Wednesday, January 28, 2026
US, IN CONTROL OF OIL DOLLARS, HEAPS PRESSURE ON IRAQ OVER IRANIAN INFLUENCE
US, IN CONTROL OF OIL DOLLARS, HEAPS PRESSURE ON IRAQ OVER IRANIAN INFLUENCE
Washington has threatened senior Iraqi politicians with sanctions targeting the Iraqi state — including potentially its critical supply of oil revenue sourced via the Federal Reserve Bank of New York — should Iran-backed armed groups be included in the next government, four sources told Reuters.
The warning is the starkest example yet of US 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 US warning was delivered repeatedly over the past two months by the US Charges d’Affaires in Baghdad, Joshua Harris, in conversations with Iraqi officials and influential Shi’ite leaders, including some heads of Iran-linked groups via intermediaries, according to three Iraqi officials and one source familiar with the matter who spoke to Reuters for this story.
Harris and the embassy did not respond to requests for comment. The sources requested anonymity to discuss private discussions. Since taking office a year ago, Trump has acted to weaken the Iranian government, including via its neighbor Iraq.
Iran views Iraq as vital for keeping its economy afloat amid sanctions and long used Baghdad’s banking system to skirt the restrictions, US and Iraqi officials have said. Successive US administrations have sought to choke that dollar stream, placingsanctions on more than a dozen Iraqi banks in recent years in an effort to do so.
But Washington has never curtailed the flow of dollars from the oil revenues of Iraq, a top OPEC producer, sent via the Federal Reserve Bank of New York to the Central Bank of Iraq.
The US has had de facto control over Iraq’s oil revenue since it invaded the country in 2003. Iraqi Prime Minister Mohammed Shia al-Sudani’s office, the Central Bank of Iraq and Iran’s mission at the United Nations did not respond to requests for comment.
“The United States supports Iraqi sovereignty, and the sovereignty of every country in the region. That leaves absolutely no role for Iran-backed militias that pursue malign interests, cause sectarian division, and spread terrorism across the region,” a US State Department spokesperson told Reuters, in response to a request for comment.
The spokesperson did not answer Reuters questions about the sanction threats.
Trump, who bombed Iran’s nuclear facilities in June, threatened to again intervene militarily in the country during protests last week.
No armed groups in new government
Among the senior politicians to whom Harris’ message was passed were Prime Minister al-Sudani, Shia politicians Ammar Hakim and Hadi Al Ameri, and Kurdish leader Masrour Barzani, three of the sources said.
The conversations with Harris started after Iraq held elections in November in which al-Sudani’s political bloc won the single-largest bloc of seats but in which Iran-backed militias also made gains, the sources said.
The message centered on 58 members of parliament views by the US views as linked to Iran, all the sources said.
“The American line was basically that they would suspend engagement with the new government should any of those 58 MPs be represented in cabinet,” one of the Iraqi officials said. The formation of a new cabinet could still be months away due to wrangling to build a majority.
When asked to elaborate “they said it meant they wouldn’t deal with that government and would suspend dollar transfers,” the official said.
The US has had de facto control over oil revenue dollars from Iraq, a top OPEC producer, since it invaded the country in 2003. Iran has long supported an array of armed factions in Iraq. In recent years, several have entered the political arena, standing for election and winning seats as they seek a slice of Iraq’s oil wealth.
MARKZ & MILITIAMAN: Iraq Political Update: Sudani, Maliki, and the Real Dinar Fundamentals
Introduction: Political Theater vs Real Data
The Iraqi political scene has been full of headlines lately, with Maliki and Sudani dominating discussions. According to MarkZ via PDK:
“Sudani is not out of the picture…there is a lot of back and forth about Maliki… I think it’s all a show and we will see the return of Sudani.”
Iraq must vote on the President by the end of January 28th, and investors are watching closely. Yet, as Militia Manpoints out, political speculation is not the foundation for investment.
Why Dinar Holders Should Focus on Fundamentals
Militia Man emphasizes a data-driven approach:
“I’m looking for real data. I don’t go based off rumors, promises, or someone else’s opinion. I want to know the true fundamentals… They have reserves…oil…wealth…non-oil growth…Silica…Phosphates…Sulfur…about $16 trillion worth of assets…The data has never been any clearer…Iraq is executing…implementation…It’s happening.”
