The Trump administration has intensified pressure on Iraq to dismantle Iranian regime backed militias known as the Popular Mobilization Forces following repeated attacks on American personnel and facilities. Senior defense officials addressed the issue after six American service members were killed in western Iraq, underscoring Washington’s warning that it will take all necessary measures to counter Iran’s influence and protect its interests.

As part of the escalation, the United States halted security cooperation programs and blocked nearly 500 million dollars in cash shipments derived from Iraqi oil revenues held in American financial institutions. The move marks the second time dollar transfers to Iraq’s central bank have been stopped since the recent conflict involving Iran began, signaling growing frustration with Baghdad’s handling of militia activity.

Iraqi officials described the relationship with Washington as an important partnership but cautioned that dismantling the militias requires a gradual approach due to their political and social influence. Kurdish officials, however, characterized the financial pressure as a decisive step, arguing it could shift Iraq’s internal political balance and curb Tehran’s sway over the selection of the country’s next prime minister.

The United States has also taken direct action against militia leaders, including offering a multimillion dollar reward for information on a commander accused of orchestrating attacks on American diplomats. Washington maintains that it will not tolerate further assaults and expects Iraq’s government to fully dismantle armed groups aligned with Iran.