US Steps up Pressure on Iraq over Militias

Washington has intensified pressure on Iraq to dismantle Iran-backed militias following attacks on US interests, deepening tensions as regional instability grows.

Reports from The Wall Street Journal and The New York Times indicate the US has suspended financial support to Iraqi security forces, halted joint training programs, and blocked the transfer of roughly $500 million in Iraqi oil revenues held at the Federal Reserve Bank of New York.

The move places Baghdad in a difficult position as it maintains ties with both the US and Iran, while facing increasing demands from Washington to distance itself from Tehran and rein in affiliated armed groups.

US officials have also paused dollar shipments to Iraq and frozen parts of security cooperation with the Iraqi military, according to the reports.

Authorities in Washington have reportedly stopped the release of large cash transfers linked to Iraq’s oil income, though no formal public confirmation has been issued. Sources familiar with the matter suggest the suspension is temporary.

In parallel, the US has warned that funding for counterterrorism and military training programs will remain on hold unless militia attacks cease and Iraqi authorities take concrete steps to dismantle these groups.

A State Department spokesperson stressed that the US will not tolerate attacks on its interests and expects immediate action from Baghdad to disband Iran-aligned militias.

The Pentagon has yet to comment on the suspension of cooperation, which includes operations against ISIS as well as training and logistical support for Iraqi forces.

During the recent conflict involving Iran, several US-linked sites in Iraq, including the embassy in Baghdad and military facilities, were targeted. Iran-backed militias claimed responsibility for a number of these attacks following a US strike on one of their positions.

From the Iraqi side, Hussein Allawi, national security adviser to Prime Minister Mohammed Shia al-Sudani, indicated that US support has been paused until a new government is formed, a process that could take weeks.

He noted that security assistance had already been reduced to $49 million last year, suggesting the latest measures may have a limited and temporary effect, while still emphasizing the importance of continued coordination.

However, an Iraqi defense official warned that the halt in US backing is likely to impact air force logistics and military training, highlighting potential operational challenges for the country’s armed forces.