Archive · 23 Jan 2026
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
- When
- Over the past two months, with recent actions in June and last week
- Where
- Iraq, with discussions in Baghdad and Washington
- Why
- To curb Iran-linked groups' influence in Iraq and protect Iraqi sovereignty
- 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