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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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Trump announces deal with Iran is ‘now complete’
(JTA) — President Donald Trump announced Sunday that a deal to end the war with Iran and reopen the Strait of Hormuz is “now complete.”
“Congratulations to all! I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade,” Trump wrote in a post on Truth Social. “Ships of the World, start your engines. Let the oil flow!”
Pakistani Prime Minister Shehbaz Sharif, who has played a key mediating role in talks between the U.S. and Iran, also announced that a deal had been reached minutes before Trump made his post, adding that an official signing ceremony would take place Friday in Switzerland.
“Both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon,” Sharif wrote in a post on X.
The announcement comes more than three months since Israel and the U.S. launched its joint strikes on Iran in February. While the deal’s details have not yet been publicly announced, it is expected to extend a ceasefire between Iran and the U.S. for 60 days, during which the countries will negotiate a broader agreement addressing Iran’s nuclear program.
Israeli Prime Minister Benjamin “Bibi” Netanyahu did not immediately put out a statement following the announcement, but earlier Sunday he had posted a message on X celebrating Trump’s birthday.
Also earlier Sunday, Israel launched strikes on Hezbollah targets in Beirut, prompting Iran to vow retaliation and drawing a sharp rebuke from Trump, who said the strikes had “delayed the signing by a few hours.”
“Why did Bibi have to do a f–cking attack? I was so pissed off. I let him know. He has no fucking judgement. I let him know that,” Trump told Axios Sunday.
This article originally appeared on JTA.org.
The post Trump announces deal with Iran is ‘now complete’ appeared first on The Forward.
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Jane Yolen, children’s book author whose ‘The Devil’s Arithmetic’ became a Holocaust classic, dies at 87
(JTA) — Jane Yolen was already an award-winning author and illustrator of more than 100 titles for young readers when her editor suggested she write a Jewish children’s book.
At first, she resisted the idea. Sure, she was Jewish. But she didn’t grow up in a religiously observant family, and she insisted she didn’t know enough about Judaism to take on the project.
Finally, she relented. Drawing on a spark of an idea about a Holocaust time-travel fantasy, Yolen turned in the first draft of what would become “The Devil’s Arithmetic,” her 1988 young adult novel. “I thought, ‘OK, I’m going to try this,’” Yolen recalled to the Jewish Telegraphic Agency years later.
The book won immediate acclaim and garnered multiple awards. Today, it’s seen as a classic of the genre — and one that remains caught up in banned-book lists.
For Yolen, who died Thursday at 87 in her home in Western Massachusetts, “The Devil’s Arithmetic” became her signature title. Still in print, the book was also made into an Emmy Award-winning Showtime feature starring Kirsten Dunst. It was the cornerstone of a titanic legacy in children’s literature, her family said in a statement.
“It is with profound sadness that I, along with my brothers, Adam Stemple, and Jason Stemple, share the news of our mother, Jane Yolen’s passing,” her daughter Heidi Stemple wrote on Facebook, adding that Yolen had “passed gently with no pain or stress” and her family by her side, reading one of her books to her.
Yolen was born on Feb. 11, 1939, in New York City. Her father was a journalist and her mother was a psychiatric social worker until Yolen was born.
An alumna of Smith College, where she won poetry and journalism awards, she worked first as an editor in New York City, writing at her breaks and time off. Her first published book, “Pirates in Petticoats,” a nonfiction work about women on the high seas, was published when she was 22.
She soon pivoted to children’s literature, becoming one of the most prolific authors in the genre. She went on to publish 450 children’s books, including more Jewish titles, and was known as “the Hans Christian Andersen of America.” She won the prestigious Caldecott Medal for her 1987 picture book, “Owl Moon,” and her “How Do Dinosaurs …” series is a staple in many preschool classrooms. (It includes one Jewish title: “How Do Dinosaurs Say Happy Chanukah?” Her 450th title was published just this year, her children said.
But it was “The Devil’s Arithmetic,” scholars have said, that cemented her legacy as a leading author for young Jews. The novel was a trailblazer for its blending of time-travel with historical veracity, according to the late Norman H. Finkelstein, a National Jewish Book award winner who was a children’s librarian himself.
“It was a different Holocaust book,” Finkelstein told JTA in 2018, on the occasion of the title’s 30th anniversary. “It was not strictly factual, it was not a memoir. Jane did a superb job in taking the story of the Holocaust down to a level that ordinary American kids could understand. The characters were realistic, not paper cutouts.”
