A new, general oxidative route to transformations of 1,3‐dicarbonyl compounds to 1,2‐dicarbonyl compounds by merging copper and I2 catalysis is described. This method is applicable to broad 1,3‐dicarbonyl compounds, including 1,3‐diketones, 1,3‐keto esters and 1,3‐keto amides. Mechanistical studies show that the reaction is achieved via the C–C bond cleavage and CO release cascades.