The Trump administration has reportedly stepped up punitive measures to force Iraq to disband the Iranian regime-backed militias known as the Popular Mobilization Force (PMF), which are part of the government, following continued attacks on US personnel and facilities.
Amid a tenuous ceasefire between the US and the Islamic Republic of Iran, the administration has tightened the screws on Iraq by halting US dollar shipments to Baghdad. The growing policy disagreements between the US and Iraq could lead to a weakening of the Iranian presence in the region and further US war objectives against Tehran.
US WARNS IRAQ MUST ACT AGAINST IRAN-SUPPORTED MILITIA ATTACKS ON US RESOURCES
On March 12, 2026, an explosion occurred near the U.S. Consulate and Erbil International Airport, home to a U.S. military base, in Erbil, Iraq, causing fire and thick smoke to rise after the explosion. (Ahsan Mohammed Ahmed Ahmed/Anadolu)
The spokesperson added: “While we recognize the efforts of Iraqi security forces to respond to terrorist attacks by Iran-affiliated militias, we continue to emphasize 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 to the militias, negatively impacting the US-Iraq relationship. The United States will not tolerate attacks on US interests and expects the Iraqi government to immediately take all measures to US-Iraq relationship. Iran-linked militias in Iraq.”
The Wall Street Journal first reported last week on the security and financial sanctions imposed on Iraq. According to the report, the U.S. has halted security cooperation programs with the Iraqi military and “suspended the delivery of nearly $500 million in U.S. banknotes by cargo plane, proceeds from Iraqi oil sales from accounts of the Federal Reserve Bank of New York.”
The newspaper said it was the second blocked delivery of dollars to the Central Bank of Iraq since the start of the US-Israeli war against Iran on February 28.
The Treasury Department declined to comment on the blocked payments.
Iraqi security forces stand guard during a funeral procession in Baghdad on March 8, 2026, for a slain Popular Mobilization Forces member who was killed in a US-Israeli airstrike in Mosul the night before. (Ahmad Al-Rubaye/AFP)
Regarding the pro-Iranian militias, the Iraqi official said: “On the issue of armed factions, it is important to note that the Iraqi reality is very complex, with overlapping political, security and social dimensions. Some of these factions also possess political and popular influence. Therefore, addressing this issue requires a careful and gradual approach, based on a deep understanding of the domestic context, in a way that strengthens state authority and ensures that weapons are limited to the hands of the state, while maintaining internal stability.”
TRUMP THREATENS TO END SUPPORT FOR IRAQ OVER AL-MALIKI’S COMEBACK BID TIED TO IRAN INFLUENCE
A billboard with a photo of the late Iranian Supreme Leader Ali Khamenei is seen along a street in Baghdad on March 9, 2026. (Murtadha Al-Sudani/Anadolu)
The official added: “External measures that do not take into account the specifics of this reality could lead to counterproductive results and negatively affect internal balances, which would not benefit the stability efforts of Iraq and its partners, including especially Washington.”
The PMF is an umbrella organization of militias largely loyal to the Islamic Republic of Iran – the world’s worst state sponsor of terrorism, according to the State Department. Members of the PMF have launched attacks on US assets in Iraqi Kurdistan and on Iraqi Kurds – a valuable US ally in the Middle East.
The Kurdish official said: “They have made it clear that things will only get worse for Iraq if militias resume attacks on US interests, including in the Kurdistan region. It is high time that the Americans pull this lever; for too long it has allowed Iran to choose a prime minister and dictate the rules, despite repeated encouragement to veto Iran’s cuts in Iraq.”
Both Iraqi and Kurdish officials said the government is in flux as the various parties position themselves to elect a new Iraqi prime minister.
Smoke rises from the U.S. Embassy in Baghdad, Iraq, on March 14, 2026, after an attack on the diplomatic mission. (Ali Jabar/AP)
The Trump administration is opposing the return of former Iraqi Prime Minister Nouri al-Maliki because of his close ties to Iran.
The Kurdish official emphasized the role of the majority Shia population in Iran: “In the end, however, it is still the Shia house that chooses the premiership. They have some leeway, but ultimately they will select a candidate acceptable to both Iran and the United States. That is the game – and America has always responded to Iran’s game. This time, however, Washington seems intent on influencing the outcome rather than just observing it.”
The official added: “This is especially important because Iraq is dependent on oil and its proceeds are deposited with the US Federal Reserve and US banks. How Washington behaves towards those deposits influences the process and reconfigures the balance within the Shia house. It matters enormously.”
Entifadh Qanbar, a former spokesman for Iraq’s Deputy Prime Minister, warned that there is an urgent need for Iraqi Prime Minister Mohammed Shia’ al-Sudan to quickly dismantle the PMF as they pose a clear and present danger to the US Embassy in Baghdad.
Iraqi Shia men hold photos of Iran’s former Supreme Leader Ayatollah Ali Khamenei during a symbolic funeral in Najaf, Iraq, on March 1, 2026. (Anmar Khalil/AP)
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Underscoring the dangers of the PMF, the US Justice Department on Monday announced a $10 million bounty for the terrorist leader of the pro-Iranian militia Harakat Ansar Allah al-Awfiya (HAAA).
The American embassy wrote this on Monday on X that pro-Iranian militia ‘Harakat Ansar Allah al-Awfiya (HAAA) terrorists have launched attacks across Iraq and the region, including the April 8 ambush of US diplomats near Baghdad International Airport. HAAA terrorists continue to undermine Iraqi sovereignty while threatening the safety and security of both Iraqi and American citizens. We will not tolerate attacks on American interests and expect that all measures will be taken to eliminate Iran-linked terrorist militias in Iraq.”
