Washington suspends dollar shipments to Baghdad amid militia row
09:56, 22/04/2026, Wednesday
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Washington has frozen nearly half a billion dollars in cash shipments destined for Baghdad as pressure mounts on Iraqi authorities to disband Iranian-aligned armed factions. The Treasury Department intercepted a cargo plane carrying USD currency while the State Department announced parallel suspensions of military assistance and counterterrorism funding.
The Treasury Department recently prevented a cargo aircraft transporting approximately
500 million dollars
in cash from reaching Iraq’s central banking authorities, according to diplomatic sources familiar with the matter. This intervention represents the second occasion since late February that American officials have obstructed planned currency transfers to Baghdad, signaling a dramatic shift in bilateral financial protocols between the two capitals.Military support suspended
Beyond monetary restrictions, American defense and diplomatic channels have formally notified Iraqi leadership that
Washington is pausing all fiscal backing
for critical counterterrorism operations and military education initiatives. These programs will remain dormant until Baghdad demonstrates concrete measures to neutralize armed factions aligned with Tehran and ensures the permanent cessation of hostile activities targeting US diplomatic and military installations across the region.Ultimatum from state department
Tommy Pigott
, spokesperson for the State Department, delivered an unequivocal message regarding the deteriorating security partnership, emphasizing that certain elements within the Iraqi administration continue offering political protection, financial resources, and operational assistance to proxy forces. Washington explicitly stated it would not endure further assaults on American interests, demanding immediate dissolution of Iran-supported paramilitary networks operating within Iraqi territory.Advertisement
Uncertainty over resolution
While characterizing the currency embargo as a temporary measure, American authorities declined to specify the exact conditions required to resume dollar shipments or restore security collaboration. The ambiguity leaves Baghdad facing mounting pressure to navigate between maintaining sovereignty and satisfying Washington’s security demands regarding the containment of external influence in Mesopotamian affairs.
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