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The U.S. Treasury Department blocked a delivery of nearly $500 million in U.S. banknotes — proceeds from Iraqi oil sales held at the Federal Reserve Bank of New York — as Washington pressed Baghdad to dismantle Iran-backed militias operating in the country.

The U.S. Treasury Department blocked a delivery of nearly $500 million in U.S. banknotes — proceeds from Iraqi oil sales held at the Federal Reserve Bank of New York — as Washington pressed Baghdad to dismantle Iran-backed militias operating in the country.

Washington also informed Baghdad it is suspending funding for some counter-terrorism and military training programs until militia attacks cease and Iraqi authorities take steps against armed groups. State Department spokesperson Tommy Pigott said the U.S. "will not tolerate attacks on U.S. interests."

Washington also informed Baghdad it is suspending funding for some counter-terrorism and military training programs until militia attacks cease and Iraqi authorities take steps against armed groups. State Department spokesperson Tommy Pigott said the U.S. "will not tolerate attacks on U.S. interests."

The U.S. Treasury's Office of Foreign Assets Control placed seven leaders of Iran-aligned Iraqi armed groups on its sanctions list, holding them responsible for planning and carrying out attacks against U.S. personnel, facilities and interests in Iraq.

The U.S. Treasury's Office of Foreign Assets Control placed seven leaders of Iran-aligned Iraqi armed groups on its sanctions list, holding them responsible for planning and carrying out attacks against U.S. personnel, facilities and interests in Iraq.

Oil revenue accounts for nearly 95 percent of Iraq's federal budget, and every dollar Iraq earns from crude oil sales is deposited in an account at the Federal Reserve Bank of New York, from which Baghdad makes withdrawals to pay government salaries and fund imports.

Oil revenue accounts for nearly 95 percent of Iraq's federal budget, and every dollar Iraq earns from crude oil sales is deposited in an account at the Federal Reserve Bank of New York, from which Baghdad makes withdrawals to pay government salaries and fund imports.

Iraq's Shia Coordination Framework, the largest bloc in parliament with around 185 of 329 seats, named Bassem al-Badry as its prime ministerial nominee after former Premier Nouri al-Maliki's prospects faded following a U.S. threat to withdraw support if he returned to the post.

Iraq's Shia Coordination Framework, the largest bloc in parliament with around 185 of 329 seats, named Bassem al-Badry as its prime ministerial nominee after former Premier Nouri al-Maliki's prospects faded following a U.S. threat to withdraw support if he returned to the post.

The U.S. military conducted airstrikes targeting PMF headquarters in Iraq's Anbar province, killing at least 15 fighters including operations commander Saad al-Baiji, as Washington escalated pressure on Iran-aligned factions operating within Iraq's state security apparatus.

The U.S. military conducted airstrikes targeting PMF headquarters in Iraq's Anbar province, killing at least 15 fighters including operations commander Saad al-Baiji, as Washington escalated pressure on Iran-aligned factions operating within Iraq's state security apparatus.

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US Freezes $500M, Strikes Iraq Over Iran Militias

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