(FOX NEWS) — The Trump administration on Thursday announced sanctions targeting Iraq’s deputy oil minister, Iran-aligned militias and businesses accused of diverting Iraqi oil revenues to fund Iranian-backed terrorism.

In a State Department release, spokesperson Tommy Pigott said the move aims to protect Iraq’s sovereignty and disrupt regional financial networks.

“The Trump administration is taking decisive action against individuals and entities that are exploiting Iraq’s oil wealth to fund the Iranian regime’s terrorism in the region,” the statement said.

“These networks undermine Iraq’s sovereignty, rob the Iraqi people of national resources, and fuel violence against both Iraqis and Americans.”

Those sanctioned include Iraq’s deputy minister of oil, Ali Maarij al-Bahadly, “who has abused his government position to divert Iraqi oil in support of the Iranian regime and its terrorist proxies.”

“As part of a scheme to evade sanctions, Iranian oil was fraudulently mixed with Iraqi oil and sold for Iran’s benefit,” the statement said.

The action also targets senior officials from Kata’ib Sayyid Al-Shuhada and Asa’ib Ahl Al-Haq, along with supporting oil-sector companies.

“The United States remains committed to supporting Iraq’s sovereignty and holding accountable those who attack our personnel or exploit Iraqi resources for the Iranian regime’s benefit,” the statement said.