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.

 



Israel Tests Nabatieh Defenses, Seeks to Isolate the City in South Lebanon

Smoke rises from Beaufort Castle following strikes, as seen from Marjayoun, southern Lebanon, May 27, 2026. REUTERS/Stringer
Smoke rises from Beaufort Castle following strikes, as seen from Marjayoun, southern Lebanon, May 27, 2026. REUTERS/Stringer
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Israel Tests Nabatieh Defenses, Seeks to Isolate the City in South Lebanon

Smoke rises from Beaufort Castle following strikes, as seen from Marjayoun, southern Lebanon, May 27, 2026. REUTERS/Stringer
Smoke rises from Beaufort Castle following strikes, as seen from Marjayoun, southern Lebanon, May 27, 2026. REUTERS/Stringer

The Israeli army made on Wednesday further incursions around the southern Lebanese city of Nabatieh beyond the Israeli-declared "yellow line” while increasing airstrikes up to 20 kilometers from the border and forcing the full evacuation of towns around the city.

The advance followed Israeli threats to expand beyond the yellow line and coincided with what Israel’s Channel 14 described as the widespread, systematic destruction of more than 10,000 buildings in southern Lebanese border villages, about 70% of the structures Israel plans to demolish in the area.

“We are expanding our operations in Lebanon to deepen the scale of the damage we are inflicting on Hezbollah,” Israeli army Chief of Staff Eyal Zamir said on Wednesday.

Hayat Al-Aqleh embraces her 18-month-old son Ali at Jabal Amel Hospital in the southern port city of Tyre, Lebanon, Wednesday, May 27, 2026, after he underwent head surgery for injuries sustained in an Israeli airstrike a day earlier in the village of Charnay near Tyre. (AP Photo/Mohammad Zaatari)

New push north of the river

Israeli forces entered eastern Zawtar, a town on the northern bank of the Litani, advancing on its outskirts as they sought to reach the strategic Beaufort Castle east of Nabatieh.

The castle overlooks, from the east, Lebanese towns under Israeli occupation, as well as northern Israeli settlements less than 10 kilometers away. Israel has placed the castle and the towns of Zawtar, Arnoun and Yohmor al-Shaqif within the yellow line, although they lie north of the Litani.

Local sources in southern Lebanon told Asharq Al-Awsat that Israeli forces sent unmanned vehicles deep into an area near Mayfadoun to probe defenses and reconnaissance capabilities.

They said the move pointed to attempts to push toward the hills south of Nabatieh, especially Mayfadoun and Shawkin, to isolate the city, which was placed under a full evacuation warning on Wednesday for a second day in a row.

The sources said airstrikes intensified on Beaufort Castle and nearby Yohmor, Kfar Tebnit and Arnoun, areas overlooking Nabatieh from the east.

The Israeli army gave no details on the fighting.

In a statement sent in response to a question from Agence France Presse and attributed to a military official, the army said it was operating in a targeted manner beyond the forward defense line to eliminate direct threats to the citizens of the State of Israel and to soldiers ... in accordance with directives from the political leadership.

Specific details regarding the locations of soldiers cannot be provided, the official said.

Clashes at point-blank range

In a statement Wednesday, Hezbollah said its fighters "clashed with the enemy forces at point-blank range" with light and medium weapons in the town of Zawtar al-Sharqiyah.

Since dawn on Tuesday, Hezbollah had said it targeted Israeli forces trying to enter the town with rocket-propelled grenades and explosive drones. It later said its fighters fired rockets and drones at Israeli forces on the town’s outskirts and near its entrance by the riverbed.

Al-Manar, Hezbollah’s television channel, said Israeli forces were moving along three axes on the outskirts of Zawtar al-Sharqiyah from the Hamra side. It said clashes were underway at three points, but denied that Israeli forces had advanced toward Mayfadoun or the inner neighborhoods of Zawtar al-Sharqiyah.

The town’s position north of the Litani gives it strategic significance due to its proximity to Nabatieh, southern Lebanon’s largest city. Israel accuses Hezbollah of violating the ceasefire.

Zawtar al-Sharqiyah lies next to the yellow line that the Israeli army drew last month in southern Lebanon. The line runs around 10 kilometers deep inside Lebanese territory and where residents have been warned not to return.

The advance into the town coincided with an Israeli army statement on Tuesday saying it was “operating in a targeted manner beyond the forward defense line to eliminate direct threats to the citizens of the State of Israel and to soldiers.”

Emptying Nabatieh’s surroundings

As it tries to advance, Israel is also working to isolate Nabatieh and its surroundings by expanding the fire-enforced buffer zone to nearly 20 kilometers from the border.

Field sources in southern Lebanon told Asharq Al-Awsat that the line of fire had been cleared to Doueir, where no one can now enter, including ambulances, which need permission from the so-called mechanism - an internationally brokered monitoring committee established to oversee the ceasefire - to access the town.

