🇺🇸🇮🇶 US weaponizes petrodollar to pressure Iraq

The US has threatened senior Iraqi officials with sanctions and a pledge to “starve” Baghdad of petrodollars if it includes a batch of newly-elected, militia-linked MPs in its next government.

Sources told Reuters Washington has been repeating the threat since November, when Iraq held parliamentary elections, with the message delivered to Prime Minister Sudani and Shia leaders.

💲 The US says if any of the 58 MPs it says are tied to ‘Iran-linked militias’ are included in the new cabinet, the NY Fed will cut the flow of dollars to Iraq’s Central Bank.

No bloc won an outright majority in November’s vote, leaving Iraq facing weeks of difficult coalition talks.

The “Iran-linked militias” the US is referring to are the Popular Mobilization Forces, predominantly Shia forces trained and supported by the IRGC’s Quds Force.

The PMF played an instrumental role in expelling ISIS from Iraq between 2015-2017, constituting the backbone of the ground campaign.

🥴 US threats put Iraq’s government in a bind.

On one hand, bowing to the pressure would signal a humiliating and demoralizing loss of sovereignty.

On the other, the last time Iraq ditched the dollar in 2001-2002, the US invaded shortly after.

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