The Trump administration is intensifying economic and diplomatic pressure on Iraq to sever ties with Iran and reduce Iranian influence. Officials are demanding an end to dollar flows to Iran and increased accountability regarding pro-Iran militias. A new memorandum emphasizes sanctions on Iraqi banks facilitating these transactions, while Iraq’s leadership responds with compliance measures to prevent sanctions and safeguard their financial systems.
The Trump administration is exerting both economic and diplomatic pressure on Iraq to diminish its economic ties with Iran and decrease Iranian influence in the region. Officials are urging Baghdad to cut off the flow of dollars to Iran and to curb Iraqi collaboration with Iran’s illegal oil exports. Following administration proddings, Iraq’s Arab and Kurdish leadership has resumed stalled oil exports from the northern Kurdish regions.
U.S. officials have wielded the threat of sanctions as leverage to compel Iraq to restrict pro-Iranian militias and prevent their access to Iranian-supplied advanced arms. On February 4, the administration issued a memorandum outlining its intent to enforce strict conditions that will not allow Iraq to financially assist Iran. This included directions to obstruct any Iraqi dollar transactions with Iran.
The memorandum is part of a broader strategy to undermine Iran’s financial stability. Trump instructed the Secretary of State to rescind sanctions waivers, particularly those allowing Iran to receive funds from Iraqi energy deals. The report emphasizes that there will be no issuance of new waivers, a stark contrast to the previous administration’s policies.
Furthermore, the Trump administration is maintaining its stance against banks that do not prevent dollar transactions from reaching Iranian entities. The memorandum emphasizes collaboration between the Secretary of State and other agencies to safeguard the Iraqi financial system from Iranian sanctions circumvention. Baghdad has responded to these threats, leading to additional bans on banks involved in dollar dealings.
To avert heightened sanctions, Iraqi officials have proactively assured compliance with U.S. demands. The Oil Ministry reiterated that Iraqi oil sales are conducted transparently and denied any involvement in the illicit trade of Iranian oil. Such statements aim to counter claims of smuggling facilitated by militias aligned with Iran, which purportedly generate substantial revenue for Tehran.
Concurrently, Trump officials are advocating for the resumption of key oil exports from Iraqi Kurdistan to alleviate the global oil market’s reliance on Iranian oil. Interruptions in these exports, due to disputes with Kurdistan, have stalled since early 2023, but renewed pressure from the U.S. is leading to a resolution. The Oil Ministry confirmed that oil exports from northern Iraq will recommence shortly.
In addition to economic encouragements, the U.S. is demanding Iraq dismantle or integrate Iran-aligned militias under governmental control, warning of potential economic repercussions for non-compliance. Iraqi diplomats report increased dialogue on financial penalties if militias continue to operate independently. Washington’s pressure relates particularly to groups suspected of planning attacks against U.S. interests in the region.
During these discussions, U.S. officials have targeted Iranian-aligned groups that have threatened American personnel or Israeli assets. The emphasis remains on restricting access to Iranian-supplied weaponry while monitoring all factions within Iraq, even those within the national command. The focus on economic restrictions, without immediate military action, suggests a strategic approach to stabilize Iraq’s security situation amid rising tensions.
In summary, the Trump administration’s strategy is to significantly reduce Iran’s influence in Iraq by imposing economic pressures and encouraging Baghdad to control Iranian-aligned militias. The U.S. has warned of sanctions if Iraq fails to comply, particularly concerning financial dealings with Iran and militia operations. Recent measures indicate a strong response from Iraq’s leadership to align with U.S. directives and mitigate Iranian encroachment in the region.
Original Source: thesoufancenter.org
