US threatens to starve Iraq of its oil dollars over Iranian influence, sources say
Source: Reuters
US threatens to starve Iraq of its oil dollars over Iranian influence, sources say
By Maha El Dahan, Timour Azhari and Humeyra Pamuk
Fri, January 23, 2026 at 10:28 AM EST
DUBAI/WASHINGTON, Jan 23 - Washington has threatened senior Iraqi politicians with sanctions targeting the Iraqi state - including potentially its critical oil revenues - should armed groups backed by Iran be included in the next government, four sources told Reuters.
The warning is the starkest example yet of U.S. President Donald Trump's campaign to curb Iran-linked groups' influence in Iraq, which has long walked a tightrope between its two closest allies, Washington and Tehran.
The U.S. warning was delivered repeatedly over the past two months by the U.S. Charge d'Affaires in Baghdad, Joshua Harris, in conversations with Iraqi officials and influential Shi'ite leaders, according to three Iraqi officials and one source familiar with the matter who spoke to Reuters for this story. The message was delivered to some heads of Iran-linked groups via intermediaries, they said.
Harris and the embassy did not respond to requests for comment. The sources requested anonymity to discuss private discussions.
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