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.

 



Some South Lebanon Residents Trickle Back as Israel-Hezbollah Fighting Pauses

A man walks past a destroyed building targeted by Israeli air strikes on the historic old market in the town of Nabatieh, southern Lebanon, 21 June 2026, following the ceasefire between Israel and Hezbollah. (EPA)
A man walks past a destroyed building targeted by Israeli air strikes on the historic old market in the town of Nabatieh, southern Lebanon, 21 June 2026, following the ceasefire between Israel and Hezbollah. (EPA)
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Some South Lebanon Residents Trickle Back as Israel-Hezbollah Fighting Pauses

A man walks past a destroyed building targeted by Israeli air strikes on the historic old market in the town of Nabatieh, southern Lebanon, 21 June 2026, following the ceasefire between Israel and Hezbollah. (EPA)
A man walks past a destroyed building targeted by Israeli air strikes on the historic old market in the town of Nabatieh, southern Lebanon, 21 June 2026, following the ceasefire between Israel and Hezbollah. (EPA)

Some south Lebanon residents cautiously headed back to their hometowns on Sunday after fighting paused between Israel and Hezbollah the previous evening, even as Lebanon's army warned locals to delay returns.

In the southern city of Nabatieh, AFP correspondents saw just a few residents trickling back to inspect homes and businesses.

Mohammad Salloum said he had come back briefly to check on his shop but would return to the city of Sidon further north where he has taken refuge.

"Nabatieh is disaster-stricken," he told AFP while inspecting the damage.

But "God willing, the city will return to life within two or three months", he added.

Lebanon's army on Sunday emphasized "the need for residents to delay their return to southern border villages and towns" and to comply with army instructions "to preserve their safety from the danger of Israeli violations and attacks".

In the southern Tyre region, an AFP correspondent reported a cautious return of some residents, but said many were waiting for the outcome of further Middle East war talks on Sunday and the green light from local authorities.

Hezbollah's backer Iran, which is holding talks in Switzerland with the United States on Sunday, had warned it would not enter into negotiations on a broader agreement with Washington unless the war in Lebanon came to an end.

The latest Israel-Hezbollah ceasefire was announced on Friday, but Lebanese authorities said Israeli strikes on the country's south and east on Saturday killed at least 30 people before fighting paused in the evening.

Israel's Defense Minister Israel Katz on Sunday said Israeli forces had standing orders to act against any threat inside Lebanon, insisting troops would remain in a so-called security zone inside Lebanese territory.

Israeli military operations have recently been focused on the Nabatieh region, and Lebanon's central bank on Saturday said an Israeli strike targeted its branch in the city.

Mayor Abbas Badreddine told AFP that "the scope of destruction in the city of Nabatieh in the past 48 hours amounts to about half of what happened" during the rest of the war.

Lebanon says Israeli attacks have killed more than 4,000 people since Hezbollah drew the country into the Middle East conflict on March 2 with rocket fire at Israel in support of Tehran.


Israel PM Says Troops to Stay in South Lebanon ‘as Long as Necessary’

 An Israeli military vehicle moves past destroyed buildings in southern Lebanon as seen from northern Israel, Sunday, June 21, 2026. (AP)
An Israeli military vehicle moves past destroyed buildings in southern Lebanon as seen from northern Israel, Sunday, June 21, 2026. (AP)
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Israel PM Says Troops to Stay in South Lebanon ‘as Long as Necessary’

 An Israeli military vehicle moves past destroyed buildings in southern Lebanon as seen from northern Israel, Sunday, June 21, 2026. (AP)
An Israeli military vehicle moves past destroyed buildings in southern Lebanon as seen from northern Israel, Sunday, June 21, 2026. (AP)

Israeli Prime Minister Benjamin Netanyahu said on Sunday that Israeli forces would remain in occupied regions of southern Lebanon "as long as necessary", while also vowing to prevent Iran from acquiring nuclear weapons. 

"We will remain in the security zone in southern Lebanon for as long as necessary to protect the cherished residents of the north and all the citizens of Israel... Nothing will alter that commitment," Netanyahu said. 

"And with regard to Iran: whatever political developments may unfold, I will not allow Iran to acquire nuclear weapons. As long as I serve as prime minister of Israel, that will not happen." 

Israel's military chief said on Sunday that Hezbollah had suffered a severe blow fighting Israeli forces and was now in a "very difficult position", as he met with troops in southern Lebanon. 

He spoke as the United States and Iran held talks in Switzerland after signing a preliminary agreement to end the broader Middle East war, with the conflict in Lebanon threatening to derail the deal. 

"Hezbollah has suffered a severe and significant blow, and we are committed to remaining prepared to continue operating and prevent its rebuilding," Lieutenant General Eyal Zamir said, according to a military statement. 

"Hezbollah is in a very difficult position," he added. 

Hezbollah had pulled Lebanon into the Middle East war in early March when the Iran-backed Lebanese group fired rockets at Israel in retaliation for the killing of Iran's supreme leader in US-Israeli strikes. 

