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The Revenue Question

Leaked document alleges a years-long oil smuggling route out of Jurf al-Sakhr

A file passed to Iraqi local media describes commercial and financial operations run by armed factions from the closed town in northern Babil. The government is reported to be examining it; 180,000 of the town’s residents remain displaced after twelve years.

The New Arab reported on 11 November that a document leaked to Iraqi local media alleges large-scale commercial and financial operations run by armed factions from inside Jurf al-Sakhr, including an oil smuggling route from the town to Baghdad sustained over years, and that the government is examining the allegations. The outlet does not establish the document’s provenance, and the Files treats the contents as claimed rather than confirmed. CTP-ISW separately cited a report dated October 2025 and recirculated by regional media on 9 November describing Kataib Hezbollah’s involvement in smuggling at the same location — second-hand, and from a Washington tracker with a declared line on Iran. Wael Hazem, a political activist and member of the Iraqi Civil Movement, told The New Arab that official security forces should be deployed across the district, including its agricultural land, and that its years-long isolation should end.

Jurf al-Sakhr has been closed since 2014. The EU Agency for Asylum assessed in its 2025 Iraq report that the area is controlled by Kataib Hezbollah with fighters from Harakat al-Nujaba and Kataib Sayyid al-Shuhada; the IOM has described it as an inaccessible, predominantly Sunni Arab enclave where no returns have been recorded. Reuters reported airstrikes on PMF positions inside the town in February 2026 that killed two, according to a PMF spokesman, and Counter Terrorism Service units have begun deploying around Jurf al-Sakhr and nearby Jurf al-Naddaf. The town was renamed Al-Nasr City earlier this year, so state paperwork and wire copy now use different names for the same place. Reports circulating on 12 November of a military operation in the area were denied by unnamed Iraqi sources; the Files has not confirmed either the operation or the denial through an Iraqi primary outlet.

Assessment: This is the file that makes the June 2027 deadline legible. Disarmament is usually argued as a weapons-count problem — how many rockets, registered to whom. A route that moves crude to Baghdad for years is an income stream, and a faction with independent revenue has no reason to trade its guns for a budget line. That is the real test of Baghdad’s leverage, and it is why Washington’s financial-pressure argument has more purchase than its security one. Distrust the provenance here: an unsourced leak, recirculated by an advocacy tracker, lands conveniently during a disarmament negotiation. The 180,000 who cannot go home are the verified part.

Iraq FileMEFILES tracking
180,000Residents of Jurf al-Sakhr still displaced after twelve years, per The New Arab
Evidence3 cited sources · The New Arab · criticalthreats.org · Noon Post
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