Unraveling the U.S. Grip: The Complex Saga of Iraq's Oil Revenues

Since the 2003 invasion, the U.S. has maintained control over Iraq's oil revenue via the Federal Reserve Bank of New York, impacting Iraq's economy and politics. This relationship, despite allowing Iraqi autonomy, continues to anchor financial stability in Iraq, shaping its interactions with regional actors like Iran.

The United States has maintained significant influence over Iraq's oil revenues since the 2003 invasion, using this leverage to impact not only Iraq's economic stability but also its political landscape. The Federal Reserve Bank of New York manages these revenues, ensuring Washington's enduring grip on Baghdad's financial affairs.

Through mechanisms set up by the Coalition Provisional Authority, Iraq's oil income, largely hosted at the Federal Reserve, has become crucial for Iraq's reconstruction. These arrangements allow the U.S. to exert significant pressure, even threatening to cut off funds when political tensions arise, such as when Iraq sought the U.S. military's withdrawal in 2020.

This enduring financial arrangement has both bolstered confidence in the Iraqi economy and posed challenges, such as fostering a parallel dollar market. Despite the Iraqi government's efforts to assert financial sovereignty, U.S. control remains pivotal, especially concerning its standoff with Iran, reflecting the complex geopolitical web at play.

(With inputs from agencies.)