$1 Billion Smuggling Empire
How Iran and Iraq’s Militias Profit from Subsidized Fuel Oil
$1 Billion Smuggling Empire
A billion-dollar fuel oil smuggling network has thrived in Iraq since Prime Minister Mohammed Shia al-Sudani took office in 2022, funneling profits to Iran and its allies.
Exploiting Iraq’s subsidized fuel policy, the scheme diverts 500,000 to 750,000 metric tons of heavy fuel oil monthly, with much of it exported to Asia.
Key players include Iranian-backed militias like Asaib Ahl al-Haq (AAH) and Kataib Hezbollah, using fake asphalt plants and forged documents to mask the fuel’s origins.
Some oil is blended with Iranian supplies to dodge U.S. sanctions, while other shipments are disguised as legitimate exports. $1 Billion Smuggling Empire
Iraq’s economy, already strained by corruption and foreign influence, faces growing scrutiny from the U.S., with potential sanctions looming.
Despite recent government reviews and price hikes, the smuggling persists, underscoring Tehran’s deep influence and Baghdad’s reliance on militia support to maintain power.
