The Trump administration is applying diplomatic and economic pressure on Iraq to sever ties with Iran, focusing on halting dollar transactions and minimizing Iranian militia influence. New sanctions are anticipated, compelling Iraq to comply with U.S. demands regarding oil exports and regional militia oversight to avoid economic consequences.
The Trump administration is exerting both economic and diplomatic pressure on Iraq, aiming to diminish its economic ties with Iran and curb Iranian influence. Officials emphasize the need for Baghdad to stop U.S. dollar flow to Iran and tackle Iraqi cooperation in Iran’s oil exportation.
In response to Trump’s urging, Iraq’s Arab and Kurdish leaders have recommenced oil exports from northern Iraq. U.S. officials threaten sanctions should Baghdad fail to control Iranian-backed militias and prevent them from accessing advanced Iranian weaponry.
On February 4, the second Trump administration made its intentions clear with the issuance of “National Security Presidential Memorandum/NSM-2.” This policy reinforced a strategy of “maximum pressure” against Iran, explicitly directing U.S. officials to prohibit financial support from Iraq to Iran.
The memorandum specified that no waivers would be granted for sanctions relief regarding Iraq’s payments to Iran for gas and electricity, marking a significant shift from previous policies. Furthermore, Iraq’s financial institutions would be held accountable if they facilitated Iranian sanctions evasion.
Baghdad has reacted to U.S. threats, where recent interactions between Iraqi Central Bank officials and U.S. Treasury representatives highlighted compliance with sanctions. Iraq’s Central Bank has since restricted five additional banks from engaging in dollar transactions, following prior bans.
The Iraqi Oil Ministry has taken steps to prevent entities from aiding Iranian oil exports, refuting claims of Iraqi traders involved in smuggling operations. Iraqi oil exports, however, are conducted per international standards for transparency, countering past allegations of illicit activities.
Trump officials stress the reopening of a key oil export outlet in Iraq, aiming to offset the impact of reduced Iranian oil shipments. Despite restarting exports from Kurdish regions, these will not sufficiently replace Iran’s substantial oil exports to the global market.
Additionally, U.S. pressure includes potential economic penalties unless Iraq effectively disarms Iran-aligned militias. The urgency of dismantling these armed groups is heightened by their involvement in regional conflicts and hostile actions against U.S. interests.
Iraqi officials have acknowledged U.S. concerns regarding Iranian militia groups’ access to advanced weaponry and are aware of Washington’s call for restrictive measures. However, direct military action against these groups by U.S. forces remains an active consideration for the Trump administration.
The Trump administration is significantly intensifying pressure on Iraq to minimize its dependencies on Iran. Through sanctions and strategic economic policy shifts, the U.S. aims to curtail Iranian leverage in the region. Baghdad’s compliance will be critical, particularly regarding the disarmament of Iranian-aligned militias and preventing illicit oil trade. This ongoing dynamic is likely to reshape Iraq’s international relationships and influence within the region.
Original Source: thesoufancenter.org
