US Suspends Cash Shipment and Security Cooperation with Iraq

The United States has halted a shipment worth approximately $500 million in cash intended for Iraq, alongside suspending some security cooperation with Baghdad, as part of efforts to pressure the Iraqi government due to actions by Iran-backed militias. Sources indicated the measures are in response to the increasing involvement of Iraq in the regional conflict triggered by Iran.

The persistent assault by Iran-aligned groups using drones and rockets against U.S. installations has prompted retaliatory strikes by the U.S. This geopolitical tension adds strain on Prime Minister Mohammed Shia al-Sudani's government as it seeks equilibrium between U.S. and Iranian interests within Iraq. The halt is focused solely on physical cash transfers, not affecting electronic dollar transactions vital for import needs.

Iraqi officials expressed surprise at the abrupt cash flow disruption, noting that incoming shipments, which are critical for various domestic foreign exchange needs, were disrupted. The tensions have also led to formal diplomatic action by Gulf states against Iraq due to militia attacks allegedly originating from its territory, further complicating Iraq's foreign relations stance.

(With inputs from agencies.)