation.

Total profits: $2.6 billion.

We’ve been covering this for weeks.

$760 million placed 21 minutes before the April 20… pic.twitter.com/93ZxB8c3Ii

— Brian Allen (@allenanalysis) May 7, 2026

LSEG data shows:

A $500 million bet 15 minutes before Trump delayed strikes on March 23,
A $960 million wager hours before the April 7 ceasefire,
$760 million ahead of Iran’s April 17 Hormuz statement, and
$430 million before the April 21 truce extension.

The data does not name traders.

The pattern echoes Polymarket cases where wallets repeatedly profited on Iran outcomes ahead of public news.

The dual probes raise the same question across oil and crypto markets. Information about Trump’s Iran moves may be leaking before it reaches public channels.

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