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US Threatens to Starve Iraq of Its Oil Dollars Over Iranian Influence, Sources Say
A general view shows al-Firdous Square in Baghdad, Iraq, July 27, 2022. Photo: REUTERS/Ahmed Saad
Washington has threatened senior Iraqi politicians with sanctions targeting the Iraqi state – including potentially its critical oil revenues – should armed groups backed by Iran be included in the next government, four sources told Reuters.
The warning is the starkest example yet of US President Donald Trump’s campaign to curb Iran-linked groups’ influence in Iraq, which has long walked a tightrope between its two closest allies, Washington and Tehran.
The US warning was delivered repeatedly over the past two months by the US Charge d’Affaires in Baghdad, Joshua Harris, in conversations with Iraqi officials and influential Shi’ite leaders, according to three Iraqi officials and one source familiar with the matter who spoke to Reuters for this story. The message was delivered to some heads of Iran-linked groups via intermediaries, they said.
Harris and the embassy did not respond to requests for comment. The sources requested anonymity to discuss private discussions.
Since taking office a year ago, Trump has acted to weaken the Iranian government, including via its neighbor Iraq.
Iran views Iraq as vital for keeping its economy afloat amidst sanctions and long used Baghdad’s banking system to skirt the restrictions, US and Iraqi officials have said. Successive US administrations have sought to choke that dollar stream, placing sanctions on more than a dozen Iraqi banks in recent years in an effort to do so.
But Washington has never curtailed the flow of dollars from the oil revenues of Iraq, a top OPEC producer, sent via the Federal Reserve Bank of New York to the Central Bank of Iraq. The US has had de facto control over Iraq’s oil revenue since it invaded the country in 2003.
Iraqi Prime Minister Mohammed Shia al-Sudani’s office, the Central Bank of Iraq, and Iran‘s mission at the United Nations did not respond to requests for comment.
“The United States supports Iraqi sovereignty, and the sovereignty of every country in the region. That leaves absolutely no role for Iran-backed militias that pursue malign interests, cause sectarian division, and spread terrorism across the region,” a US State Department spokesperson told Reuters, in response to a request for comment.
The spokesperson did not answer Reuters questions about the sanction threats.
Trump, who bombed Iran‘s nuclear facilities in June, threatened to again intervene militarily in the country during protests last week.
NO ARMED GROUPS IN NEW GOVERNMENT
Among the senior politicians to whom Harris’ message was passed were Prime Minister Sudani, Shi’ite politicians Ammar Hakim and Hadi Al Ameri, and Kurdish leader Masrour Barzani, three of the sources said.
The conversations with Harris started after Iraq held elections in November in which Sudani’s political bloc won the single-largest bloc of seats but in which Iran-backed militias also made gains, the sources said.
The message centered on 58 members of parliament views by the US views as linked to Iran, all the sources said.
“The American line was basically that they would suspend engagement with the new government should any of those 58 MPs be represented in cabinet,” one of the Iraqi officials said. The formation of a new cabinet could still be months away due to wrangling to build a majority.
When asked to elaborate “they said it meant they wouldn’t deal with that government and would suspend dollar transfers,” the official said.
The US has had de facto control over oil revenue dollars from Iraq, a top OPEC producer, since it invaded the country in 2003.
Iran has long supported an array of armed factions in Iraq. In recent years, several have entered the political arena, standing for election and winning seats as they seek a slice of Iraq’s oil wealth.
Renad Mansour, director of the Iraq Initiative at London’s Chatham House think tank, said armed groups were increasingly benefiting from positions in Iraq’s massive bureaucracy and so took the threat of cutting dollar flows seriously.
“The US has significant leverage,” he said. “The threat of the loss of access to US dollars, which is how Iraq’s economy functions through the sale of oil, has made it very concerning.”
WASHINGTON OPPOSES FIRST DEPUTY SPEAKER
One of the people Washington objects to is Adnan Faihan, a member of the powerful, Iran-backed political and armed group Asaib Ahl al-Haq (AAH), who was elected first deputy speaker of parliament in late December, the Iraqi official and the source with knowledge of the matter said.
They said the US opposed Faihan’s appointment to the post.
In a sign the pressure campaign was working, AAH leader Qais al-Khazali communicated a willingness to the Americans to remove Faihan as deputy speaker, the Iraqi official said. Faihan currently remains in his position.
The AAH media office and Faihan did not immediately respond to a request for comment and neither did Faihan.
In the last government, AAH held the education ministry, and Iraqi officials say it is seeking to participate in the next government too.
AAH was a key group in a sophisticated oil smuggling network generating at least a $1 billion a year for Iran and its proxies in Iraq, sources previously told Reuters.
Khazali was sanctioned by Washington in 2019 for AAH’s alleged role in serious human rights abuses, related to the killing of protesters in Iraq that year and other violence, including a 2007 attack that killed five US soldiers. At the time, he dismissed the sanctions as unserious.
DOLLAR CONTROL
Iraq holds the bulk of proceeds from its oil export sales at a Central Bank of Iraq account at the Federal Reserve Bank of New York.
