Iraq Agrees to Curb Dollar Flows to Iran-Backed Militias

Iraq has agreed to tighten financial controls, a move designed to stop U.S. dollars from flowing to Iran and its allied militias. This agreement comes as the Trump administration is set to resume certain financial transactions with Baghdad.

The tightened controls are intended to curb the illicit movement of currency, a key concern for the United States in its efforts to pressure Iran. By restricting dollar access, Washington aims to limit the financial resources available to Tehran and the proxy groups it supports in the region.

This development signals a shift in financial diplomacy between the U.S. and Iraq, with Baghdad appearing to concede to American demands regarding financial oversight. The resumption of transactions by the Trump administration suggests a conditional easing of sanctions or financial restrictions, contingent on Iraq's compliance with the new measures.