Report Says US Blocked $500M Cash Shipment to Iraq Over Pro-Iran Attacks

An Iraqi man walks past shops in the Jamila food market in Sadr City, east Baghdad on April 13, 2026. (AFP)
An Iraqi man walks past shops in the Jamila food market in Sadr City, east Baghdad on April 13, 2026. (AFP)
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Report Says US Blocked $500M Cash Shipment to Iraq Over Pro-Iran Attacks

An Iraqi man walks past shops in the Jamila food market in Sadr City, east Baghdad on April 13, 2026. (AFP)
An Iraqi man walks past shops in the Jamila food market in Sadr City, east Baghdad on April 13, 2026. (AFP)

The United States blocked a plane carrying nearly $500 million in banknotes from delivering the cash to Iraq, US media reported on Tuesday, piling pressure on Baghdad to fight Iran-backed armed factions. 

The Wall Street Journal reported that Washington has suspended cash shipments to Iraq and frozen funding for security programs following attacks on US interests in the country by groups showing solidarity with Iran. 

Iraq has long walked a tightrope between the competing influences of its allies, neighboring Iran and the United States. 

However, Iraqi leaders have struggled to maintain that delicate balance as war engulfs the Middle East. 

The US State Department said this month it had summoned Iraq's ambassador to Washington to express "strong condemnation" of attacks by pro-Iran groups on US interests, "including the April 8 ambush of US diplomats in Baghdad". 

The Wall Street Journal reported that the US Treasury Department blocked a shipment of nearly $500 million in cash from Iraqi oil sales, quoting US and Iraqi officials. 

AFP has contacted the Treasury Department for comment. 

The United States has leverage over Iraq because the country's oil export revenue is largely held at the Federal Reserve Bank in New York, under an arrangement reached after the 2003 US invasion that toppled Saddam Hussein. 

The Wall Street Journal quoted unidentified US officials as saying that the suspension on cash shipments was temporary. 

The Central Bank of Iraq has not commented specifically about the reports. 

However, it said on Tuesday it was not lacking US dollars and that it had "fulfilled all requests from banks and exchange companies for US dollars, which are intended for pilgrims, travelers and foreign transfers." 

The funding freeze to security programs includes training for Iraq's army and counterterror efforts against the ISIS group, The New York Times reported. 



UN Rights Chief Calls on Israel to Abolish Oct 7 Military Tribunal

FILED - 07 October 2023, Palestinian Territories, Khan Yunis: Palestinians take control of an Israeli tank after crossing the border fence with Israel from Khan Yunis. Photo: Abed Rahim Khatib/dpa
FILED - 07 October 2023, Palestinian Territories, Khan Yunis: Palestinians take control of an Israeli tank after crossing the border fence with Israel from Khan Yunis. Photo: Abed Rahim Khatib/dpa
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UN Rights Chief Calls on Israel to Abolish Oct 7 Military Tribunal

FILED - 07 October 2023, Palestinian Territories, Khan Yunis: Palestinians take control of an Israeli tank after crossing the border fence with Israel from Khan Yunis. Photo: Abed Rahim Khatib/dpa
FILED - 07 October 2023, Palestinian Territories, Khan Yunis: Palestinians take control of an Israeli tank after crossing the border fence with Israel from Khan Yunis. Photo: Abed Rahim Khatib/dpa

The United Nations rights chief on Wednesday called on Israel to repeal a newly established special military tribunal to try Palestinian militants accused of taking part in Hamas's October 7 attacks.

Israel's parliament passed a law establishing the tribunal, with the authority to hand down the death penalty, late on Monday.

The special court is set to try attackers captured during or after the Hamas-led onslaught. It will also try those suspected of holding or abusing hostages in Gaza.

According to Israeli media, around 400 suspects are expected to stand trial before the court.

"There must be full accountability for these horrific attacks, but this cannot be achieved through trials that fall short of international standards," Volker Turk, the UN High Commissioner for Human Rights, said in a statement, AFP reported.

"This law must be overturned," he said.

"This law will inevitably institutionalize one-sided justice and discrimination against Palestinians, which cannot be in anyone's interest and runs counter to international human rights law," he said.

Hamas's attack resulted in the deaths of 1,221 people on the Israeli side, the majority of them civilians, according to an AFP tally based on official data, making it the deadliest day in Israel's history.

Militants also took 251 people hostage, including 44 who were already dead.

Israel's retaliatory military campaign has devastated the Gaza Strip and killed more than 72,000 people, according to the health ministry in the Hamas-run territory, whose figures are considered reliable by the UN.


Gaza Envoy Says Hamas Not Asked to 'Disappear as a Political Movement' but Must Disarm

A still from a video published by Hamas's military media showing an Al-Qassam Brigades fighter during the October 7, 2023 attack (Reuters)
A still from a video published by Hamas's military media showing an Al-Qassam Brigades fighter during the October 7, 2023 attack (Reuters)
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Gaza Envoy Says Hamas Not Asked to 'Disappear as a Political Movement' but Must Disarm

A still from a video published by Hamas's military media showing an Al-Qassam Brigades fighter during the October 7, 2023 attack (Reuters)
A still from a video published by Hamas's military media showing an Al-Qassam Brigades fighter during the October 7, 2023 attack (Reuters)

The Board of Peace's high representative for Gaza on Wednesday said Hamas may remain as a political force on the condition that it lays down its weapons.

