US President Donald Trump's administration has ​halted U.S. dollar shipments to ‌Iraq and frozen security cooperation ​programs with its military, ⁠as it presses Baghdad to dismantle Iranian-backed militias operating in the country, ‌the Wall Street Journal reported on Tuesday, citing Iraqi ‌and U.S. officials.

US Treasury ‌Department ⁠officials recently blocked a delivery ⁠of nearly $500 million in US banknotes - the proceeds of Iraqi oil sales - ​from accounts ‌at the Federal Reserve Bank of New York, the Journal said.

The US Treasury ​Department and the Federal Reserve did not immediately respond ⁠to a request for comment.

Washington has also informed Baghdad ‌it is suspending funding for some counter-terrorism and military training programs until militia attacks end and Iraqi authorities take steps to dismantle armed groups, the ‌report added.

The United States earlier ​this month summoned Iraq’s ambassador after a drone struck ⁠a major U.S. diplomatic facility in Baghdad, ⁠following a series of drone attacks that ‌Washington has blamed on Iran-aligned “terrorist militias."

Published on April 22, 2026