Iraqi PM Launches Probe into Oil Smuggling Operations Linked to Iran-Backed Militia

Iraqi Prime Minister Ali Al Zaidi has initiated an investigation into allegations of petroleum product smuggling from pipelines in an area controlled by Iran-backed militias. The Interior Ministry’s Federal Intelligence and Investigations Agency recently reported illicit activities in Jurf Al Sakhar, a significant agricultural region south of Baghdad, which is currently under the sway of Kataib Hezbollah. In response, Mr. Al Zaidi has established an investigative committee comprising representatives from the Federal Police, Energy Police, General Directorate of Security and Discipline, Federal Intelligence and Investigations Agency, Popular Mobilisation Forces, and Federal Integrity Commission.

The agency's report, supported by satellite imagery spanning from 2021 to 2026, detailed the illegal extraction of oil near pipelines. It identified four specific locations where large tankers, each with a 36,000-liter capacity, were observed making repeated appearances. The report indicated that these sites are under the protection of an unidentified "armed faction" and outlined three potential routes for transporting the smuggled oil products towards Baghdad province. A related report mentioned that Iraqi PM ordered the cancellation of airport contracts due to alleged militia links.

Jurf Al Sakhar, historically a stronghold for Sunni militant groups like Al Qaeda in Iraq following the 2003 US-led invasion, fell under insurgent control in June 2014. Security forces reclaimed the area a few months later, after which it has remained largely inaccessible to outsiders, with many original residents still displaced. The area is widely recognized as a stronghold for Kataib Hezbollah. Images show members of Iraq's Kataib Hezbollah militia holding a picture of Iranian general Qassem Suleimani during his funeral procession in Baghdad on January 4, 2020.

Despite appeals from Sunni politicians, thousands of Sunnis who fled Jurf Al Sakhar during the ISIS occupation have been unable to return. This investigation emerges amidst escalating tensions between Prime Minister Al Zaidi and Iran-backed militias. Since assuming office in May, Mr. Al Zaidi has been working to consolidate state authority over armed factions operating independently of official command structures. An initial plan to bring their weapons under state control by September 30, coinciding with the departure of the US-led anti-ISIS coalition from Iraq, faced significant resistance from influential groups. The deadline has since been postponed to at least June 30, 2027.

Only a few prominent pro-Tehran armed groups, including Asaib Ahl Al Haq and Kataib Imam Ali, along with cleric Moqtada Al Sadr’s Saraya Al Salam faction, have publicly stated their compliance with placing their weapons under state authority. However, hardline factions, primarily Kataib Hezbollah and Harakat Hezbollah Al Nujaba, have declared their refusal to disarm and are openly challenging the government. Concurrently, the Integrity Commission has launched a separate investigation into the smuggling of crude oil from fields in the northern province of Kirkuk and the Kurdistan Region to Iran and Afghanistan via tankers. The practice of tapping into pipelines and smuggling crude and petroleum products has been a persistent issue in Iraq since the 2003 US-led invasion that overthrew dictator Saddam Hussein.