"We are asking the political leadership of those who govern Gaza now to step aside. This is required by the Security Council resolution in the 20-point plan," said Nickolay Mladenov during a press conference in Jerusalem, referring to the peace plan for the territory, AFP reported.

"We are not asking Hamas to disappear as a political movement. A political party that disavows armed activity can compete in national Palestinian elections. What is not negotiable, however, is that armed factions or militias... can exist alongside a transitional Palestinian authority," he said.


Formation of Lebanese-Syrian Higher Business Council to Revive Economic Relations

Syrian President Ahmed al-Sharaa and Lebanese Prime Minister Nawaf Salam in Damascus (Lebanese Prime Minister’s Office)
Syrian President Ahmed al-Sharaa and Lebanese Prime Minister Nawaf Salam in Damascus (Lebanese Prime Minister’s Office)
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Formation of Lebanese-Syrian Higher Business Council to Revive Economic Relations

Syrian President Ahmed al-Sharaa and Lebanese Prime Minister Nawaf Salam in Damascus (Lebanese Prime Minister’s Office)
Syrian President Ahmed al-Sharaa and Lebanese Prime Minister Nawaf Salam in Damascus (Lebanese Prime Minister’s Office)

Lebanon and Syria are expected in the coming weeks to translate the agreements and understandings reached during the recent visit of the Lebanese prime minister to Damascus into a series of measures and decisions to be issued successively, underscoring a clear decision by both states to move their relationship to a new level of cooperation and coordination after years of a strained relationship that negatively affected both sides.

Among the most prominent steps already under way is the formation of the “Lebanese-Syrian Higher Business Council,” aimed at revitalizing economic and trade relations between the two countries and involving the private sector.

Economy and Trade Minister Amer Bisat explained that “talks on establishing this council began some time ago, and it was agreed that its first meeting would be held at the end of June.” He noted that “it will comprise representatives from the private sector, while the Economy Ministry will oversee it, support and monitor its work, help set its agenda, and provide guidance.”

Bisat stressed to Asharq Al-Awsat the “importance of Lebanese-Syrian relations given that the two countries are bound by geography and history, and therefore advancing these relations is a strategic objective for our government.”

He added: “Institutional economic relations with Syria require modernization, or even a rebuild from scratch. It can now be said that matters have been placed on the right track, and we have embarked on a path that may be long.”

Bisat said the Syrian state had met Lebanon’s desire to improve bilateral relations with “welcome, commitment, and positive will,” explaining that “both sides are convinced that Syria’s success is part of Lebanon’s success, and vice versa, and that the relations being built today are based on shared interests, new and healthy foundations, and mutual respect.”

Abolishing the Higher Council

In October 2025, Syria announced the suspension of the Lebanese-Syrian Higher Council, a body established under the “Treaty of Brotherhood, Cooperation and Coordination” between Lebanon and Syria, signed in 1991. The treaty marked “a major turning point” in relations between the two countries, as it entrenched “Syrian tutelage” over Lebanon, which continued until the withdrawal of Syrian troops in 2005.

According to an official Lebanese source, the treaty and the council “are effectively no longer in existence, although legal steps are still expected to be taken in this regard.”

Professor Maroun Khater, a writer and researcher in financial and economic affairs, said that “talk of establishing a new higher business council between Lebanon and Syria goes beyond the technical economic dimension to reopening the broader question of the nature of bilateral relations themselves.”

He noted that “Lebanon’s experience with the Lebanese-Syrian Higher Council, which emerged under the Brotherhood, Cooperation and Coordination Agreement signed in 1991, remained highly controversial in Lebanon because of the major imbalance in power relations and the political and security overlap that, in most cases, undermined the concept of a normal relationship between two independent states.”

“Based on that,” he added, “no new economic or institutional framework can succeed unless it begins with a deep critical review of the experience of those agreements and the flaws that accompanied their implementation.”

He continued: “Any attempt to conclude new agreements or establish modern frameworks for cooperation will remain incomplete unless the issue of revoking and abolishing the Brotherhood, Cooperation and Coordination Agreement in its current form, which is unfair to Lebanon, is clearly addressed.”

Organizing Economic Relations

Khater stressed to Asharq Al-Awsat that “the need to organize economic relations between the two countries is realistic and necessary given geography and the deep strategic economic interconnection.”

He explained that “higher business councils are usually established to provide a permanent institutional platform for dialogue between the public and private sectors and to follow up on issues related to trade, investment, energy, transport, border crossings, and customs coordination, in addition to removing obstacles to the movement of goods and capital.”

As for the outstanding economic issues between the two countries, Khater said they are “numerous and accumulated, foremost among them the smuggling of weapons, goods, and money, as well as illicit trade through illegal crossings and tunnels, which has drained the Lebanese economy for decades.”

He added that the issue of overland transit, which represents a vital artery for Lebanese exports to the Gulf, also remains key.

“Energy, and the imports of gas and electricity through Syrian territory, also stands out, in addition to customs cooperation, fees, and financial coordination, which has become complicated and opaque following the international sanctions previously imposed on Syria,” he said.

“Among the most prominent issues are the exchange of security information and the issue of Syrian refugees, which remains one of the most sensitive matters given the heavy economic, social, and financial repercussions it has imposed on Lebanon,” he added.