April 21, 2026 | The National Interest
Iran’s War on Iraq’s Oil Industry
Iran-aligned militias in Iraq have been attacking the country’s oil sector while the world’s attention focuses on the Strait of Hormuz.
April 21, 2026 | The National Interest
Iran’s War on Iraq’s Oil Industry
Iran-aligned militias in Iraq have been attacking the country’s oil sector while the world’s attention focuses on the Strait of Hormuz.
Excerpt
Iran sponsors a network of armed groups in Iraq that operate under an Iraqi security institution despite professing loyalty to Iran’s supreme leader. At its core are six US-designated terror organizations that promote the Islamic Republic’s interests and take the lead in confronting the American presence in the country and the region.
These militias have conducted hundreds of attacks in Iraq and against neighboring countries during the war between the United States, Israel, and Iran. Many of these attacks focused on Iraq’s energy sector, the revenue of which accounts for 90 percent of the Iraqi federal budget in their own country.
Even once these attacks stop, it will take years to repair the damage and to reassure investors. A disruption in American and Western investment would be devastating for the Iraqi energy sector, which needs support to develop and modernize. It also means a lost opportunity for American companies and preserving Iraq’s energy dependence on Iran.
Militia drones struck Sarsang, a major field in Iraq’s semi-autonomous Kurdistan region operated by the American company HKN Energy, in early March and again in early April. Due to the security situation, HKN suspended production at Sarsang beginning on March 2 and is investigating damage from the attacks.
Bridget Toomey is a research analyst at the Foundation for Defense of Democracies (FDD), focusing on Iranian proxies, specifically Iraqi militias and the Houthis.