US Halts Cash Deliveries to Iraq and Curbs Cooperation
The United States has halted deliveries of around $500m in cash to Iraq and suspended parts of its security cooperation with Baghdad. Iraqi sources say the move is intended to pressure the government over the activities of Iran-backed militias.
The measures come as Iraq becomes increasingly entangled in tensions between Iran and the United States. Armed groups linked to Tehran have repeatedly targeted US interests and neighbouring countries with drones and missiles.
According to the sources, the decision applies only to physical shipments of between $450m and $500m that are regularly flown to Baghdad. The cash is primarily used to meet demand for foreign currency for travel, health care and study abroad.
Electronic dollar transfers for imports and trade remain unaffected. The Central Bank of Iraq said it had not received official notification of the halt, but confirmed that the April shipment had not arrived.
The United States also warned Baghdad it would not tolerate inaction against militias targeting US interests and allies in the region. It has suspended some military cooperation, including intelligence sharing.