Though it is a sovereign account of the Iraqi state, the arrangement gives the US practical control over a critical choke point of Iraqi state revenues, making Baghdad reliant on Washington’s goodwill.
“US efforts to achieve stability in the region are focused on ensuring states retain their sovereignty and can achieve security through mutual economic prosperity,” the State Department spokesperson said in their reply to Reuters questions.
The move to pressure Baghdad with a possible suspension of dollars takes place as the US begins marketing Venezuelan oil, which followed the capture of Venezuelan leader Nicolas Maduro in Caracas by US forces and his transfer to New York to be put on trial in relation to drug charges.
The US Department of Energy has said all proceeds from Venezuelan oil sales would be initially settled in US-controlled accounts at globally recognized banks.
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50 years after the Dirty War, Argentinians remember the Jews who ‘disappeared’
(JTA) — BUENOS AIRES — As Argentina marks the 50th anniversary of the 1976 military coup, a lesser-known aspect of the dictatorship is gaining attention: the disproportionate number of Jews among the disappeared.
Estimates suggest that as many as 1,900 Jews were abducted, tortured and murdered by the military junta during the six-year Dirty War, when many sources say 30,000 people were disappeared. Depending on the source, Jews represented 5% to 8% of the total, even though Jews made up less than 1% of Argentina’s population at the time.
That grim history is being explored in educational initiatives by Argentina’s Jewish community, aimed at younger generations and focused on understanding how the dictatorship operated and the disproportionate suffering it inflicted on Jews.
“The Jews were subjected to a particular form of treatment that resulted in greater brutality on the part of the repressive forces,” according to a new curriculum released by the education department of AMIA, the Jewish community center in Buenos Aires. “The experience of Jewish Argentines who were victims of state terrorism was marked by a strong antisemitic imprint among many members of the task forces.”
The AMIA project includes meetings between Jewish youth and relatives of the Jewish “disappeared,” as well as visits to memorial sites. Some 1,000 students are expected to take part this month.
A parallel digital project, Eduiot (“Testimonies”), documents the stories of Jewish victims of the military dictatorship and includes meetings between relatives of the disappeared and high school students.
The materials rely on personal testimonies to explain the human impact of the dictatorship and to put individual stories in the broader historical context.
Eduiot includes the story of Fernando Ruben Brodsky, a 22-year-old student who disappeared in 1979, including accounts from relatives who continue to seek answers. His mother, Sarah Brodsky, shares accounts of her son, a psychology student and kindergarten teacher who was abducted from his home on Aug. 8 and never seen again.
The testimonials relate how security forces subjected Jews to antisemitic abuse when they were kidnapped or detained, including Nazi language and symbols and “special” interrogations reserved for Jews.
The anniversary comes amid renewed debate over how Argentina interprets the dictatorship. President Javier Milei’s government has called for a broader account that also includes victims of left-wing guerrilla violence, which some suggest is a way to minimize the crimes of the dictatorship. Milei and other voices close to the government have also questioned the 30,000-victim figure, promoting a lower number (often 9,000).
Under the junta, the military and state security forces targeted suspected left-wing sympathizers, including students, unionists, journalists and activists.
In 1979, Jewish advocacy groups such as the Anti‑Defamation League expressed grave concern over the disappearances, focusing on the Jewish victims, and Jewish families in Argentina and abroad helped compile lists of the missing. According to an ADL official at the time, “Jews are not specifically targeted as Jews. However, the security agents tend to be suspicious of Jews.”
The best-known Jewish target of the state was journalist Jacobo Timerman, who published a left-leaning newspaper, La Opinion. In 1977, the generals who ruled Argentina shut down the paper and imprisoned Timerman. Among other things, Timerman was accused of masterminding a plot to establish a Jewish homeland in the remote Patagonia region of southern Argentina.
He survived, and in his 1981 memoir, “Prisoner Without a Name, Cell Without a Number,” he recounted how he was subjected to torture during his 2 1/2 years in confinement.
According to Eduiot, Jewish advocacy for the disappeared “proved effective in bringing early attention to human rights violations.” The U.S. Congress launched investigations, and in a 1978 article in Le Monde, novelist and Holocaust survivor Marek Halter compared the persecution of Argentine Jews to Nazi-era atrocities.
The Eduiot site includes photographs and audiovisual material, and features the accounts of parents, siblings, cousins, nephews and nieces of Jews persecuted and disappeared under the dictatorship.
“Because every testimony matters and holds great value,” according to its website. “Because these dark episodes of our history must never be repeated, and because we want each of the disappeared to have a space of remembrance on this site, helping families sustain their memory and uphold the call for justice.”
The post 50 years after the Dirty War, Argentinians remember the Jews who ‘disappeared’ appeared first on The Forward.
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Fortnite tops ADL’s new ‘leaderboard’ ranking video games on antisemitism safeguards
(JTA) — The online video game Fortnite tops the Anti-Defamation League’s “leaderboard” ranking online video game companies on their efforts to curb antisemitism and extremism on their platforms.
