The United States wants to keep Iraq under pressure. American and Iraqi officials quoted by the Wall Street Journal say that the Trump administration recently blocked a transfer of $500 million in cash intended for the Iraqi Central Bank. This money comes from Iraqi oil revenues held in accounts at the Federal Reserve Bank of New York.
According to Washington, this decision is justified by the growing influence of Shiite militias supported by Iran, which are influential in Iraq. This is the second suspended transfer since the beginning of the war in the Middle East at the end of February.
In parallel, the United States has also suspended some funding related to the fight against terrorism and military training programs for Iraqi forces. These measures will remain in place as long as attacks against American interests continue and Baghdad does not take action against these armed groups.
“The United States will not tolerate attacks on its interests and expects the Iraqi government to take immediate action to dismantle militias aligned with Iran in Iraq,” said State Department spokesman Tommy Pigott.
For several weeks, American military bases, a consulate, and other installations in Iraq have been targeted by drone or rocket attacks attributed to pro-Iran groups. The United States has also carried out airstrikes against certain militias.
The Iraqi Central Bank has assured that it does not lack US dollars and claims to have responded to all requests from banks and exchange offices. However, the Iraqi economy remains largely reliant on cash in dollars. Since 2003, Iraqi oil revenues have partly passed through the United States, giving Washington significant financial leverage over the country.
