The US Presidential Administration has temporarily suspended cash shipments to Iraq, demanding that Baghdad take decisive action against pro-Iranian militant groups.
According to Operative Information Center-OMM, citing foreign media reports, the US Department of Justice grounded a cargo aircraft carrying approximately $500 million in banknotes. These funds, sourced from Iraqi oil sales, were being transferred from accounts held at the Federal Reserve Bank of New York. In addition to the financial freeze, Washington has reportedly suspended cooperation with the Iraqi military on several key security programs.
This move marks the second time US President Donald Trump has halted such supplies since the commencement of military operations against Iran on February 28. The decision follows a series of attacks by pro-Iranian militias on US targets within Iraq and neighboring countries, which Washington views as a direct provocation supported by Tehran. The Trump administration is reportedly increasing pressure on Baghdad to weaken its ties with Iran and foster closer security cooperation with the United States.
The suspension of cash transfers highlights Iraq's significant economic vulnerability and its dependence on the US financial system. Since 2003, Iraq’s foreign currency reserves have been held at the Federal Reserve Bank of New York, providing Washington with substantial leverage over Baghdad’s liquidity. Such measures are typically employed to prevent the flow of US currency to sanctioned entities and to ensure that oil revenues are not diverted to groups designated as terrorist organizations by the United States.
