US sanctions Iraq's deputy oil minister, militias over Iran support

WASHINGTON, May 7 (Reuters) - The United States sanctioned on Thursday Iraq's deputy oil minister and militias over support for Iran, the Treasury Department said.

The Treasury Department accused Iraq's minister Ali Maarij Al-Bahadly of abusing "his position to facilitate the diversion of oil to be sold for the benefit of the Iranian regime and its proxy militias in Iraq."

The department is also sanctioning three senior leaders of Iran-aligned militias Kata’ib Sayyid Al-Shuhada and Asa’ib Ahl Al-Haq, it said.

“Treasury will not stand idly by as Iran's military exploits Iraqi oil to fund terrorism against the United States and our partners,” Treasury Secretary Scott Bessent said in a statement.

The sanctions freeze any U.S. assets of those targeted and generally bar Americans from dealing with them.

(Reporting by Daphne Psaledakis and Bhargav Acharya; editing by Michelle Nichols )