Washington uses Iraq's own oil money to bend Baghdad to its will
Summary
The US government blocked a shipment of nearly $500 million in US dollars meant for Iraq to push Baghdad to take action against Iranian-backed armed groups. This move is part of ongoing tensions linked to attacks on US facilities in the region and could affect Iraq’s already fragile economy.Key Facts
- The US stopped a delivery of about $500 million in cash to Iraq.
- The shipment delay is the second since the US-Israeli conflict with Iran began in February 2026.
- The US aims to pressure Iraq to dismantle Iranian-backed militias attacking US and regional targets.
- These militias have conducted drone attacks on Saudi Arabia, Kuwait, Bahrain, and the US Embassy in Baghdad.
- Iraq’s oil revenues have been held by the US Federal Reserve Bank of New York since 2003 for protection against creditors.
- The US has sent up to $13 billion yearly in cash to Iraq to fund government operations and civilian salaries.
- The current suspension of dollar shipments to Iraq is temporary, pending political changes and arrests of militia members.
- Iraqi officials say the Central Bank has enough US dollars currently to meet normal demand.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.