United States Resumes Cash Shipments to Iraq Amid Militia Restrictions

The United States has restarted cash shipments to Iraq after a several‑month suspension. Under a post‑2003 agreement, most of Iraq’s oil revenues are held in accounts at the Federal Reserve Bank in New York and are used to pay for imports or transferred as cash to Iraq. The pause, imposed in April, was intended to pressure Baghdad to halt the flow of dollars to Iranian‑backed militias that have carried out attacks on U.S. facilities.

Baghdad has now accepted new financial controls that aim to prevent dollar leakage to those militias, a condition linked to the resumption of shipments and to Prime Minister Ali Zaydi’s upcoming visit to Washington. Iraqi officials say the restart signals stronger economic partnership with the United States and supports Zaydi’s push for militia disarmament and reduced Iranian influence.

The move is presented as a positive step in U.S.–Iraq cooperation ahead of the prime minister’s diplomatic tour.