The Trump administration has intensified its measures against Iraq in response to ongoing attacks on U.S. personnel and facilities by Iranian regime-backed militias, specifically the Popular Mobilization Force (PMF), which is integrated into the Iraqi government [1]. As part of these punitive actions, the U.S. has reportedly halted shipments of U.S. dollars to Baghdad, including blocking a cargo-plane delivery of nearly $500 million in U.S. banknotes derived from Iraqi oil sales held at the Federal Reserve Bank of New York [1]. This marks the second time such a delivery to the Central Bank of Iraq has been blocked since the onset of the U.S.-Israel war against Iran on February 28 [1].
A State Department spokesperson emphasized that the United States will take all necessary measures to counter Iran's destabilizing activities in Iraq and protect U.S. interests from Iran-aligned terrorist militias [1]. The spokesperson also criticized the Iraqi government's failure to prevent attacks by these groups and warned that continued support for the militias by elements within the Iraqi government could adversely impact U.S.-Iraq relations [1]. The U.S. expects the Iraqi government to immediately dismantle the Iran-aligned militia groups [1].
The Treasury Department declined to comment on the blocked payments [1]. An Iraqi official responded by highlighting the importance of the U.S.-Iraq partnership, referencing their joint efforts against ISIS, but acknowledged the complexity of addressing the issue of armed factions due to their political and popular influence in Iraq [1]. The official suggested that resolving the militia issue would require careful and gradual approaches [1].
The Wall Street Journal was cited as the first to report on the security and financial penalties imposed on Iraq, including the halt of security cooperation programs with Iraq's military [1]. These actions signal a significant escalation in U.S. pressure on Iraq to curb the influence of Iran-backed groups within its borders [1].
CONCLUSION
The U.S. decision to block a $500 million cash shipment to Iraq and halt security cooperation underscores escalating tensions over Iran-backed militias. These measures are likely to have significant financial and diplomatic repercussions for Iraq, increasing pressure on its government to address the influence of the PMF and other Iran-aligned groups.