US officials have been pressuring Iraq to disarm Iran-backed armed factions, reported the Financial Times on Friday.
“In tense meetings with senior Iraqi political leaders tasked with forming the next government, US officials have in recent weeks also pushed the Iraqis to produce a ‘credible’ plan to rapidly disarm the groups,” it said.
Washington is exerting pressure on senior Iraqi politicians to form a government that excludes those factions, amid US President Donald Trump's efforts to curb Tehran's influence in Baghdad.
The newspaper quoted informed sources as saying that American officials threatened to take punitive measures if Baghdad did not do so, including economic measures, such as limiting dollar flows related to Iraqi oil sales.
Since 2003, under an arrangement after the American invasion of Iraq, Washington has been sending Baghdad cash shipments worth billions of dollars annually via monthly air freight flights, which are funds collected from Iraqi oil sales, the proceeds of which are deposited in the country's account with the Federal Reserve.
However, the United States has long been concerned that armed factions and Iran would use these funds. In 2015, Washington temporarily suspended dollar supplies to Baghdad amid concerns that they were flowing to Tehran and the ISIS extremist group.
The sources said that Iraqis fear instability and the outbreak of an economic crisis if Washington stops these supplies again.