US, in control of oil dollars, heaps pressure on Iraq over Iranian influence

Fighters from the Popular Mobilization Forces attend the funeral of a commander from the Kataib Hezbollah paramilitary group killed in a US airstrike, in Baghdad, Iraq on February 8, 2024. (AP/Hadi Mizban, File)
Fighters from the Popular Mobilization Forces attend the funeral of a commander from the Kataib Hezbollah paramilitary group killed in a US airstrike, in Baghdad, Iraq on February 8, 2024. (AP/Hadi Mizban, File)

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 tell Reuters.

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