Iran’s covert game in Iraq: Oil smuggling, proxy militias, and regional provocations Article by Turkish media

Iranian intelligence is using pro-Iranian militias in Iraq, notably the Hashd al-Shaabi, under the guise of counterterrorism operations around Kirkuk to carry out illegal activities, including oil smuggling and destabilisation efforts, according to a report by the Turkish daily Yeni Şafak.

The report alleges that oil extracted from Iraq’s Mosul and Kirkuk oil fields is being diverted into Iranian hands. This crude oil is then funnelled through the port of Basra and sold on international markets under the false label of Iraqi origin. In doing so, Iran reportedly circumvents international sanctions, particularly those imposed by the United States, and benefits financially by exploiting Iraq’s oil infrastructure and treasury.

According to Yeni Şafak, the Iranian intelligence apparatus is deeply embedded in regions of Sulaymaniyah and Kirkuk, leveraging areas controlled by the Patriotic Union of Kurdistan (PUK) as operational bases. The Islamic Revolutionary Guard Corps (IRGC) is said to be directly involved in activities aimed at undermining Iraq’s sovereignty under the pretence of combating terrorism.

The report further claims that Iranian intelligence services have covertly established ties with the Islamic State (ISIS), allegedly encouraging acts of terrorism in Iraq. This strategy, it says, is aimed at sustaining a climate of insecurity, thereby justifying Iran’s ongoing presence and influence in the country.

Security sources cited in the article state that Iran shifted its strategic focus to Iraq following the collapse of the Assad regime in Syria. Since then, Iran has reportedly worked to create regional instability through the use of irregular Shia militias.

Among the primary actors in this destabilisation campaign is the Asaib Ahl al-Haq (AAH) militia, which split from the Mahdi Army in 2007 and began operating under Iranian direction. Alongside AAH, the Patriotic Union of Kurdistan (PUK) and the Kurdistan Workers' Party (PKK) and its umbrella political structure, the Kurdistan Communities Union (KCK), are said to be cooperating with Iranian intelligence in Kirkuk.

These groups, Yeni Şafak reports, are actively contributing to an atmosphere of insecurity and lawlessness. In particular, they are accused of introducing drugs to Iraqi youth in an effort to degrade societal resilience and create conditions favourable to Iranian influence.

Sources also claim that Iran and IRGC-affiliated elements remain stationed in and around Kirkuk as part of a long-term strategy. In the event of a military confrontation with the United States, Iran allegedly aims to turn Iraqi territory into the battleground, thereby avoiding direct damage to Iranian soil. In this scenario, Iraq’s infrastructure would bear the brunt of the destruction.

The report also highlights that Iran continues to blame Türkiye for the decline in its regional influence following the establishment of a new government in Syria. In response, Iranian intelligence has increased its cooperation with the PKK/KCK and is accused of trying to provoke Ankara by expanding the PKK/KCK presence in Iraq.

This increased militant activity is allegedly aimed at sabotaging any future energy and water cooperation between Iraq and Türkiye. Iran, according to the report, is attempting to push Baghdad and Ankara into confrontation by creating political friction and security instability.

In a broader cultural and ideological campaign, Iranian intelligence is said to be implementing medium- and long-term plans to erode the historical and cultural identity of Iraq’s Turkmen population. Tools reportedly used for this influence operation include the Bedr Örgütü Kuzey Saha, Bedr Örgütü Kerkük Teşkilâtı, as well as the Khomeini Cultural Centre in Kirkuk.

Under the banner of political, cultural, and sporting activities, these organisations are accused of targeting Turkmen youth for recruitment, with the aim of turning them into Iranian agents and expanding Tehran’s ideological reach in Iraq.

By Tamilla Hasanova