Death of Iraqi ‘Oil King’ Exposes ‘Jurf al-Sakhar Empire’

A photo released by the Popular Mobilization Forces showing its fighters in the town of Jurf al-Sakhar, south of Baghdad, in 2014
A photo released by the Popular Mobilization Forces showing its fighters in the town of Jurf al-Sakhar, south of Baghdad, in 2014
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Death of Iraqi ‘Oil King’ Exposes ‘Jurf al-Sakhar Empire’

A photo released by the Popular Mobilization Forces showing its fighters in the town of Jurf al-Sakhar, south of Baghdad, in 2014
A photo released by the Popular Mobilization Forces showing its fighters in the town of Jurf al-Sakhar, south of Baghdad, in 2014

A mysterious assassination of a faction leader in Iraq has exposed details of a lucrative oil trade run by what officials and local sources describe as the “Jurf al-Sakhar empire” south of Baghdad, according to information gathered from officials and local residents.

Sources said a “major incident” led to the killing of Abu Saif, believed to be the key figure overseeing the trade in smuggled crude oil, its refining and the sale of its derivatives.

Officials, who requested anonymity because of the sensitivity of the matter, said Abu Saif was likely targeted by a drone strike, coinciding with a broader security escalation in Iraq linked to the war on Iran.

The strike is believed to have been carried out by the United States or Israel, as military aircraft of various types were seen flying intensively over several parts of Iraq throughout the previous week.

Sources said the flights were intended to track groups and individuals already involved in the conflict.

Since Feb. 28, 2026, Iraq’s skies have turned into a crowded theater of drones, attack helicopters and missiles launched by the opposing sides in the regional confrontation: the US and Israel on one side, and Iran and its Iraqi proxies on the other.

Backbone of militia finances

Abu Saif was a shadowy operator who largely worked behind the scenes. Sources said he began as a member of the Mahdi Army, the militia once loyal to Muqtada al-Sadr, before splitting with others and joining factions whose influence has since expanded.

Over the past decade, he has become a central coordinator of specialized operations tied to oil trading, building networks of intermediaries across northern and western Iraqi provinces.

These intermediaries helped obscure his factional ties within what sources describe as Iraq’s “large shadow oil market.”

A person familiar with the parallel oil market described Abu Saif as “one of the nerves of the parallel economy of Iran-aligned groups.”

As the business expanded and the network widened, Abu Saif oversaw refining oil, selling it on the local market, and supplying Iraqi Kurdistan, eventually emerging as one of what sources called Iraq’s “oil kings.”

His network controlled several mobile refineries, known locally as “furnaces,” which produce petroleum derivatives from crude oil siphoned through illegal punctures in major pipelines.

A former oil engineer said these units are small, mobile refining systems designed for quick installation and transport.

They rely on simple distillation equipment that includes heating tanks, small distillation towers, cooling systems and storage tanks that separate gasoline, kerosene, diesel and other products.

Despite their crude design, the operations generate huge profits. But they lack safety and environmental standards, making them vulnerable to explosions and causing severe pollution. The resulting fuel is often low quality and harmful to vehicle engines, the engineer said.

The furnaces also leave behind distinct black stains that damage soil and groundwater, revealing where they have operated.

“Jurf al-Sakhar furnaces”

Security sources said such furnaces spread in areas that experienced security turmoil after 2014, where armed groups and smugglers used them to refine oil extracted from small wells or siphoned from punctured pipelines.

The account is based on remote interviews with security and local sources. Field verification remains difficult because Jurf al-Sakhar has largely been closed to journalists and researchers for years.

The town south of Baghdad became a key hub for these operations because strategic pipelines linking southern oil fields with refineries and stations in central and northern Iraq pass through it.

Jurf al-Sakhar became a major stronghold for Iraqi factions in 2014, when military operations were launched to retake the agricultural town from ISIS fighters. While Shiite factions expelled the militants, around 120,000 civilians were forced to leave.

In the years that followed, the town — once dependent on agriculture — evolved into a complex hub for military and intelligence operations run by armed factions.

According to sources, surrounding farms offered safe cover for mobile refineries, tanker fleets and specialized equipment operated by workers with oil-sector expertise.

Clients of the “oil king”

Sources described a structured network behind Abu Saif’s operations. Products refined in the furnaces were loaded onto tankers that carried no official movement permits and transported to private refineries or facilities with government operating contracts that require petroleum derivatives, such as asphalt plants.

Normally, tanker drivers must carry documents — including official permits — allowing them to pass through checkpoints between Iraqi provinces. But sources said Abu Saif had enough influence to move shipments without interference from security or government authorities.

Dozens of contractors and intermediaries formed what sources described as an army of agents working for the oil king, handling every stage of the process — from operating and relocating furnaces to distributing products to factories and refineries. Many of these intermediaries operate in northern and western Iraqi cities.

The final deal

About a month before his assassination, Abu Saif completed what sources described as his final deal.

They said the network sold about 600,000 tons of oil products, worth roughly $120 million, with nearly half going to the local market.

