Trump puts Iraq at a crossroads: join the West or face sanctions
A US report reveals President Donald Trump’s persistent efforts to draw Iraq toward the Western axis, stressing that the US Treasury’s recent sanctions on Iraqi oil networks involved in smuggling for Iran are likely to hinder international investment in the oil and gas sector and ports planned by Baghdad.
A report by the American oil website Oil Price, translated by Shafaq News Agency, stated that “the Trump administration has escalated its pressure on the Iranian regime, just weeks after the attack on Tehran’s nuclear facilities, and has tightened the “maximum pressure” sanctions imposed by Trump, as Washington announced new designations that included more than 30 tankers, entities, and individuals.”
The report pointed out that the US Office of Foreign Assets Control (OFAC) stated on Thursday that the targeted networks transport billions of dollars worth of Iranian oil and include designations of companies linked to British and Iraqi citizen Salim Ahmed Saeed, who is accused of selling Iranian oil falsely declared as Iraqi oil since at least 2020. The designations also address Iraq-based operations that blend Iranian oil with Iraqi oil and sell it as Iraqi or Emirati oil.
According to the report, “One target is the VS Oil Terminal in the Iraqi port of Khor al-Zubair, owned by Saeed and housing six oil tanks. OFAC has also observed ship-to-ship transfers occurring near this terminal. Lloyd’s List has previously reported that forged documents and manipulated data are routinely used to disguise Iranian oil. Other designations include the UAE-based VS Tankers FZE, the Marshall Islands-flagged supertanker Tigris, and 11 other tankers used in Iranian oil and liquefied natural gas (LNG) shipments.”
He explained that “some of the vessels were involved in sales operations for the Islamic Revolutionary Guard Corps-Quds Force. The designations also included Sai Saburi Consulting Services, an India-based ship management company (linked to the sanctioned Pakistani trading company Alliance Energy), and the Singaporean company Trans Arctic Global Marine Services.”
The report continued: “For Iraq, the implications are significant. While Baghdad seeks to boost investment and cooperation with the West, US sanctions targeting Iraqi-linked operators could hinder international investment in the oil, gas, and ports sectors. Baghdad also needs more natural gas, and the broader US-Israeli conflict with Iran, along with Washington’s efforts to limit Iranian influence in Iraq, are increasing political and economic instability.”
He pointed out that “Iran’s grip on Iraq has weakened recently, but the militias remain active, and Baghdad is also embroiled in a dispute with the Kurdistan Regional Government over oil contracts and revenue sharing.” He noted that “Washington’s involvement in the dynamics of Iranian-Iraqi relations has begun to deepen, and that Trump’s strategy is based on two axes: pressuring Tehran to negotiate, drawing Iraq into the Western orbit, and confronting the growing regional role of China and Russia.”
Shafaq.com