United States warns Iraq of potential oil revenue freeze over inclusion of Iran backed groups in government

The United States UShas issued a direct warning to Iraqi IQpolitical leaders that it may impose sanctions targeting the nation's state finances if Iran IR-backed armed groups are included in the next government formation. According to four sources who spoke to Reuters, these warnings specifically target the flow of Crude Oil CLUSDrevenues from the Federal Reserve Bank of New York. This move would represent a significant escalation in American pressure by leveraging the Iraqistate’s primary source of the US Dollar / Iraqi Dinar USDIQD.

The warnings were delivered repeatedly over the past two months by Joshua Harris joshua harris, the USChargé d'Affaires in Baghdad, during private conversations with senior Iraqiofficials and influential Shiite political leaders. The threat focuses on the structural dependency of the Iraqieconomy on the Federal Reserve, which manages the accounts where the revenue of Iraqis deposited. While successive administrations in the UShave sanctioned more than a dozen Iraqibanks in recent years to curb illicit activity, the United Stateshas never previously curtailed the direct flow of dollars from the New York Fed to the Central Bank of Iraq.