US Tightens Grip on Iraq's Oil Money to Counter Iran's Influence

The United States is intensifying its control over Iraq's oil revenue to diminish Iran's sway in the region. By requiring Iraq to sell its oil in dollars through the US financial system, particularly the Federal Reserve Bank of New York, the US gains significant leverage over Iraq.

This strategy is designed to disrupt Iran's support for armed groups in Iraq and compel Iraqi politicians to prevent Iran-linked figures from gaining power in the government. The US is sending a clear message to Iraq to carefully choose its allies and pay the price for aligning with Iran.

This move puts pressure on Iraq's fragile political system, which has been attempting to balance relationships with both Washington and Tehran. The US's approach under President Donald Trump involves tightening oversight on Iraqi banks and controlling access to Iraq's oil money, raising concerns about foreign interference in Iraq's sovereignty and economic stability.