It remains unclear how the network collects or stores the money. But sources said the deals represent pure profit, since the crude oil is siphoned illegally from pipelines at no cost.

Iraqi authorities periodically announce the dismantling of sites used to recycle and smuggle petroleum derivatives, seizing tankers and illegal refineries across the country.

In some cases, preliminary investigations reveal small networks led by oil traders, operators and complicit security or military officers.

Since 2018, oil smuggling by Iraqi militias has drawn increasing attention from US authorities, prompting Washington to sanction individuals and networks accused of involvement in the factions’ economic activities.

Among them is businessman Salim Ahmed Said, sanctioned by the US Treasury Department in 2025 for running a network of companies that sold Iranian oil as Iraqi oil using front companies and ship-to-ship transfers to conceal the shipments’ origins.

Washington also sanctioned businessman Walid Khaled Hamid al-Samarrai, accused of running a network of tankers and shipping companies used to smuggle Iranian oil and blend it with Iraqi crude before marketing it internationally.

Sources said the oil king exported large quantities of heavy derivatives, particularly black fuel oil, to regional networks that blend them with Iranian oil to facilitate exports using altered shipping documents.

The “Jurf empire”

Sources believe Abu Saif’s assassination during the war on Iran was likely linked to his involvement in military activities targeting US interests from within Jurf al-Sakhar.

Political sources said Shiite armed groups received orders from Iran’s Revolutionary Guards after the killing of Iran’s supreme leader to carry out operations aimed at damaging the US and its allies and targeting the most significant objectives.

Although Abu Saif’s main role involved oil trading and managing the furnaces hidden in Jurf al-Sakhar’s farms, his killing came after his commercial activities intersected with military assignments, which may have included launching explosive drones from the town.

The overlapping roles illustrate how Iraqi factions have built a semi-integrated empire inside Jurf al-Sakhar, combining economic and security functions.

According to sources, the enclave includes missile and drone depots, workshops to test and manufacture improvised explosives, farms, fish lakes, mobile refineries, command and intelligence centers and fortified prisons.

The area also serves as an alternative regional headquarters for units of Hezbollah and advisers from Iran’s Revolutionary Guards, the sources said.

 



Israeli Strikes Damage Hospital in Lebanon

File photo: Destroyed houses that were hit in an Israeli airstrike in Saksakiyeh village, south Lebanon, Friday, April 3, 2026. (AP Photo/Hussein Malla)
File photo: Destroyed houses that were hit in an Israeli airstrike in Saksakiyeh village, south Lebanon, Friday, April 3, 2026. (AP Photo/Hussein Malla)
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Israeli Strikes Damage Hospital in Lebanon

File photo: Destroyed houses that were hit in an Israeli airstrike in Saksakiyeh village, south Lebanon, Friday, April 3, 2026. (AP Photo/Hussein Malla)
File photo: Destroyed houses that were hit in an Israeli airstrike in Saksakiyeh village, south Lebanon, Friday, April 3, 2026. (AP Photo/Hussein Malla)

A hospital in the coastal Lebanese city of Tyre was damaged by Israeli airstrikes on nearby buildings that wounded 11 people, the health ministry said on Saturday.

The director of the Lebanese Italian Hospital told the state-run National News Agency (NNA) that it would "remain open to provide the necessary medical care" despite the damage.

Strikes destroyed two buildings nearby, an AFP correspondent saw, shattering windows and causing suspended ceilings to collapse in the hospital, the facility's management said.

A series of attacks hit the Tyre region on Saturday, including one on its port that struck a small boat and damaged others moored nearby, the AFP correspondent said.

Israel has been carrying out strikes across Lebanon and launched a ground invasion in the south after Hezbollah entered the war in the Middle East on the side of its backer Iran on March 2.

Tens of thousands of people have left Tyre, but around 20,000 remain, including 15,000 displaced from surrounding villages, despite Israeli evacuation warnings covering most of the city and a broad swathe of southern Lebanon.

The NNA also reported that Israeli forces abducted a man in Shebaa, near the Israeli border in the east, at around 3:00 am on Saturday.


Indonesia Slams 'Unacceptable' Peacekeeper Casualties in Lebanon

FILE PHOTO: UNIFIL vehicles drive on a main road in Qlayaa, amid escalating hostilities between Israel and Hezbollah, as the US-Israel conflict with Iran continues, in Qlayaa, southern Lebanon, March 27, 2026. REUTERS/Karamallah Daher/File Photo
FILE PHOTO: UNIFIL vehicles drive on a main road in Qlayaa, amid escalating hostilities between Israel and Hezbollah, as the US-Israel conflict with Iran continues, in Qlayaa, southern Lebanon, March 27, 2026. REUTERS/Karamallah Daher/File Photo
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Indonesia Slams 'Unacceptable' Peacekeeper Casualties in Lebanon

FILE PHOTO: UNIFIL vehicles drive on a main road in Qlayaa, amid escalating hostilities between Israel and Hezbollah, as the US-Israel conflict with Iran continues, in Qlayaa, southern Lebanon, March 27, 2026. REUTERS/Karamallah Daher/File Photo
FILE PHOTO: UNIFIL vehicles drive on a main road in Qlayaa, amid escalating hostilities between Israel and Hezbollah, as the US-Israel conflict with Iran continues, in Qlayaa, southern Lebanon, March 27, 2026. REUTERS/Karamallah Daher/File Photo

The Indonesian government on Saturday slammed as "unacceptable" an explosion that injured three of its peacekeepers in Lebanon within days of three other blue helmets from the Southeast Asian nation being killed.