The Online Gaming Leaderboard, which the antisemitism watchdog billed as the “first comprehensive public evaluation” of how online multiplayer games address antisemitism, ranked 10 popular online games based on safety features, moderation, player protections and written policies meant to address antisemitism and hate.
Fortnite was followed at the top of the rankings by Grand Theft Auto Online, Call of Duty and Minecraft. Games labeled as having “limited protection” by the ADL included Counter-Strike 2 and PUBG: Battlegrounds.
Madden NFL, Valorant, Clash Royale and Roblox, a collaborative computer gaming platform for children as young as 7, were ranked as having “moderate protection.”
“Without strong safeguards, these platforms can become breeding grounds for harassment and hateful activity that harms players directly, normalizes hateful ideologies and damages trust,” Jonathan Greenblatt, the CEO of the ADL, said in a statement Wednesday. “This leaderboard provides the transparency that parents, gamers and the industry need to understand where companies are succeeding and where urgent improvements are necessary.”
The leaderboard’s release coincided with a landmark Los Angeles jury verdict finding Meta and YouTube liable for harming a young user through addictive design features.
In the virtual worlds of online gaming, players have posted abusive messages in chats, created antisemitic imagery and even given themselves bigoted usernames.
While Fortnite ranked first, the popular online game has also previously faced scrutiny over allegations that it enabled antisemitic content. Last September, it disabled a character dance feature after users said its gestures resembled a swastika.
Roblox, which has long faced criticism over content moderation, has also been the subject of controversy, including in 2022 when it removed a user-created simulation of a Nazi gas chamber. In the wake of the Oct. 7 attacks in 2023, the Israeli government also urged users to report pro-Palestinian activity in the game that it said included antisemitic content.
The post Fortnite tops ADL’s new ‘leaderboard’ ranking video games on antisemitism safeguards appeared first on The Forward.
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Iran Posts AI Video Showing Missile Striking Statue of Liberty
An Israeli air defense system intercepts a ballistic missile barrage launched from Iran to central Israel during the missile attack, February 27, 2026. Photo: Eli Basri / SOPA Images via Reuters Connect
Iran on Tuesday released an AI-generated video depicting a missile striking the Statue of Liberty in New York Harbor, a global symbol of American freedom and democracy, in one of the regime’s latest propaganda efforts to influence public perception abroad.
Shared by Iranian state broadcaster IRIB as well as a Telegram channel affiliated with the Islamic Revolutionary Guard Corps (IRGC), the minute-long video ends with the slogan “One vengeance for all.”
IRGC Official Telegram Channel Releases AI Video Depicting Iranian Ballistic Missile Strike on United States, Hitting New York City and Toppling Statue of Liberty Shown as Idol of Baal Holding Babylonian Talmud pic.twitter.com/JhgNgHW2Zz
— MEMRI (@MEMRIReports) March 25, 2026
The video was also circulated by Russian state outlet RT, in what appears to be a stark and symbolic threat against the United States.
‘ONE VENGEANCE FOR ALL’ — Iran ‘bombs’ the Statue of Liberty WITH THE HEAD OF BAAL pic.twitter.com/6tPH15fqkZ
— RT (@RT_com) March 25, 2026
Since the start of the US-Israel war with Iran, which began on Feb. 28, Iranian officials have ramped up their propaganda and disinformation efforts, trying to portray Washington and Jerusalem as responsible for decades of regional conflict while seeking to influence left-leaning Americans to mobilize domestic opposition to the war.
This latest widely circulated video presents a striking sequence portraying the United States as the world’s enemy, drawing on imagery from the dispossession of Native Americans and the atomic bombings of Japan to the Vietnam War and more recent Middle Eastern conflicts to craft a sweeping narrative of American aggression.
The clip also features footage alluding to a child on Jeffrey Epstein’s private island — a recurring theme in Iran’s messaging used to suggest that US President Donald Trump launched the current war to distract the public from the Epstein scandal, in which the late financier was convicted of running a sex-trafficking ring involving underage girls and, allegedly, various influential figures.
Later in the video, AI-generated figures of Iran’s former Supreme Leader Ayatollah Ali Khamenei and the late Iranian Major General Qassem Soleimani are shown gazing skyward. Khamenei was killed in an Israeli airstrike on Feb. 28, and Soleimani was killed in a US drone strike in 2020.
The final sequence of the video depicts a missile in Iranian colors striking the Statue of Liberty in New York Harbor, whose head has been replaced with that of Baal, a false god from the Bible, while the statue holds the Talmud, a key collection of Jewish religious teachings and laws.
This video is the latest example of AI-generated propaganda released since the start of the war with Iran.
Last week, Chinese state television CCTV released a separate AI-generated clip illustrating Beijing’s perspective on the Strait of Hormuz crisis, featuring Persian cats in martial arts combat and an eagle-headed human representing the United States.
Experts note that Russian dissemination of Tehran’s video reflects a broader coordinated effort to use visual propaganda to challenge US foreign policy and influence global perceptions amid rising regional tensions.
The latest video came as the US and Iran began engaging in diplomacy over a possible resolution to the war, although Tehran has reportedly responded negatively to Washington’s proposal.