The US government on Thursday announced sanctions on the Al-Muhandis company, a firm with links to the Hashed al-Shaabi or the Popular Mobilisation Force (PMF), armed groups trained by Iran during the war against the Islamic State group.
Washington also targeted individuals and other Iraqi militias the US Treasury said had aided Tehran in "evading US sanctions, smuggling weapons, and engaging in widespread corruption in Iraq".
"The Government of Iraq views this unilateral action as deeply regrettable, as it contradicts the spirit of friendship and mutual respect that has long characterised the bilateral relationship between the two countries," Iraqi government spokesman Basim Alawadi said in a statement.
"Taking such a decision without prior consultation or dialogue represents a negative precedent in the approach to relations between allied nations," he added.
The US sanctions targeted Kataeb Hezbollah, a powerful Iraqi armed faction that has been listed as a terrorist organisation by the United States.
Kataeb Hezbollah was integrated into Iraq's regular security forces like other armed groups, but the faction has developed a reputation for sometimes acting on its own.
Other US sanctions announced on Thursday targeted Aqeel Muftin, the president of Iraq's National Olympic Committee, who was accused of managing an Iraqi commercial bank associated with Iran's Islamic Revolutionary Guards' Quds Force.
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