Iraq’s prime minister sacked nine officials over oil smuggling in a town held by an Iran-backed militia
Iraqi Prime Minister Ali al-Zaidi has dismissed nine security, intelligence and oil officials and referred everyone accused to the courts, after an inquiry into oil smuggling around Jurf al-Sakhar, a town south of Baghdad held by the Iran-backed militia Kataib Hezbollah. The network has been put at up to US$30 million a month. It is the most direct move yet by Zaidi against the armed factions he has promised to disarm.
Live updates
- 11.45am AWST SunLatest
No names of the dismissed officials or the accused have been released, and Kataib Hezbollah has made no public response.
- Saturday evening, Iraqi time
Zaidi dismisses nine security, intelligence and oil officials over the Jurf al-Sakhar smuggling inquiry and orders all accused referred to the judiciary.
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Three things to know
- Those sacked on Saturday include security and intelligence officers in Babylon province, an Interior Ministry commander and the director of the state Oil Pipelines Company.
- A military spokesman, Sabah al-Numan, said Zaidi ordered that all those accused of involvement be referred to the judiciary. None has been named.
- The inquiry was ordered only last week, after a confidential report said large tankers had repeatedly visited sites near oil pipelines in the area between 2021 and 2026.
Iraq’s prime minister has sacked nine officials whose job was, in part, to stop oil leaving the state’s pipelines, after an investigation found it was being smuggled out through a town controlled by one of the country’s most powerful militias.
Ali al-Zaidi dismissed the officials on Saturday 14 November, Iraqi time. They include security and intelligence officers in Babylon province, a commander from the Interior Ministry and the director of the Oil Pipelines Company at the Oil Ministry. Military spokesman Sabah al-Numan said Zaidi ordered that “all individuals accused of involvement” be sent to the judiciary. The suspects have not been named.
The alleged network around Jurf al-Sakhar has been estimated to be worth up to US$30 million a month.
Why does this town matter?
Jurf al-Sakhar, south of Baghdad in Babylon province, has been held by Kataib Hezbollah since Iraqi forces and militias retook it from Islamic State in 2014. Its residents were not allowed to return. Kataib Hezbollah is backed by Iran and is listed as a terrorist organisation by the United States.
That is what makes Saturday’s sackings unusual. Baghdad has not moved into the town. It has instead removed the people on its own payroll who were meant to be watching it.
What did the inquiry find?
The investigation was ordered last week after a confidential technical report described large tankers repeatedly visiting sites near oil pipelines in the area over five years, from 2021 to 2026. The report recommended legal action against negligent officials at two state oil companies. It did not settle whether the tankers carried crude oil or refined products, and it referred only to “an armed faction” rather than naming Kataib Hezbollah.
Not everyone accepts the findings. Babylon’s governor, Ali Turki al-Jamali, has denied the smuggling reports, saying no oil pipeline runs through the area. Parliament’s Speaker has ordered a temporary parliamentary committee to look into the claims.
Why now?
Zaidi has vowed to make Iraq’s armed factions hand their weapons to the state, and his relations with Kataib Hezbollah have been strained since. The timing is sharp: with the US-Israeli war on Iran running since February, Iran-backed groups in Iraq have been in the firing line, and a US air strike in Basra province in April killed a Kataib Hezbollah fighter.
Oil pays for almost everything in Iraq’s budget. Every barrel diverted from the pipelines is revenue that never reaches the state that is trying to rein the militias in.
What does it mean beyond Iraq?
Iraq is one of the world’s biggest oil exporters. Smuggling on this scale does not move global prices on its own, but it is a test of whether Baghdad can control its own oil at a time when Gulf supplies through the Strait of Hormuz are under threat. For markets, including Australian fuel buyers, a stable Iraqi supply matters more than it did a year ago.
VNN will update this story as more is confirmed.
How we got here
The key moments that brought this story into focus. Open any moment for detail.
2014Town retaken
Iraqi forces and militias retake Jurf al-Sakhar from Islamic State; Kataib Hezbollah keeps control and residents are not allowed back.
2021-2026Tanker visits
A confidential report later describes large tankers repeatedly visiting sites near pipelines in the area.
April 2026Basra strike
A US air strike in Basra province kills a Kataib Hezbollah fighter.
November 2026Inquiry ordered
The prime minister's office orders an investigation into the smuggling claims; parliament forms a temporary committee.
14 November 2026Nine sacked
Zaidi dismisses nine officials and refers the accused to the courts.
What happens next
Watch for the names of those referred to the judiciary, the findings of the parliamentary committee, and any response from Kataib Hezbollah, which has not commented publicly. Whether Baghdad tries to send its own forces into Jurf al-Sakhar would be the real test of Zaidi's promise to bring the factions' weapons under state control.
Sources
- VNN
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