Trump admin warns Iraq over Iran terror proxies as US reportedly blocks cash payments

The Trump management has reportedly ramped up its punitive measures to compel Iraq to disband Iranian regime-backed militias known arsenic nan Popular Mobilization Force (PMF) that shape portion of its authorities aft sustained attacks connected U.S. unit and facilities.

Amid a tenuous ceasefire betwixt nan U.S. and nan Islamic Republic of Iran, nan management tightened nan screws connected Iraq by stopping U.S. dollar shipments to Baghdad. The increasing disagreements complete argumentation betwixt nan U.S. and Iraq could lead to weakening Iran’s beingness successful nan region and beforehand U.S. warfare intends against Tehran.

In a connection against Iraq’s government, a State Department spokesperson told Fox News Digital, "The United States has consistently been clear we will return each measures to antagonistic Iran’s destabilizing activities successful Iraq, protect U.S. interests against Iran-aligned violent militias successful Iraq, and make clear our concerns astir nan Iraqi government’s nonaccomplishment to forestall this terrorism."

US WARNS IRAQ MUST ACT AGAINST IRAN-BACKED MILITIA ATTACKS ON AMERICAN ASSETS

An detonation occurred adjacent nan U.S. Consulate and Erbil International Airport, wherever a U.S. subject guidelines is located, successful Erbil, Iraq, connected March 12, 2026, causing occurrence and heavy fume to emergence pursuing nan blast. (Ahsan Mohammed Ahmed Ahmed/Anadolu)

The spokesperson added that "While we admit nan efforts of Iraqi Security Forces to respond to violent attacks by Iran-aligned militia groups, we proceed to stress that nan Iraqi government’s nonaccomplishment to forestall these attacks while immoderate elements associated pinch nan Iraqi authorities proceed to actively supply political, financial, and operational screen for nan militias adversely impacts nan U.S.-Iraq relationship. The United States will not tolerate attacks connected U.S. interests and expects nan Iraqi authorities to instantly return each measures to dismantle nan Iran-aligned militia groups successful Iraq."

The Wall Street Journal first reported past week astir nan information and financial penalties imposed connected Iraq. According to nan report, nan U.S. halted information practice programs pinch Iraq’s subject and stopped "a cargo-plane transportation of astir $500 cardinal successful U.S. banknotes, nan proceeds from Iraqi lipid income from Federal Reserve Bank of New York accounts."  

The newspaper said it was nan 2nd blocked transportation of dollars to nan Central Bank of Iraq since nan commencement of nan U.S.-Israel warfare connected Feb. 28 against Iran. 

The Treasury Department declined to remark connected nan blocked payments.

Iraqi information forces guidelines defender during a funerary convoy successful Baghdad connected March 8, 2026, for a slain personnel of nan Popular Mobilisation Forces killed successful a U.S.-Israeli airstrike successful Mosul nan erstwhile evening. (Ahmad Al-Rubaye/AFP)

An Iraqi charismatic told Fox News Digital that "With respect to relations pinch nan United States, Iraq views them arsenic an important business based connected shared interests and cooperation. The 2 sides person fought together successful a decisive conflict against ISIS, reflecting nan extent and value of this relationship."

In reference to nan pro-Iran militias, nan Iraqi charismatic said, "As for nan rumor of equipped factions, it is important to statement that nan Iraqi reality is highly complex, pinch overlapping political, information and societal dimensions. Some of these factions besides person governmental and celebrated influence. Accordingly, addressing this rumor requires observant and gradual approaches grounded successful a heavy knowing of nan home context, successful a measurement that strengthens authorities authority and ensures that weapons are confined to nan hands of nan authorities while maintaining soul stability."

TRUMP THREATENS TO END IRAQ SUPPORT OVER AL-MALIKI COMEBACK BID TIED TO IRAN INFLUENCE

A advertisement featuring a photograph of Iran’s ultimate leader Ali Khamenei is seen on a thoroughfare successful Baghdad connected March 9, 2026. (Murtadha Al-Sudani/Anadolu)

The charismatic added that "External measures that neglect to return into relationship nan particularities of this reality whitethorn lead to counterproductive outcomes and negatively impact soul balances, which would not service nan stableness efforts undertaken by Iraq and its partners, foremost among them Washington."