Civil defense members search for victims in the rubble of a residential building hit the previous day by an Israeli strike near the southern town of Burj al-Shamali, on the outskirts of Tyre, on May 27, 2026.(Photo by KAWNAT HAJU / AFP)

The sources said the evacuation sweep covered Doueir, Harouf, Jebchit, Zebdine, Toul, Kfar Jouz, Deir al-Zahrani, Habboush, Kfar Roummane, Mayfadoun and Shawkin. It also included towns north of the river, southwest of Nabatieh, overlooking the Litani’s bank.

The developments came hours after evacuation warnings on Tuesday covered about 50 Lebanese villages and towns, including all towns in the districts of Bint Jbeil, Marjayoun and Tyre, as well as a large part of the Nabatieh district.

The Israeli army carried out about 150 airstrikes on Tuesday, killing 31 people and wounding 40, according to Lebanon’s Health Ministry. The ministry said 14 people were killed in Burj al-Shamali near Tyre.

On Wednesday, the bombing expanded into the Zahrani district, hitting Tafahta, as well as large parts of villages around Nabatieh. Lebanon’s official National News Agency said a strike near Nabih Berri Governmental Hospital caused “major damage to hospital wards.”


Gaza Marks Third Eid Asking: What Joy Remains?

Palestinians wait to receive donated food at a distribution center in Khan Younis, Gaza Strip, Wednesday, May 27, 2026. (AP Photo/Abdel Kareem Hana)
Palestinians wait to receive donated food at a distribution center in Khan Younis, Gaza Strip, Wednesday, May 27, 2026. (AP Photo/Abdel Kareem Hana)
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Gaza Marks Third Eid Asking: What Joy Remains?

Palestinians wait to receive donated food at a distribution center in Khan Younis, Gaza Strip, Wednesday, May 27, 2026. (AP Photo/Abdel Kareem Hana)
Palestinians wait to receive donated food at a distribution center in Khan Younis, Gaza Strip, Wednesday, May 27, 2026. (AP Photo/Abdel Kareem Hana)

For the third year in a row, Gaza residents marked Eid al-Adha with the same bitter question, “In what state have you returned, Eid?”

Joy was again absent from the Gaza Strip, replaced by fear over the security situation, assassinations, and Israeli escalation, as fighter jets flew heavily overhead and carried out strikes.

That mood shaped the first day of Eid al-Adha on Wednesday. Residents moved cautiously, and family visits were limited by fears of renewed Israeli bombardment, which had intensified on Tuesday, the Day of Arafat, killing more than 15 Palestinians.

The latest developments overshadowed the third consecutive Eid to pass under harsh conditions in Gaza, amid war and continued escalation following the ceasefire that took effect on Oct. 10, 2025.

Remote greetings

Nabil Tareq, 41, a Gaza resident from the Jabalia refugee camp in the north, who is displaced west of Gaza City, settled for calling his sister and cousins to greet them on Eid al-Adha.

He had decided not to travel to the central Gaza Strip because of the security situation and the sudden Israeli strikes Gaza has seen in recent days.

Internally displaced Palestinian women attend Eid al-Adha prayer in Gaza City, 27 May 2026. EPA/MOHAMMED SABER

Tareq told Asharq Al-Awsat that he only visited his brothers and relatives in western Gaza. The visit was brief, he said, so he could return to the tent where he is displaced and remain with his family, fearing for his life and theirs.

He said the security situation and the transport crisis kept him from visiting relatives in more distant areas.

Trying to adapt

Sama Hamdan, 23, from Gaza City and displaced to Nuseirat camp in the central Gaza Strip, traveled to her hometown in a rundown vehicle to see her uncles and greet them for Eid.

She was accompanied by her young brothers, who had been longing to play with their cousins.

Displaced Palestinian children play on a swing at a tent camp during the Muslim holiday of Eid al-Adha in Khan Younis, southern Gaza Strip, Wednesday, May 27, 2026. (AP Photo/Abdel Kareem Hana)

Hamdan said she made the trip to ease the burden on her uncles, especially the elderly, amid Gaza’s harsh conditions, particularly the shortage of transport and high fares.

“Our lives have changed since the war, and no longer have meaning. All the conditions are discouraging and impose a state of despair on us, but we are trying to adapt to the new reality as much as possible despite the ongoing war by the occupation, which has not stopped bombing and destroying despite claims that there is a truce in Gaza,” Hamdan said.

An ongoing war

In a vehicle carrying several Gazans from the Rimal neighborhood to Sheikh Radwan in northern Gaza City, residents spoke of Israeli bombardment, the targeting of homes and the return of assassinations.

Saed Abu Safiya, 23, who started the conversation in the vehicle where Asharq Al-Awsat’s correspondent was present, said Israel would not halt its raids until Palestinian factions surrendered their weapons.

Salman Abu Khuwayter, a Gaza resident from Jabalia who is displaced in Sheikh Radwan, disagreed. He said the war would not stop even if Hamas and the factions handed over their weapons.

