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U.S. Blocks Iraq's Dollar Shipments to Squeeze Its Iran-Backed Militias
(Wall Street Journal) David S. Cloud - The Trump administration has suspended U.S. dollar shipments to Iraq and frozen security cooperation programs with its military, escalating the pressure on Baghdad to dismantle powerful Iranian-backed militias, said Iraqi and U.S. officials. A cargo-plane delivery of $500 million in U.S. banknotes, the proceeds from Iraqi oil sales, was blocked recently by Treasury Department officials because of U.S. concerns about the militias, officials said. Iraqi militias have attempted hundreds of small-scale drone and rocket attacks on American facilities in Iraq and neighboring countries since the war began in a show of support for Tehran. The U.S. has informed Baghdad that it was also suspending funding for counterterrorism and armed forces training programs until the militia attacks stop and Iraqi officials take steps to dismantle the armed groups. "The Iraqi government's failure to prevent these attacks while some elements associated with the Iraqi government continue to actively provide political, financial and operational cover for the militias adversely impacts the U.S.-Iraq relationship," State Department spokesperson Tommy Pigott said. Iraq's most potent militias have enormous influence within Iraq's government and financial sectors. Some militia units have been incorporated formally into Iraq's armed forces, making it hard for any prime minister to challenge them.