Trump admin warns Iraq over Iran terror proxies as US reportedly blocks cash payments

The Trump medication has reportedly ramped up its punitive measures to compel Iraq to disband Iranian regime-backed militias known arsenic the Popular Mobilization Force (PMF) that signifier portion of its authorities aft sustained attacks connected U.S. unit and facilities.

Amid a tenuous ceasefire betwixt the U.S. and the Islamic Republic of Iran, the medication tightened the screws connected Iraq by stopping U.S. dollar shipments to Baghdad. The increasing disagreements implicit argumentation betwixt the U.S. and Iraq could pb to weakening Iran’s beingness successful the portion and beforehand U.S. warfare aims against Tehran.

In a connection against Iraq’s government, a State Department spokesperson told Fox News Digital, "The United States has consistently been wide we volition instrumentality each measures to antagonistic Iran’s destabilizing activities successful Iraq, support U.S. interests against Iran-aligned violent militias successful Iraq, and marque wide our concerns astir the Iraqi government’s nonaccomplishment to forestall this terrorism."

US WARNS IRAQ MUST ACT AGAINST IRAN-BACKED MILITIA ATTACKS ON AMERICAN ASSETS

An detonation occurred adjacent the U.S. Consulate and Erbil International Airport, wherever a U.S. subject basal is located, successful Erbil, Iraq, connected March 12, 2026, causing occurrence and heavy fume to emergence pursuing the blast. (Ahsan Mohammed Ahmed Ahmed/Anadolu)

The spokesperson added that "While we admit the efforts of Iraqi Security Forces to respond to violent attacks by Iran-aligned militia groups, we proceed to stress that the Iraqi government’s nonaccomplishment to forestall these attacks portion immoderate elements associated with the Iraqi authorities proceed to actively supply political, financial, and operational screen for the militias adversely impacts the U.S.-Iraq relationship. The United States volition not tolerate attacks connected U.S. interests and expects the Iraqi authorities to instantly instrumentality each measures to dismantle the Iran-aligned militia groups successful Iraq."

The Wall Street Journal archetypal reported past week astir the information and fiscal penalties imposed connected Iraq. According to the report, the U.S. halted information practice programs with Iraq’s subject and stopped "a cargo-plane transportation of astir $500 cardinal successful U.S. banknotes, the proceeds from Iraqi lipid income from Federal Reserve Bank of New York accounts."  

The paper said it was the 2nd blocked transportation of dollars to the Central Bank of Iraq since the commencement of the U.S.-Israel warfare connected Feb. 28 against Iran. 

The Treasury Department declined to remark connected the blocked payments.

Iraqi information forces basal defender during a funerary procession successful Baghdad connected March 8, 2026, for a slain subordinate of the Popular Mobilisation Forces killed successful a U.S.-Israeli airstrike successful Mosul the erstwhile evening. (Ahmad Al-Rubaye/AFP)

An Iraqi authoritative told Fox News Digital that "With respect to relations with the United States, Iraq views them arsenic an important concern based connected shared interests and cooperation. The 2 sides person fought unneurotic successful a decisive conflict against ISIS, reflecting the extent and value of this relationship."

In notation to the pro-Iran militias, the Iraqi authoritative said, "As for the contented of equipped factions, it is important to enactment that the Iraqi world is highly complex, with overlapping political, information and societal dimensions. Some of these factions besides person governmental and fashionable influence. Accordingly, addressing this contented requires cautious and gradual approaches grounded successful a heavy knowing of the home context, successful a mode that strengthens authorities authorization and ensures that weapons are confined to the hands of the authorities portion maintaining interior stability."

TRUMP THREATENS TO END IRAQ SUPPORT OVER AL-MALIKI COMEBACK BID TIED TO IRAN INFLUENCE

A billboard featuring a photograph of Iran’s ultimate person Ali Khamenei is seen on a thoroughfare successful Baghdad connected March 9, 2026. (Murtadha Al-Sudani/Anadolu)

The authoritative added that "External measures that neglect to instrumentality into relationship the particularities of this world whitethorn pb to counterproductive outcomes and negatively impact interior balances, which would not service the stableness efforts undertaken by Iraq and its partners, foremost among them Washington."

