US Halts Cash Supply to Iraq, Pressuring Armed Groups

The U.S. government has blocked the supply of dollar cash entering Iraq to cut off the funding sources of pro-Iranian armed groups within the country.

This measure comes in response to repeated missile and drone attacks by Shiite militias targeting U.S. facilities and adjacent areas over recent weeks. The U.S. appears to be using the suspension of dollar supplies as leverage, judging the Iraqi government's response to be inadequate.

In addition to halting cash shipments, the U.S. has also conveyed its intention to suspend some security cooperation programs, including counter-terrorism and military training programs and information sharing, which it has been providing to Iraq. The U.S. State Department has urged the Iraqi government to take practical measures to dismantle Iranian-linked armed groups operating within its territory.

The U.S. has previously used cash shipments to Iraq as a diplomatic pressure tool, restricting them out of concerns that dollars could flow to armed groups.