The United States has halted a shipment of approximately $500 million in cash destined for Iraq. These funds, which originate from Iraq's oil revenues, are critical to the country's cash-based economy.
In addition to halting the dollar shipments, the Trump administration has suspended parts of its security cooperation with Baghdad. This move is part of an escalating pressure campaign against the Iraqi government.
The actions are aimed at forcing Baghdad to distance itself from Iran. Specifically, the United States is pressuring the Iraqi government over the actions of Iran-backed militias and demanding that they be dismantled.