The United Nations Interim Force in Lebanon (UNIFIL) said three peacekeepers were wounded in a blast that occurred inside a UN facility near Adaisseh on Friday afternoon, and rushed to hospital.

Two were seriously wounded.

The UN Information Center in Jakarta said the "origin of the explosion" was unknown but identified the injured soldiers as Indonesian.

"Repeated attacks or incidents of this kind are unacceptable," the Indonesian foreign ministry said in a statement.

"Regardless of their cause, these events underscore the urgent need to strengthen protection for UN peacekeeping forces amid an increasingly dangerous conflict situation."

The government urged the UN Security Council to investigate the events and "to immediately convene a meeting of troop-contributing countries to UNIFIL to conduct a review and take measures to enhance the protection of personnel serving with UNIFIL".

Friday's incident came just days after an Indonesian peacekeeper died when a projectile exploded on March 29 in southern Lebanon, where Israel and Hezbollah have been fighting since Lebanon was drawn into the Middle East war.

A UN security source told AFP on condition of anonymity Tuesday that fire from an Israeli tank was responsible for that attack.

A day later, two more Indonesian peacekeepers died after an explosion struck a UNIFIL logistics convoy, also in southern Lebanon.

The father of one of the two fallen soldiers, 33-year-old Zulmi Aditya Iskandar, said this week he was shocked that peacekeepers were losing their lives in the conflict.

"We were really sad and regretful, because this is a UN troop, a peacekeeping troop, not deployed for war," 60-year-old Iskandarudin told reporters at his house in West Java province.

The bodies of the three peacekeepers are scheduled to arrive in Jakarta on Saturday evening, according to the military.

The Indonesian National Armed Forces has said it will deploy more than 750 personnel to Lebanon next month as part of the scheduled UNIFIL peacekeeping troop rotation.


Strike Kills One Iraqi Fighter near Syria Border

Mourners attend the funeral of members of Iraq's Hashed al-Shaabi, who were killed in an airstrike in the town of al‑Qaim near the Syrian border, amid heightened regional tensions due to the US-Israel conflict with Iran, in Baghdad, Iraq, March 12, 2026. REUTERS/Stringer
Mourners attend the funeral of members of Iraq's Hashed al-Shaabi, who were killed in an airstrike in the town of al‑Qaim near the Syrian border, amid heightened regional tensions due to the US-Israel conflict with Iran, in Baghdad, Iraq, March 12, 2026. REUTERS/Stringer
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Strike Kills One Iraqi Fighter near Syria Border

Mourners attend the funeral of members of Iraq's Hashed al-Shaabi, who were killed in an airstrike in the town of al‑Qaim near the Syrian border, amid heightened regional tensions due to the US-Israel conflict with Iran, in Baghdad, Iraq, March 12, 2026. REUTERS/Stringer
Mourners attend the funeral of members of Iraq's Hashed al-Shaabi, who were killed in an airstrike in the town of al‑Qaim near the Syrian border, amid heightened regional tensions due to the US-Israel conflict with Iran, in Baghdad, Iraq, March 12, 2026. REUTERS/Stringer

An attack killed one fighter from the former paramilitary coalition Hashed al-Shaabi on Saturday, the alliance said, blaming the US and Israel.

Iraq has been dragged into the war between the United States, Israel and Iran, with strikes targeting both US interests and pro-Iran groups in the country, reported AFP.

"This treacherous attack resulted in the martyrdom of one PMF fighter and the wounding of four others, as well as a member of the ministry of defense," said a short statement from the group, which is also known as the Popular Mobilization Forces (PMF), adding it was a "Zionist-American attack".

The PMF is a coalition of armed groups -- formed in 2014 to fight extremists-- that is now part of Iraq's regular army, but also contains pro-Iran factions who have a reputation for acting independently.

PMF positions have been repeatedly targeted since the outbreak of war, with the group consistently blaming the attacks on the US and Israel.

According to the group's statement, the latest attack targeted a position in western Anbar province of the 45th Brigade, which belongs to the US-blacklisted, pro-Iran Kataeb Hezbollah group.

Kataeb Hezbollah is part of the umbrella movement known as the Islamic Resistance in Iraq, which has been claiming daily attacks since the start of the war on US interests in Iraq and the region.

The Pentagon has said helicopters have carried out strikes against pro-Iran armed groups in Iraq during the war.

Washington has strongly denied claims it has targeted Iraqi security forces.