Iraqi Prime Minister Ali al-Zaidi ordered security commanders on Sunday to complete preparations to surround Jurf al-Sakhar district as a confrontation over an oil smuggling investigation intensified. The district, about 60 kilometers southwest of Baghdad in Babylon province, is controlled by armed factions, including the Iranian-backed Kataib Hezbollah militia,
Sources told Al Arabiya/Al Hadath that the instructions included strengthening checkpoints and preparing for a possible order to enter the area. Zaidi also gave the ruling Coordination Framework time to persuade armed factions to withdraw.
The prime minister has set the end of the week as the deadline for Kataib Hezbollah to transfer control of the district, also known as Jurf al-Nasr, to federal forces. He warned that Counter-Terrorism Service units could intervene if negotiations failed.
Kataib Hezbollah rejected the pressure, saying in a statement on Sunday that it would not relinquish the area or its weapons. The militia accused the government of misrepresenting the investigation’s findings and claimed Zaidi had broken an agreement reached during negotiations over its arms.
The dispute escalated after a government committee investigated suspected oil smuggling in the district. Military spokesman Sabah al-Numan said its findings supported information previously gathered by federal intelligence, according to the Iraqi News Agency.
Zaidi dismissed nine officials on Saturday and ordered that suspects be referred to the judiciary. Those removed included officials from provincial security agencies, the Popular Mobilization Forces, the Energy Police and the Oil Pipelines Company.
The separate report, citing government and political sources, said investigators had identified breaches in pipelines and unauthorized refining facilities. It also said armed personnel prevented federal investigators from accessing parts of the area.
Kataib Hezbollah disputed that account. According to its statement, the inspection team found no interference with pipelines. The militia maintained that the facilities consisted of fuel tanks and a small processing plant supplying military vehicles, generators and equipment during fuel shortages.
Sky News Arabia reported that Iraqi intelligence documents it obtained showed tanker movements, suspected storage locations and facilities resembling small refineries. A source speaking to the outlet linked the alleged smuggling to Kataib Hezbollah.
Addressing investigators on Sunday, Zaidi pledged to pursue the case and said the judiciary fully supported their work.
“Not an inch of Iraq will remain subject to oil smuggling and theft, from Zakho to Basra," he said.
Senior figures in the Coordination Framework and the Popular Mobilization Forces are seeking a negotiated withdrawal to prevent fighting, according to the government and political sources.
The confrontation comes amid Zaidi’s broader negotiations to place militia weapons under state authority. Al Arabiya reported that three groups had responded to the initiative, while talks continued with five others, including Kataib Hezbollah. The prime minister has set June 30, 2027, as the deadline for bringing all weapons under government control.