Despite a new ceasefire announcement on Friday as part of the memorandum of understanding signed by Tehran and Washington, Israel and Hezbollah had continued to clash. 

However, there were no reports of fresh strikes in Lebanon since Saturday evening. 

Zamir vowed to defend the communities of northern Israel from Hezbollah rockets. 

"This is the purpose guiding all our efforts... The ceasefire that has been declared is fragile, and we must maintain a high level of readiness for the renewal of combat operations," Zamir said. 

- Qassem - 

Hezbollah chief Naim Qassem on Sunday rejected any Israeli security zone in Lebanon. 

Israeli troops "remaining on Lebanese land is impossible. There are no security zones for Israel... we have a national army which deploys, and it is responsible for preserving sovereignty, and it is who we cooperate with," Qassem said in a televised address. 

"Israel is an aggressor and must leave. America bears full responsibility," he said, adding that "Israel will not remain in Lebanon, even if it increases its crimes, and we will defend ourselves." 

Qassem's address came as Washington and Tehran held talks in Switzerland after this week signing a preliminary agreement to end the broader Middle East war, which includes a halt to the hostilities in Lebanon. 

Ongoing Israeli strikes in recent days have threatened to derail the deal, but fighting in Lebanon has paused since Saturday evening, after Iran again closed the strategic Strait of Hormuz in response to Israel's attacks on Lebanon. 

"Any ceasefire under the banner of a comprehensive cessation of hostilities -- we have already committed to this if it happens, but we will not accept any violation. We will confront any violation... we will deal with it as we see fit," Qassem said. 

He urged Lebanese authorities to "take advantage of the path of the memorandum of understanding." 

"Look at the great Iran, closing the Strait of Hormuz for the sake of Lebanon. This is a weapon in your hands," he said, addressing the Lebanese authorities, adding, "Take up this weapon and use it." 

Under US pressure, Lebanon in April began direct talks with Israel in Washington aimed at ending the hostilities and separating the Israel-Hezbollah conflict.

Hezbollah has firmly rejected the direct talks, a fifth round of which is due to begin next week. 

Earlier on Sunday, Defense Minister Israel Katz said Israeli forces had standing orders to act against any threat inside Lebanon and insisted they would remain in the so-called security zone established within occupied Lebanese territory. 

"There has never been, and there is currently no restriction on Israeli soldiers in Lebanon from acting to eliminate threats... As Prime Minister Benjamin Netanyahu and I have made clear: Israel will not withdraw from the security zone in Lebanon," Israel Katz said in a statement, referring to an area extending roughly 10 kilometers (six miles) into Lebanese territory that Israel is occupying. 

Israeli forces and Hezbollah fighters engaged in fierce clashes this week, with Lebanese officials reporting dozens of people killed and the Israeli military reporting five of its own soldiers dead. 


Iran Says Lebanon Conflict 'Main Topic' in US Talks

Smoke billows from southern Lebanon following an Israeli strike, as seen from Nabatieh, Lebanon, June 20, 2026. REUTERS/Stringer
Smoke billows from southern Lebanon following an Israeli strike, as seen from Nabatieh, Lebanon, June 20, 2026. REUTERS/Stringer
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Iran Says Lebanon Conflict 'Main Topic' in US Talks

Smoke billows from southern Lebanon following an Israeli strike, as seen from Nabatieh, Lebanon, June 20, 2026. REUTERS/Stringer
Smoke billows from southern Lebanon following an Israeli strike, as seen from Nabatieh, Lebanon, June 20, 2026. REUTERS/Stringer

Iran said on Sunday that the ongoing conflict in Lebanon between Israel and militant group Hezbollah will top the agenda in talks with the United States in Switzerland, as well as issues such as frozen Iranian funds and the sale of the country's oil.

"The Zionist regime continues to violate its commitment in Lebanon, this issue will be the main topic of discussion in today's talks," foreign ministry spokesman Esmaeil Baqaei said in a video shared by IRNA state news agency.

Tehran said on Thursday it had signed a deal with Washington to end months of hostilities that began on February 28 following US-Israeli attacks on Iran.

Under the agreement, the Israel-Hezbollah conflict in Lebanon was also due to stop, said AFP.

Iran's military announced on Saturday that it has closed the Strait of Hormuz again over ongoing Israeli attacks in Lebanon.

But there were no reports of fresh strikes in Lebanon after Saturday evening and Baqaei said since Saturday "a fragile cessation (in Lebanon) has been established".

He added that Tehran would also pursue the issue of its frozen and inaccessible funds during the talks.

"The issue of making available Iran's frozen or restricted assets, as well as the discussion related to issuing the necessary licenses for the sale of Iranian oil, will also be on the agenda," he said from Switzerland.

Iran has not officially disclosed the value of its frozen assets, though media reports have estimated them at more than $100 billion, largely frozen since the 1979 Iranian Revolution that toppled the US-backed shah.

According to Baqaei, the Iranian delegation will meet the US delegation in a "quadrilateral meeting" that will also include mediators Pakistan and Qatar.