US threatened to block Iraq from its Federal Reserve deposits over Iran-aligned politicians

The United States has threatened to cut Iraq off from its oil sales profits held in the US Federal Reserve. This action is intended to pressure Baghdad into excluding members of Iranian-aligned paramilitaries from the country’s next government following parliamentary elections. The warning was reportedly delivered by the top US diplomat in Iraq to Iraqi officials and influential Shia leaders. This use of economic leverage is not new, as the Trump administration previously made a similar threat in 2020 to prevent the expulsion of US troops.