America Suspends Dollar Shipments to Iraq Amid Pressure on Armed Groups

Suspension of Dollar Shipments from Iraqi Oil Revenues
The Wall Street Journal reported, citing Iraqi and American officials, that the administration of President Donald Trump has suspended dollar shipments to Iraq, along with freezing security cooperation programs with the Iraqi army.
This comes as part of a pressure policy aimed at pushing Baghdad to take steps to dismantle Iran-backed armed groups operating within the country.
The report added that officials at the U.S. Treasury recently prevented the delivery of nearly $500 million in U.S. currency, which is revenue generated from Iraqi oil sales, and it was held from accounts at the Federal Reserve Bank in New York.
Position of the Treasury and the Federal Reserve and Lack of Verification
Reuters noted that it has not been able to independently verify the accuracy of this information so far.
Neither the U.S. Treasury nor the Federal Reserve has issued any official comment on these reports despite repeated requests for clarification.
Suspension of Security Funding and Anti-Terrorism Programs for Iraq
According to the report, the United States has informed the Iraqi government that it will also suspend funding for some anti-terrorism programs and military training.
This decision comes until the attacks attributed to armed factions cease, and until Iraqi authorities take clear steps to dismantle these groups.
The newspaper also reported that these measures are part of a broader pressure strategy on Baghdad regarding internal security and regional influence.
Rising Tensions After Attacks Targeting U.S. Diplomatic Facilities
The report indicated that the United States summoned the Iraqi ambassador earlier this month, following a drone attack that targeted a major U.S. diplomatic facility in Baghdad.
This incident is part of a series of previous attacks, for which Washington has held what it described as “terrorist militias” linked to Iran responsible, increasing tensions between the two sides in recent times.