The U.S. Treasury Department on Thursday announced a new round of sanctions targeting individuals and entities accused of exploiting Iraq's oil sector to benefit Iran and its proxy militias, escalating Washington's pressure campaign against Tehran.

Bessent Says U.S. Will Not ‘Stand Idly By'

Treasury Secretary Scott Bessent said on X that the Iranian regime was "pillaging resources that rightfully belong to the Iraqi people" and using Iraqi oil revenues to support militant activities.

"Like a rogue gang, the Iranian regime is pillaging resources that rightfully belong to the Iraqi people," Bessent said. "Treasury will not stand idly by as Iran's military exploits Iraqi oil to fund terrorism against the United States and our partners."

How Sanctions Target Iran's Oil Financing

According to the Treasury Department, the sanctions were issued by the Office of Foreign Assets Control against Ali Maarij Al-Bahadly, identified by Treasury as Iraq's deputy minister of oil. U.S. officials accused Al-Bahadly of abusing his government position to help route oil for the benefit of Iran and militia groups operating in Iraq.

Treasury also designated three senior leaders of Iran-aligned militias that Washington considers terrorist organizations.

Treasury said it has been pursuing what it calls "Economic Fury," describing efforts that it says have disrupted projected oil proceeds, contributed to the freezing of regime-linked cryptocurrency, and pressured what it characterized as shadow banking channels. Treasury also warned that foreign firms and financial institutions could face sanctions exposure if they facilitate illicit Iranian commerce, including activity connected to China's independent "teapot" refineries.

This latest move by the Treasury Department coincides with growing scrutiny of oil companies amid rising prices, as Senator Bernie Sanders recently accused them of exploiting the conflict in Iran to "rip off Americans."

U.S. Naval Blockade Cuts Deep Into Iran's Oil Income

The U.S. naval blockade has significantly impacted Iran's oil revenue, with estimates indicating a loss of approximately $4.8 billion since its implementation on April 13. Acting Pentagon press secretary Joel Valdez highlighted the blockade's role in crippling the Iranian regime's capacity to fund terrorism, underscoring the economic ramifications of geopolitical tensions.