The Trump administration is intensifying pressure on Iraq over Iran-backed militias, delivering an explicit warning to Baghdad: dismantle groups targeting U.S. interests or face deteriorating bilateral relations. This escalation includes a reported freeze on U.S. dollar shipments to the Iraqi capital—a move that directly impacts Baghdad’s financial system, which relies heavily on oil revenue.
U.S. officials have confirmed Washington halted a cargo-plane delivery of nearly $500 million in U.S. banknotes tied to Iraqi oil-sale proceeds held through New York Federal Reserve accounts. This action marks the second such block since the onset of the U.S.-Israel conflict with Iran. The administration warns that Iraq must halt militia attacks; failure could weaken Iranian influence within Baghdad’s security framework and further damage U.S.-Iraq ties.
The Department of State has announced a $10 million reward for information leading to Haydar Muzhir Ma’lak al-Sa’idi, also known as Haydar al-Gharawi. Al-Gharawi serves as secretary general of Harakat Ansar Allah al-Awfiya, an Iran-aligned armed group based in Iraq. U.S. authorities accuse this group of attacking U.S. diplomatic facilities, military bases, and personnel across Iraq, Jordan, and Syria, including the killing of American service members.
The group operates under the Islamic Resistance in Iraq umbrella—a coalition designated as Specially Designated Global Terrorists for its role in claiming hundreds of strikes on U.S. targets during the 2026 U.S.-Israeli conflict with Iran. The reward follows earlier bounties targeting leaders of other Iranian-aligned groups, such as Kataib Sayyid Al Shuhada and Kataib Hezbollah, signaling a coordinated campaign against militia networks within Iraq’s security ecosystem.
The U.S. Embassy confirmed attacks by these factions, including an April 8 ambush near Baghdad International Airport that targeted U.S. diplomats. This pressure reflects a critical shift: Iraq has long struggled to balance its partnership with the United States against entrenched Iranian proxy influence. With Trump administration warnings now explicitly linking U.S. diplomatic and military safety to Baghdad’s actions, the financial leverage imposed through dollar shipments represents an unprecedented test of the Iraqi government’s ability to address militia threats without triggering further escalation.
