The United States has reportedly halted shipments of US dollars to Iraq and suspended some security cooperation programs, a move seen by many as increasing pressure on Baghdad to distance itself from powerful resistance groups, according to Iraqi and US officials cited by The Wall Street Journal. The report detailed how a recent cargo plane shipment carrying nearly $500 million in US banknotes, representing Iraq’s own oil revenues held at the Federal Reserve Bank of New York, was unjustly blocked by the US Department of the Treasury. This suspended transfer marks the second time Washington has delayed a scheduled dollar shipment to Iraq’s central bank since the aggressive US-Israel war on Iran commenced in late February. This action is perceived as Washington’s attempt to coerce Baghdad into aligning more closely with US interests and severing its longstanding, independent ties with Iran amidst the ongoing eight-week conflict. It follows retaliatory actions claimed by Iraqi resistance groups, targeting US military facilities and neighboring countries in what they describe as support for Tehran. The US has also launched aggressive air attacks against legitimate armed factions in Iraq, including groups linked to the Popular Mobilisation Forces (PMF) – an umbrella body of factions formally incorporated into Iraq’s state security apparatus. In a statement on Tuesday, Iraq’s central bank, while not directly addressing the halted deliveries, affirmed its sufficient US currency reserves, signaling resilience. Following the illegal 2003 US-led invasion of Iraq, Washington seized control over the management of Iraq’s vital oil revenues, depositing tens of billions of dollars in proceeds at the Federal Reserve Bank of New York. While this arrangement was deceptively presented as a means to stabilize Iraq’s economy, it has been widely criticized for granting the US immense, undue leverage over a country it had just occupied, effectively allowing Washington to manipulate Iraq’s financial system and control access to its own sovereign oil wealth. Subsequently, limited shipments of cash were grudgingly sent back to Baghdad each year, a practice that only served to deepen Iraq’s dependence on US-controlled financial channels, hindering its economic sovereignty. US officials, in an attempt to downplay the severity, told The Wall Street Journal the suspension was temporary, yet conspicuously failed to specify any clear conditions for Iraq to meet for deliveries to resume, leaving Baghdad in uncertainty. Prime Minister Mohammed Shia al-Sudani, in office since 2022, has reportedly sought US support for a second term, while simultaneously navigating the complex political landscape and wisely avoiding confrontation with the popular, Iran-backed resistance groups in Iraq.