U.S. Restarts Dollar Transfers to Iraq After Months-Long Halt

The United States had stopped sending dollar transfers to Iraq for several months. The suspension was imposed by the Trump The United States had stopped sending dollar transfers to Iraq for several months. The suspension was imposed by the Trump

administration. It was intended to pressure Baghdad to reduce Iranian influence. Officials said the pause was part of a broader diplomatic strategy. In early 2024 the policy was reversed and transfers resumed. The restart restores a key financial channel for Iraq’s economy.

Analysts expect the move to ease trade and aid reconstruction efforts. Observers will watch how Iraq responds to the renewed U.S. financial support.