US President Donald Trump's administration has halted U.S. dollar shipments to Iraq and frozen security cooperation programs with its military, as it presses Baghdad to dismantle Iranian-backed armed groups operating in the country, the Wall Street Journal reported on Tuesday, citing Iraqi and U.S. officials.
U.S. Treasury Department officials recently blocked a delivery of nearly US$500 million in U.S. banknotes - the proceeds of Iraqi oil sales - from accounts at the Federal Reserve Bank of New York, the Journal said.
Advertisement
Reuters could not immediately verify the report. The U.S. Treasury Department and the Federal Reserve did not immediately respond to a request for comment.
Washington has also informed Baghdad it is suspending funding for some counterterrorism and military training programs until militia attacks end and Iraqi authorities take steps to dismantle armed groups, the report added.
The United States earlier this month summoned Iraq’s ambassador after a drone struck a major U.S. diplomatic facility in Baghdad, following a series of drone attacks that Washington has blamed on Iran‑aligned “terrorist armed groups."
