As ISIS continues to make gains in Iraq and Syria despite continuing bombing raids by a growing U.S.-led military coalition, the Islamic militant group appears to be financing its terror campaign with profits from the sale of smuggled oil.
The most interesting aspect of this fundraising tactic is that the oil is being purchased by supposed proclaimed enemies of ISIS.
The surprising list of oil buyers includes Turkey – which has dragged its feet in its enthusiasm to join the coalition against ISIS – but this week passed a military resolution to fight the group as the conflict in Syria spills over its borders. Also reportedly on the list of ISIS oil customers are Iran, Kurdistan, and Syria - all nations that in some way, shape or form are opposing the Islamic jihadist group.
According to the Iraq Energy Institute, ISIS is producing about 30,000 barrels of oil per day in Iraq, and 50,000 daily in Syria. The terrorist group smuggles the oil and then trades it for cash and refined products, at a special price.
The Iraq Energy Institute estimates that ISIS sells the commodity at a black market price of about $40 a barrel, meaning it can earn up to $1.2 million a day in Iraq and $2 million in Syria alone.
The discussion focuses on what measures, if any, can be done to stop the lucrative oil profits to ISIS. But it’s unclear whether predicted pressure of sanctions from the United States and other countries will have any impact, since the process is essentially “off the grid” black market smuggling.
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