The PMF is an umbrella enactment of militias mostly loyal to the Islamic Republic of Iran — the world’s worst state-sponsor of terrorism, according to the State Department. Members of the PMF person launched attacks connected U.S. assets successful Iraqi Kurdistan and against Iraqi Kurds — a invaluable U.S. state successful the Mideast.

A elder Kurdish authoritative told Fox News Digital, "The dollar intermission is portion of the atomic enactment successful the Treasury Department, and the Americans person ever been reluctant to leverage it. The Iraqis, meanwhile, person been cruel to their partners — Americans and the KRG [Kurdish Regional Government], arsenic this warfare has shown — and present Washington is drafting a reddish line."

The Kurdish authoritative said, "They’ve made it wide things volition lone get worse for Iraq if militias resume attacks against U.S. interests, including successful the Kurdistan Region. It’s precocious clip the Americans pulled this lever; for excessively long, it has allowed Iran to prime a premier and dictate the rules, contempt repeated encouragement to veto Iran’s cut-outs successful Iraq."

Both Iraqi and Kurdish officials said the authorities is successful flux arsenic the differnt sides presumption themselves to prime a caller Iraqi premier minister.

IRAQI STATE BANK ACCUSED OF PROCESSING PAYMENTS FOR HOUTHI TERRORISTS WHO DISRUPT RED SEA COMMERCE

Smoke rises from the U.S. embassy gathering successful Baghdad, Iraq, connected March 14, 2026, pursuing an onslaught connected the diplomatic mission. (Ali Jabar/AP)

The Trump medication opposes the instrumentality of erstwhile Iraqi Prime Minister Nouri al-Maliki due to the fact that of his adjacent ties to Iran. 

The Kurdish authoritative stressed the relation of the bulk Shiite colonisation successful Iran: "In the end, though, it’s inactive the Shia location that chooses the premiership. They person immoderate latitude, but ultimately, they volition prime a campaigner acceptable to some Iran and the United States. That’s the crippled — and America has ever reacted to Iran’s game. This time, however, Washington appears intent connected influencing the result alternatively than conscionable observing it."

The authoritative added, "This matters particularly due to the fact that Iraq depends connected oil, and its proceeds are deposited successful the U.S. Federal Reserve and American banks. How Washington behaves vis-à-vis those deposits influences the process and reconfigures the equilibrium wrong the Shia house. It matters enormously."

Entifadh Qanbar, a erstwhile spokesperson for the lawman premier curate of Iraq, warned that determination is simply a pressing request for the Iraqi Prime Minister Mohammed Shia' al-Sudan to swiftly dismantle the PMF due to the fact that they correspond a wide and contiguous information to the U.S. Embassy successful Baghdad.

Iraqi Shiite men clasp pictures of Iranian Supreme Leader Ayatollah Ali Khamenei during a symbolic ceremonial successful Najaf, Iraq, connected March 1, 2026. (Anmar Khalil/AP)

He told Fox News Digital, The Iraqi authorities besides provides these groups with authorities recognition cards, vehicles, and authoritative authorities licence plates nether the screen of the PMF structure. This allows them to participate Baghdad’s high-security Green Zone astatine volition and endanger the U.S. Embassy oregon immoderate Iraqi authorities institution."

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To underscore the dangers of the PMF, the U.S. Department of Justice announced connected Monday a $10 cardinal bounty connected the violent person of the pro-Iranian militia Harakat Ansar Allah al-Awfiya (HAAA).
 

The U.S. embassy connected Monday wrote connected X that the pro-Iran militia "Harakat Ansar Allah al-Awfiya (HAAA) terrorists person launched attacks crossed Iraq and the region, including the April 8 ambush of U.S. diplomats adjacent the Baghdad International Airport.  HAAA terrorists proceed to undermine Iraqi sovereignty portion threatening the information and information of some Iraqi and U.S. civilians.  We volition not tolerate attacks connected U.S. interests and expect each measures volition beryllium taken to dismantle Iran-aligned violent militia groups successful Iraq."