For holders, this perspective is critical. Political headlines create noise, but the underlying assets and infrastructure determine the Dinar’s long-term potential .
Sudani vs Maliki: What Investors Should Know
Current Political Dynamics
Maliki: Still prominent in headlines, but largely considered a “show” by insiders.
Sudani: Expected by insiders to return, which could stabilize political uncertainty.
Constitutional Deadlines: Iraq must vote for the President by January 28th, which could clarify leadership direction.
The key takeaway: elections and political maneuvering do not stop monetary reform or economic implementation.
Iraq’s Economic Power: Beyond Politics
Data reveals Iraq’s tremendous economic potential:
Reserves & Oil: Significant global energy reserves, critical for economic stability.
Non-Oil Growth: Industrial minerals like Silica, Phosphates, and Sulfur contribute to diversification.
Total Assets: Estimated around $16 trillion, indicating substantial financial and natural wealth.
“Iraq is executing…implementation…It’s happening.”
For Dinar holders, this means that the economy is structurally moving forward, independent of political drama.
Featured Snippet / Google Discover Highlight
“Despite political back-and-forth between Maliki and Sudani, Iraq’s $16 trillion in assets and execution of economic plans show strong fundamentals for Dinar investors. Political headlines are noise; data is reality.”
Q&A: Common Investor Questions
Q: Is Sudani still a contender for Prime Minister?
A: Yes. According to insiders, the back-and-forth over Maliki is largely a political show. Sudani is expected to return.
Q: Does political instability affect the Dinar’s revaluation?
A: Structural economic fundamentals, not daily politics, drive monetary reform.
Q: What are Iraq’s real economic strengths?
A: Oil reserves, non-oil minerals (Silica, Phosphates, Sulfur), financial reserves, and $16 trillion in total assets.
Q: Should investors rely on rumors or promises?
A: No. Decisions should be based on data, fundamentals, and implementation progress.
Final Thoughts: Data Over Drama
MarkZ and Militia Man’s insights remind holders:
“Ignore hype, ignore political drama. Focus on Iraq’s economic fundamentals and execution. Implementation is happening, and the Dinar’s future is grounded in real assets.”
Patience, research, and understanding the true fundamentals are key for long-term success.
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MarkZ [via PDK]
Question: is Sudani out of the picture for PM right now?
MarkZ: He is not out of the picture. But there is a lot of back and forth about Maliki right now. I think it's all a show and we will see the return of Sudani.
...Per their constitution they need to vote on the President by the end of day on Jan 28th…. So I believe the President will be sat tomorrow.
Militia Man
I'm looking for real data. What that data gave me is unshakable conviction in a study of the Iraqi dinar...I don't go based off rumors, not promises, not someone else's opinion. I want to know the true fundamentals...
They have reserves...oil...wealth...non-oil growth... Silica...Phosphates...Sulfur. You see about $16 trillion worth of assets they have...I don't do hype. I don't do dates and rate. I do what the data shows and the data has never been any clearer...Iraq is...executing...implementation ...It's happening.
$100 BILLION IN IRAQI SAVINGS REVEALED AT THE US FEDERAL RESERVE
$100 BILLION IN IRAQI SAVINGS REVEALED AT THE US FEDERAL RESERVE
Economic expert Duraid Al-Anzi said on Friday that Iraq should not have been exposed to any financial crisis or any form of financial distress, stressing that the concerned authorities did not adopt the proposed oil prices in the budgets, which led to the current financial situation.
Al-Anzi explained in a statement to Al-Furat News Agency that “Iraq has been objected to several times regarding not relying on high prices in budgets, and the necessity of not exceeding $65 per barrel in order to be able to save,” noting that “oil prices have changed a lot, but the competent authorities did not think about the future and did not adopt the proposed prices.”
He added that “Iraq is able to demand additional amounts from its savings held by the US Federal Reserve, as Iraq has savings in the US Federal Reserve exceeding $100 billion, which were transferred to JPMorgan,” explaining that “these funds belong to Iraq after 2003 and have accumulated, and the only beneficiary of them is JPMorgan, which gives simple interest rates, and it is not known whether they reach Iraq or not, and they have not been addressed, despite the amounts being doubled.”
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