Other titles of hers included “Meet Me at the Well: The Girls and Women of the Bible,” with Barbara Diamond Goldin, and “Jewish Fairy Tale Feasts,” with her daughter Heidi, who developed and illustrated the hands-on recipes.
Yolen relished the collaborations with her daughter. They lived next door to each other, along with Stemple’s family, with two grandchildren who were taste-testers of Stemple’s recipes.
“Jane was a treasure, and it is difficult to think of the world of books — indeed the world itself – without her,” Richard Michelson, an award-winning author of Jewish children’s books and Yolen’s friend and neighbor, wrote on Facebook. Describing her as a cherished mentor of younger writers, he added, “Jane created classics as if it were as easy as breathing.”
While often assigned in schools as part of lessons on the Holocaust, Yolen’s titles are not without controversy. In 2025 a Texas school district, using artificial intelligence, flagged “The Devil’s Arithmetic” for removal as a title containing “DEI,” or diversity, equity and inclusion content. The book became one of several well known Holocaust titles to be pulled from schools in the last few years.
Though she had initially resisted the idea of being a Holocaust author, Yolen would go on to publish a trilogy of unconventional young-adult novels about the subject. She incorporated elements of “Sleeping Beauty” into 1992’s “Briar Rose.” “Mapping the Bones” followed in 2018 as a riff on “Hansel and Gretel.”
“Whenever we think of the Holocaust, we think of remembering,” Yolen told JTA in that same 2018 interview. “We think of never forgetting. Soon all we will have are the stories.”
In addition to her children, Yolen is survived by six grandchildren. Her husband, David Stemple, to whom she was married for 44 years, died in 2006.
This article originally appeared on JTA.org.
The post Jane Yolen, children’s book author whose ‘The Devil’s Arithmetic’ became a Holocaust classic, dies at 87 appeared first on The Forward.
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Hebrew Union College claims Ohio’s charity-law suit violates its First Amendment rights
(JTA) — The Reform movement’s central rabbinical seminary filed a motion to dismiss the state of Ohio’s lawsuit against the school Friday, claiming the suit violates “foundational Jewish religious doctrine.”
It was the latest escalation in a pitched battle between Hebrew Union College and the state attorney general’s office, which has accused HUC of violating nonprofit law by shuttering degree-granting programs on its historic Cincinnati campus.
The suit, HUC argues, “violates the First Amendment by entangling government and religion.”
The suit was originally filed in April by then-Ohio AG Dave Yost — his second against the college related to its controversial plan to wind down its Cincinnati operations in favor of its New York and Los Angeles campuses. Yost claimed HUC’s actions in Cincinnati misled its donors by leaving a city where they were actively fundraising to support operations, and also violated its charter, which states that the school would “permanently maintain” a residence there.
The state seeks to seize HUC’s assets in Ohio and redirect them to a new, yet-to-be-decided nonprofit with a similar mission; an upstart rabbinical school founded by HUC alums says it wants them.
Such a move “is an unconstitutional and illegal governmental assault upon religion,” HUC’s strongly worded motion reads.
It continues, “The Attorney General has no role in dictating the religious affairs of institutions like HUC. The Court should reject his overreach into religious matters and should dismiss the Complaint because it is unconstitutional and unlawful.”
HUC also argues its vote to shutter the Cincinnati campus was done in full compliance with the law, adding that it intends to maintain the campus’s other assets, including the Klau Library, the American Jewish Archives and the Skirball Museum. In addition, citing a passage in the Torah that states “God will come to his people wherever they welcome him,” the school argues that considering “Jewish demographic realities” is part of its religious mission.
“These decisions were made thoughtfully and responsibly to ensure the long-term success of the institution and our ability to continue graduating strong Jewish leaders,” HUC president Andrew Rehfeld said in a statement accompanying the motion. The lawsuit, he added, “improperly seeks to interfere in the decisions of a religious organization, and this cannot be allowed to go unchallenged.”
Yost himself resigned as AG this week to join the Alliance Defending Freedom, a conservative Christian legal group that, in 2022, represented a Tennessee adoption agency that refused to foster a child to a Jewish couple. The suit against HUC continues under the state AG’s office.
This article originally appeared on JTA.org.
The post Hebrew Union College claims Ohio’s charity-law suit violates its First Amendment rights appeared first on The Forward.
