The Trump administration has reportedly intensified economic pressure on Iraq to dismantle Iran-backed militias. U.S. officials warn Baghdad that failure to address these groups will further deteriorate bilateral relations and could weaken Iranian influence in the region.

A key measure involves a reported freeze on approximately $500 million in U.S. dollar shipments to Baghdad, tied to Iraqi oil revenue transactions managed through Federal Reserve Bank of New York accounts. This action is part of Washington’s strategy to leverage financial channels against Iraq for actions related to militia groups that have attacked U.S. personnel and facilities.

The Department of State has also announced a reward of up to $10 million for information leading to the arrest or detention of Haydar Muzhir Ma’lak al-Sa’idi, also known as Haydar al-Gharawi. Al-Gharawi serves as secretary general of Harakat Ansar Allah al-Awfiya, an Iran-aligned armed group designated as a Specially Designated Global Terrorist.

U.S. authorities accuse this group of attacking U.S. diplomatic facilities in Iraq and across multiple countries, including Jordan and Syria, and have claimed responsibility for the deaths of U.S. service members. The group operates under the umbrella of the Islamic Resistance in Iraq, an Iran-aligned coalition that has conducted hundreds of strikes on U.S. targets during the ongoing conflict with Iran.

This campaign targets a network of Iranian proxies. Previous bounties have been issued for leaders of groups such as Kataib Sayyid Al Shuhada and Kataib Hezbollah.

Iraq’s heavy dependence on oil revenue makes it particularly vulnerable to financial pressure tactics.