US reportedly halts dollar shipments to Iraq

The US has suspended shipments of US dollars to Iraq and paused security cooperation programs with the Iraqi military amid concerns over “Iran-backed militias,” according to officials, News.Az reports, citing the Wall Street Journal.

According to the report, Treasury Department officials recently stopped a cargo plane carrying nearly $500 million in cash due to fears that the funds could be linked to or exploited by these militias.

It added that this was the second planned dollar transfer to Iraq’s central bank that Washington had postponed since the Iran war began on February 28. The decision followed “weeks of militia attacks on American facilities in Iraq and neighboring countries,” the report said.

Washington has also informed Baghdad that it is suspending financial support for certain counterterrorism initiatives and military training programs until militia attacks stop and Iraqi authorities take action to dismantle the armed groups, according to the report.

US officials reportedly described the suspension of dollar shipments as temporary, though they did not specify what conditions Iraq must meet for deliveries to resume.

State Department spokesperson Tommy Pigott said: “The Iraqi government’s failure to prevent these attacks while some elements associated with the Iraqi government continue to actively provide political, financial and operational cover for the militias adversely impacts the U.S.-Iraq relationship.”

He added: “The United States will not tolerate attacks on U.S. interests and expects the Iraqi government to immediately take all measures to dismantle the Iran-aligned militia groups in Iraq.”

News.Az 

By Nijat Babayev