United States suspends dollar shipments to Iraq to pressure Baghdad

The administration of U.S. President Donald Trump has suspended shipments of U.S. currency to Iraqi authorities and halted bilateral security cooperation programs. This decision was reported by the Wall Street Journal, citing government sources from both nations. The U.S. Treasury Department cancelled a scheduled flight that was intended to transport approximately 500 million dollars in cash. These funds represent proceeds from Iraqi oil sales held in accounts at the Federal Reserve Bank of New York. The primary objective of this economic measure is to pressure the Iraqi government to dismantle powerful paramilitary groups that are aligned with Iran. In addition to the financial freeze, the suspension of security cooperation programs marks a significant shift in diplomatic relations. These actions were taken following ongoing concerns regarding regional influence and the status of proxy organizations. The move effectively limits liquidity for the Iraqi central bank, complicating government operations in Baghdad.