U.S. Wields Oil Revenue Control in Iraq to Curb Iran Influence

The U.S. is leveraging its control over Iraq's oil revenue to pressure Iraqi politicians to exclude Iran-backed armed groups from the new government. This move is part of a broader strategy to diminish Iran's influence in Iraq, a country crucial to Iran's economy amidst sanctions.


Devdiscourse News Desk | Updated: 23-01-2026 21:00 IST | Created: 23-01-2026 21:00 IST
U.S. Wields Oil Revenue Control in Iraq to Curb Iran Influence
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In a strategic move to curb Iran's influence in Iraq, the United States is exerting pressure on Iraqi politicians to eliminate Iran-backed armed groups from the nation's upcoming government. This effort is backed by Washington's control over Iraq's critical oil revenue, a dominance established since the 2003 invasion.

The U.S., aiming to restrict Iran-linked groups' presence in Iraqi politics, has threatened punitive measures that could impact Iraq's oil-driven economy. As a top OPEC producer, Iraq's economic stability largely hinges on the continuous flow of U.S. dollars, a leverage point Washington is using to its advantage.

This diplomatic maneuvering reflects a broader agenda to ensure Iraq maintains sovereignty while minimizing Tehran's regional sway. Sources indicate ongoing dialogue between the U.S. and key Iraqi leaders, with the outcome potentially reshaping Iraq's political landscape and financial strategies.

(With inputs from agencies.)

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