The PMF is an umbrella statement of militias mostly loyal to nan Islamic Republic of Iran — nan world’s worst state-sponsor of terrorism, according to nan State Department. Members of nan PMF person launched attacks connected U.S. assets successful Iraqi Kurdistan and against Iraqi Kurds — a valuable U.S. state successful nan Mideast.

A elder Kurdish charismatic told Fox News Digital, "The dollar region is portion of nan atomic action successful nan Treasury Department, and nan Americans person ever been reluctant to leverage it. The Iraqis, meanwhile, person been sadistic to their partners — Americans and nan KRG [Kurdish Regional Government], arsenic this warfare has shown — and now Washington is drafting a reddish line."

The Kurdish charismatic said, "They’ve made it clear things will only get worse for Iraq if militias resume attacks against U.S. interests, including successful nan Kurdistan Region. It’s precocious clip nan Americans pulled this lever; for excessively long, it has allowed Iran to prime a premier and dictate nan rules, contempt repeated encouragement to veto Iran’s cut-outs successful Iraq."

Both Iraqi and Kurdish officials said nan authorities is successful flux arsenic nan differnt sides position themselves to prime a caller Iraqi premier minister.

IRAQI STATE BANK ACCUSED OF PROCESSING PAYMENTS FOR HOUTHI TERRORISTS WHO DISRUPT RED SEA COMMERCE

Smoke rises from nan U.S. embassy building successful Baghdad, Iraq, connected March 14, 2026, pursuing an onslaught connected nan negotiated mission. (Ali Jabar/AP)

The Trump management opposes nan return of erstwhile Iraqi Prime Minister Nouri al-Maliki because of his adjacent ties to Iran. 

The Kurdish charismatic stressed nan domiciled of nan mostly Shiite organization successful Iran: "In nan end, though, it’s still nan Shia location that chooses nan premiership. They person immoderate latitude, but ultimately, they will prime a campaigner acceptable to some Iran and nan United States. That’s nan crippled — and America has ever reacted to Iran’s game. This time, however, Washington appears intent connected influencing nan result alternatively than conscionable watching it."

The charismatic added, "This matters particularly because Iraq depends connected oil, and its proceeds are deposited successful nan U.S. Federal Reserve and American banks. How Washington behaves vis-à-vis those deposits influences nan process and reconfigures nan equilibrium wrong nan Shia house. It matters enormously."

Entifadh Qanbar, a erstwhile spokesperson for nan lawman premier curate of Iraq, warned that location is simply a pressing request for nan Iraqi Prime Minister Mohammed Shia' al-Sudan to swiftly dismantle nan PMF because they correspond a clear and coming threat to nan U.S. Embassy successful Baghdad.

Iraqi Shiite men clasp pictures of Iranian Supreme Leader Ayatollah Ali Khamenei during a symbolic ceremonial successful Najaf, Iraq, connected March 1, 2026. (Anmar Khalil/AP)

He told Fox News Digital, The Iraqi authorities besides provides these groups pinch authorities recognition cards, vehicles, and charismatic authorities licence plates nether nan screen of nan PMF structure. This allows them to participate Baghdad’s high-security Green Zone astatine will and frighten nan U.S. Embassy aliases immoderate Iraqi authorities institution."

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To underscore nan dangers of nan PMF, nan U.S. Department of Justice announced connected Monday a $10 cardinal bounty connected nan violent leader of nan pro-Iranian militia Harakat Ansar Allah al-Awfiya (HAAA).
 

The U.S. embassy connected Monday wrote on X that nan pro-Iran militia "Harakat Ansar Allah al-Awfiya (HAAA) terrorists person launched attacks crossed Iraq and nan region, including nan April 8 ambush of U.S. diplomats adjacent nan Baghdad International Airport.  HAAA terrorists proceed to undermine Iraqi sovereignty while threatening nan information and information of some Iraqi and U.S. civilians.  We will not tolerate attacks connected U.S. interests and expect each measures will beryllium taken to dismantle Iran-aligned violent militia groups successful Iraq."