US suspends dollar shipments to Iraq due to concerns over ‘Iran-backed militias’: Report

Washington has halted shipments of US dollars to Iraq and paused security cooperation programs with its military in an effort to dismantle “Iranian-backed militias,” the Wall Street Journal reported Tuesday, citing officials.

Treasury Department officials recently stopped a cargo plane carrying close to $500 million in cash due to concerns about these militias, the report said.

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

Washington has also notified Baghdad that it is suspending financial support for certain counterterrorism initiatives and military training programs until militia attacks cease and Iraqi authorities take action to disband these armed factions, it added.

According to the report, US officials reportedly described the suspension of dollar shipments as temporary but did not specify what actions Iraq must take for deliveries to restart.

“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,” State Department spokesperson Tommy Pigott said.

“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.”