He said Israeli Prime Minister Benjamin Netanyahu and Israel aimed to displace Gaza’s population, pressure the factions and strip them not only of their weapons, but also eliminate all their members or move them out of the enclave.

Funerals on Eid

As family visits remained limited across Gaza, Palestinian families buried relatives killed in a series of strikes on Tuesday.

People carry bodies identified by mourners as Hamas' military wing commander Mohammad Odeh, who was killed in an Israeli strike on Tuesday, and his wife and children, during a funeral, in Gaza City, May 27, 2026. REUTERS/Mahmoud Issa

About 15 people were killed, including Mohammad Odeh, a commander in the Qassam Brigades, the armed wing of Hamas, his wife and three members of his family.

Grief marked the funerals held across southern, central and northern Gaza. Crowds joined processions that set out from different hospitals across the enclave.

At Odeh’s funeral, mourners chanted angry slogans demanding revenge for him and for all those killed in the escalating Israeli attacks on Gaza.

The number of Palestinian victims since the ceasefire has risen to more than 910.

The first day of Eid al-Adha was not quiet. Drones, warplanes, and helicopters kept flying over different parts of the enclave.

Explosions were heard in Khan Younis in southern Gaza and were later found to have been caused by mock raids off the city’s coast.

Shortly before Wednesday afternoon, a drone struck three Palestinians, wounding them. One injury was described as serious.


UN Raises Alarm over Israel's Killings of Gazans Near Armistice Line

People carry bodies identified by mourners as Hamas' military wing commander Mohammad Odeh, who was killed in an Israeli strike on Tuesday, and his wife and children, during a funeral, in Gaza City, May 27, 2026. REUTERS/Mahmoud Issa
People carry bodies identified by mourners as Hamas' military wing commander Mohammad Odeh, who was killed in an Israeli strike on Tuesday, and his wife and children, during a funeral, in Gaza City, May 27, 2026. REUTERS/Mahmoud Issa
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UN Raises Alarm over Israel's Killings of Gazans Near Armistice Line

People carry bodies identified by mourners as Hamas' military wing commander Mohammad Odeh, who was killed in an Israeli strike on Tuesday, and his wife and children, during a funeral, in Gaza City, May 27, 2026. REUTERS/Mahmoud Issa
People carry bodies identified by mourners as Hamas' military wing commander Mohammad Odeh, who was killed in an Israeli strike on Tuesday, and his wife and children, during a funeral, in Gaza City, May 27, 2026. REUTERS/Mahmoud Issa

About a third of Palestinians killed by Israel since an October truce were in areas near the military's armistice line with Hamas, raising concerns that troops may be shooting at civilians merely for approaching the area, the UN human rights office said.

The office said such actions would constitute unlawful killings and thus war crimes. Israel's military, which says fire by its troops near the armistice line aims to thwart militant threats, did not immediately provide comment on the allegations.

Israel has demarcated its armistice boundary with Hamas since the truce with a "yellow line" marked on the ground with spaced out concrete blocks. Israeli troops remain deployed to its east, with Hamas in control in a coastal strip of land. But the military has frequently shifted those blocks deeper into Hamas-controlled territory, and Israeli maps show a widened restricted zone of military control now covers nearly two-thirds of Gaza. Israel's expanding zone of control has stirred fears among displaced Palestinians living in tent encampments and bombed out homes near the yellow line that they may be deemed military targets, as the population is squeezed into an even smaller area.

UN SAYS KILLINGS MAY BE UNLAWFUL

The UN data, shared exclusively with Reuters, includes 453 verified killings since the ceasefire through to February 5. Of those, 152 Palestinians - comprising 102 men, 15 women, 24 boys and 11 girls - were near the boundary, it said. "The available information raises serious concerns that the Israeli army is shooting at and killing presumed civilians simply on the basis of their proximity to the so-called yellow line, which would amount to unlawful killings and thus war crimes," said Ajith Sunghay, head of the UN Human Rights Office in the occupied Palestinian territory, calling the pattern alarming.

"Civilians do not appear to have posed any risk to the life of the Israeli military, including some cases in which they appear to have been shot while carrying out daily activities or having approached or crossed Israel's so-called yellow line," he said.

The boundary location was often not clear to Palestinians, he added. "Nobody clearly knows exactly where it starts, where it ends, and how it moves, and when it moves." Israeli officials describe the territory they've seized in Gaza, Syria and Lebanon as "buffer zones" that can stave off potential militant attacks following the October 7, 2023 Hamas-led assault that set off the Gaza war. The ceasefire brokered by US President Donald Trump has failed to halt Israeli attacks in Gaza, and Israel has continued to target Hamas leaders, killing two in the past two weeks. Overall, some 900 Palestinians have been killed in Israeli strikes since the truce, Gaza health authorities say, without giving a breakdown by location.