8 months ago
U.S. Pressures Iraq Over Iranian Influence
The U.S. is putting pressure on Iraq to not include Iranian-backed groups in its next government.
They are warning that if Iraq does this, the U.S. might put sanctions on Iraq, including on its oil money.
The U.S. says it wants to support Iraq's independence and stop groups that cause trouble.
Iran sees Iraq as important for its economy and has been using Iraq's banks to get around U.S. sanctions.
The U.S. has already put sanctions on some Iraqi banks but has not stopped the flow of money from the U.S. to Iraq's central bank.
The U.S. has also taken military action against Iran recently.
U.S. threatened Iraqi politicians with sanctions over Iranian-backed groups in the next government.
Sanctions could target Iraq's oil revenue and state, potentially affecting its critical supply sourced via the Federal Reserve Bank of New York.
U.S. supports Iraqi sovereignty and opposes Iran-backed militias, which it says cause sectarian division and spread terrorism.
Iran views Iraq as vital for its economy and has used Baghdad's banking system to skirt U.S. sanctions.
U.S. has sanctioned over a dozen Iraqi banks but has not curtailed dollar flows from the New York Fed to the Central Bank of Iraq.
- Who
- U.S. officials, Iraqi politicians, Iranian-backed groups
- What
- U.S. threatening sanctions on Iraq over Iranian influence
- Where
- Iraq, with discussions in Baghdad and Washington
- When
- Over the past two months, with recent actions in June and last week
- Why
- To curb Iran-linked groups' influence in Iraq and protect Iraqi sovereignty
Key facts
- U.S. Official
- Joshua Harris
- Iraqi Prime Minister
- Mohammed Shia al-Sudani
- U.S. President
- Donald Trump
- Sanctions Target
- Iraqi state and oil revenue
- Iran's View
- Iraq is vital for its economy
- U.S. Stance
- Supports Iraqi sovereignty, opposes Iran-backed militias
- U.S. Sanctions
- Over a dozen Iraqi banks
- U.S. Military Action
- Bombed Iran's nuclear program in June, threatened intervention during protests
Quotes
U.S. State Department spokesperson
A spokesperson for the U.S. State Department
“The United States supports Iraqi sovereignty, and the sovereignty of every country in the region. That leaves absolutely no role for Iran-backed militias that pursue malign interests, cause sectarian division, and spread terrorism across the region.”
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“U.S. efforts to achieve stability in the region are focused on ensuring states retain their sovereignty and can achieve security through mutual economic prosperity.”
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Iraqi official
An Iraqi official familiar with the U.S. warnings
“The American line was basically that they would suspend engagement with the new government should any of those 58 MPs be represented in cabinet.”
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“They said it meant they wouldn’t deal with that government and would suspend dollar transfers.”
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Renad Mansour
Director of the Iraq Initiative at London’s Chatham House think tank
“The U.S. has significant leverage. The threat of the loss of access to U.S. dollars, which is how Iraq’s economy functions through the sale of oil, has made it very concerning.”
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