US Halts Iraq Dollar Shipments

The United States, under Donald Trump's administration, has halted US dollar shipments to Iraq and frozen security cooperation programs with its military. This move is part of a broader 'Economic Fury' campaign aimed at pressuring Iraq to dismantle Iran-backed militias operating within its borders. The US Treasury Department blocked a delivery of nearly $500 million in US banknotes, which are proceeds from Iraqi oil sales, from accounts at the United States — Federal Reserve Bank of New York. Washington has also suspended funding for counter-terrorism and military training programs until militia attacks cease and Iraqi authorities take concrete steps to rein in armed groups. This pressure comes after a series of drone attacks on US diplomatic facilities in Baghdad, which the United States blames on Iran-aligned 'terrorist militias' like Kata ib Hezbollah. The US has also designated several Iran-backed Iraqi militia commanders as terrorists and offered a $10 million reward for information on Ahmed Al-Hamidawi, the leader of Kata ib Hezbollah. Regional allies like Saudi Arabia, the United Arab Emirates, Kuwait, Bahrain, Jordan, and Syria have also been targets of attacks blamed on these militias, leading to formal protests lodged with Iraq. The United States is demanding 'concrete actions' from Iraq's next prime minister, Ali al-Zaidi, to distance the state from these groups, including expelling them from state institutions and cutting off their financial support.