The Trump administration is pressuring Iraq to weaken its ties with Iran by enforcing sanctions and reducing Iranian militia influence. This includes reopening oil exports from Kurdish regions and preventing dollar transactions with Iran. Iraqi officials are responding to avoid economic repercussions, while ensuring compliance with U.S. demands amidst tensions in the region.
The Trump administration is exerting both economic and diplomatic pressure on Iraq to decrease its connections with Iran and minimize its influence. Officials from the Trump administration are urging Baghdad to halt the flow of U.S. dollars to Iran and crack down on any Iraqi authorities allegedly collaborating with Iran’s oil export illicit activities. In response to U.S. encouragement, Kurdish leaders in Iraq resumed previously halted oil exports from the northern Kurdish region.
U.S. authorities are leveraging the potential of sanctions to urge Baghdad to control Iranian-aligned militia groups and restrict their access to advanced Iranian weaponry. The second Trump administration emphasized its commitment to pressuring the Iraqi government to limit its economic dependency on Iran. This was articulated in a National Security Presidential Memorandum, which underscored the refusal to grant any financial concessions to Iran.
The memorandum mandates that U.S. officials curb Iraqi dollar transactions with Iran and disallow Iran’s payment for electricity and natural gas supplied to Iraq. It also posits that the reopening of an oil pipeline from Kurdish-controlled northern Iraq to Türkiye may offset a decline in Iranian oil trades, especially with China. The Trump administration’s stance includes compelling Iraq to assimilate Iran-aligned militias into a formal command structure, or ideally, to disband them.
While avoiding the option of military action against these militias, Trump has indicated he would act if U.S. forces are attacked. The memorandum delineates Iraq as a focal point in a broader initiative to deny Iran crucial revenues and weaken its alliances. Furthermore, it calls for the Secretary of State to restrict sanctions waivers that might afford Iran economic relief.
Baghdad has reacted to the threat of U.S. sanctions, which were underscored during a recent meeting between Iraqi Central Bank officials and U.S. Treasury representatives. Iraq’s Central Bank has taken action by prohibiting additional banks from engaging in dollar transactions as part of broader anti-money laundering efforts to prevent any financial benefits reaching Iran.
In anticipation of U.S. pressure, Iraq’s Oil Ministry has publicly rejected allegations of facilitating Iranian oil exports, emphasizing adherence to international standards in its oil trading practices. Iraqi officials are keenly aware of potential U.S. sanctions that could affect their energy institutions, thus disavowing any involvement in Iran’s illicit oil operations.
In addition to curbing economic ties with Iran, Trump officials are advocating for a protracted reopening of a vital oil export channel. This initiative aims to bolster Iraqi oil exports by resolving persistent export disputes between Baghdad and the Kurdistan Regional Government, thereby mitigating the impact of reduced Iranian oil exports in the global market.
Trump’s team has cautioned Iraqi authorities about economic repercussions unless they effectively govern Iranian-aligned militia groups. Reports indicate that U.S. officials have conveyed the importance of disbanding or assimilating these factions into the central authority, particularly those implicated in anti-U.S. military actions. As such, there are discussions on expanding restrictions on Iranian weapon supplies to all armed groups within Iraq, highlighting the importance of managing these relationships amid regional tensions.
Currently, Iranian-aligned factions have largely refrained from targeting U.S. interests since the ceasefire accord following the January 2025 conflict in Gaza. However, there remains a potential threat of resumption should tensions escalate again, emphasizing the precarious nature of U.S-Iraq relations under the Trump administration’s policies.
The Trump administration is strategically applying pressure on Iraq to reduce its economic and political ties with Iran. This approach includes threats of sanctions, urging Iraq to restrict Iranian militia operations and reestablish oil exports. The administration’s policy seeks to contain Iranian revenue flow while reinforcing Iraqi sovereignty over influence from Tehran. This ongoing dynamic underscores the complexities of U.S. relations with Iraq and Iran amid evolving geopolitical challenges.
Original Source: thesoufancenter.org
