Washington's Leverage: Iraq's Oil Revenues and Iran's Influence

The United States warns Iraqi politicians against involving Iran-linked groups in their government. Facing potential sanctions affecting Iraq's vital oil revenue, Iraqi leaders are pressured to distance themselves from such factions. The U.S. has historically managed Iraq's oil revenue, using its sway to curb Iran's regional influence.

In a high-stakes diplomatic maneuver, the United States is urging Iraqi politicians to exclude Iran-backed factions from their government, potentially leveraging economic sanctions as a deterrent. Sources report the U.S. retains significant control over Iraq's substantial oil revenues through the Federal Reserve Bank of New York.

The diplomatic exchanges, spearheaded by U.S. Charge d'Affaires Joshua Harris, surfaced amidst ongoing geopolitical tensions. Harris communicated these warnings to top Iraqi officials, reiterating Washington's stance against engaging with government officials linked to Iran-supported militias.

As Iraq navigates political formation post-election, the threat of curtailed oil revenue flows underscores the significant influence Washington wields. The situation could reframe U.S.-Iraq dynamics while simultaneously impacting Iran's strategic foothold in the region.

(With inputs from agencies.)