US Seizes Iraqi Oil Revenue, Citing Iran Links
Zoom out for a second: The United States has once again frozen a significant portion of Iraq's oil revenue, held in a Federal Reserve account, citing persistent concerns about Baghdad's financial dealings with Iran. The New York Times reported US Treasury officials initiated the hold on a recent multi-billion-dollar shipment of US dollars destined for Iraq, asserting that some funds could
indirectly benefit Iranian entities through opaque financial channels. This action, taken just as Iraq sought to stabilize its post-conflict economy, targets the very lifeblood of its national budget. This current move aligns with a longstanding pattern of US economic pressure. In December 2022, the US Federal Reserve imposed stricter controls on Iraqi dollar transactions, drastically reducing the
number of banks allowed to access dollars through its system. This earlier squeeze was also justified by claims of illicit money transfers to Iran and Syria, despite Baghdad's assurances of compliance. The consistent application of these financial chokeholds reveals a narrative divergence: while the US presents these actions as anti-corruption and counter-terrorism measures, Iraqi officials often
view them as an infringement on their economic autonomy, particularly given their reliance on oil sales for 90% of state revenue. The US rationale consistently omits the history of Iraqi-Iranian economic interdependence that predates and follows the 2003 US invasion. Iran is Iraq's largest non-oil trading partner, with annual trade exceeding $12 billion, encompassing vital electricity, natural