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Source: https://www.ynetnews.com/opinions-analysis/article/rygpxygegx
U.S. Squeezes Iraq to Pressure Iranian Proxies
(Ynet News) Amine Ayoub - In July 2026, Iraq's Central Anti-Corruption Criminal Court monitored an asset recovery operation by security forces in Tikrit that uncovered $10.7 million in U.S. currency from a storm drain. This followed a raid that uncovered $20 million and 5 kg. of gold jewelry. Security forces have arrested dozens of senior bureaucrats, municipal lawmakers, and private contractors. The enforcement drive intensified significantly after the U.S. chose to leverage Iraq's financial dependence. Under a framework established after the 2003 U.S. invasion, Iraq's international oil revenues are deposited into a secure account at the Federal Reserve Bank of New York. The Central Bank of Iraq regularly draws down these reserves, flying millions in cash to Baghdad to maintain liquidity within its cash-reliant domestic marketplace. Citing intelligence that these funds were leaking into the hands of sanctioned Iranian entities and hostile regional armed groups, Washington enacted a four-month suspension of $500 million in currency deliveries and conditioned resumption on rigorous, transparent central bank financial audits. The currency shipments were restored shortly after Baghdad executed its high-profile arrests. The Morocco-based writer is a fellow at the Middle East Forum.