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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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Antisemitic flyers turn up in Ontario neighborhood where a man charged at a synagogue two weeks ago

(JTA) — Police in the Ontario town where a gunman charged the Sons of Jacob synagogue on Yom Kippur are investigating antisemitic flyers distributed around the synagogue’s neighborhood..

In an Oct. 1 press release, Belleville, Ontario, police encouraged those with tips or video evidence to contact police.

“We recognize that incidents such as this can cause concern within our community,” the police said. “Hate has no place in Belleville, and the Belleville Police Service remains in contact with community leaders and are taking proactive steps to support the safety and well-being of residents.”

Police have not identified the distributor of the flyers, and no arrests have been made.

The Canadian Jewish News published photos of the flyers, which included antisemitic conspiracy theories, such as “every single aspect of the Covid agenda is Jewish” and “every single aspect of abortion is Jewish.”

Coming so soon after the attack, the flyers rattled Sons of Jacob congregant Sari Watson, 40. “It’s so incredibly concerning to see this sort of antisemitic rhetoric surface, less than two weeks after the shooting,” said Watson, who skipped attending services the night of the shooting because she was wary of the increase in antisemitic violence in Canada. “This is a sign that this sort of hatred has infiltrated the public consciousness here.”

Belleville police chief Murray Rodd has confirmed the Sept. 20 attack was deliberate.

“This was an exclusive threat to our Jewish community,” he said soon after the attack. “There is no indication there was a threat to any other population or segment of our community, and it was a hate-motivated crime.”

According to police and Ontario’s Special Investigations Unit, the shooter, identified as 29-year-old Sean Ward of nearby Quinte West, Ontario, opened fire on Const. Jeff Smith, who was stationed outside the synagogue as security. Smith, who was seriously wounded, returned fire, and another officer who arrived at the scene also fired at Ward. Ward later died of his injuries. Smith remains hospitalized.

A GoFundMe site dedicated to Smith’s recovery has raised nearly $1 million on behalf of the Canadian Jewish community.

This article originally appeared on JTA.org.

The post Antisemitic flyers turn up in Ontario neighborhood where a man charged at a synagogue two weeks ago appeared first on The Forward.

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From ‘false flag’ to ‘Bibiwood’: flydubai attack spawns conspiracy theories

(JTA) — JERUSALEM – A young girl steps out of the bathroom on a flight and glimpses a bloody scene unfolding in the cockpit: the co-pilot is attacking the pilot with an axe. She screams for help.

A handful of unarmed passengers, still tanned from their vacations in Thailand, rushes by her, successfully grabbing the control wheel as the plane plunges 17,000 feet. They also manage to save the life of the bloodied pilot.

It sounds like the climactic scene from a high-stakes action movie, yet by now most people know that this is what happened last week on a Tel Aviv-bound flydubai jet.

Or did it happen? It is so fantastical that maybe it is just a fabricated story or an event staged by Israel’s Mossad? That is what millions of people on social media seem to be suggesting in online posts.

Even after nonstop media interviews with the hero pilot or with the ordinary passengers who took control of the plane, conspiracy theories about the attempted hijacking are swirling. Some mockingly insist the event never happened. Others say it was a false flag operation. And many of the comments invoke deep-rooted antisemitic tropes.

Some accuse Israeli Prime Minister Benjamin Netanyahu of staging the incident for political survival or to divert attention from the war in Gaza. Others say it was an attempt by Israel to play the victim or garner global sympathy.

“Brought to you by Bibiwood Productions,” wrote one person commenting on a CNN report posted on Facebook.

“Just stop already,” wrote another person beneath CBS’s clip of interviews with the men who fought the rogue co-pilot posted to Instagram. “It’s seriously embarrassing at this point. We didn’t believe it when the news broke; we didn’t believe it the first time you aired this interview. Reposting clips will not convince anyone with half a brain.”

“Bulls–t,” wrote another person.

Monitoring online responses as the attempted hijacking was unfolding last Wednesday, the Combat Antisemitism Movement’s Antisemitism Research Center found that the first conspiracy theories were posted just 67 minutes after the plane sent its first distress signal.

Within five hours, the ARC documented 1,000 hostile posts, and after 12 hours, 2,963 posts. The posts generated at least 30,000 likes and more than 3 million views.

“The fact is that internet companies have promoted a much more open free-speech policy these days, especially on Instagram and X,” said Sacha Roytman, CAM’s Chief Executive Officer, adding that it’s not just the posts that are problematic but also the comments they generate.

“They [the social media platforms] don’t control information anymore; they don’t want to control it,” he said.

Roytman added that another factor is that agitators – likely from Russia or Qatar – have learned how to build an effective bot network to spread misinformation. When the first post appeared after only 67 minutes, he said, “we knew it was not a human posting because no one cares to go online and start posting [that fast].”

“They were activated extremely fast and set up the stage to create an environment that’s toxic enough for other users to be inspired to find the stories they need to build their own claims,” Roytman said.

Amit Cohen, a research fellow at the Institute for National Security Studies and an expert in cyberattacks and digital fraud, said that during such events, “there is often a gap between what the public wants to know and the amount of verified information available at that moment.

“That is exactly the kind of environment in which rumors and conspiracy theories can develop very quickly,” she said. “In this case, claims appeared online within a short period of time suggesting that the event did not happen as reported, that the videos were fake, or that the incident was staged or a false flag.

“Posts like these are not necessarily the original source of the conspiracy theory,” she said, “but they can function as ignition points.”

Cohen said it was important to distinguish between those who “deliberately create disinformation and those who spread it.”

“Someone may share misleading content simply because it fits what they already believe, because it provokes a strong emotional reaction, or even because it seems interesting or ‘worth looking into,’” she said. “They do not need to know where the message originated, and they certainly do not need to be part of any coordinated campaign.”

Gal Yavetz, a senior lecturer of Artificial Intelligence at Bar-Ilan University, said the flydubai story was so incredible, it left many people “looking for answers.”

“Inevitably, some people will accept more natural explanations, and others, who are more extreme, will go and blame the Jews for it,” Yavetz said, pointing out that similar conspiracy theories arose over the summer when thousands of Moroccan nationals flooded Spain’s North African enclave of Ceuta in July.

“Every time there is something that we can’t really understand, that we can’t really explain, we blame the usual suspects — the Jews, the Jews who control the world, the Jews who are the natural scapegoat,” he said, adding that since the Oct. 7, 2023, deadly Hamas raids in Israel, conspiracy theories have become commonplace and all it takes is for a handful of people to start questioning the veracity of the events.

Posts by Egyptian-born, LA-based political satirist Bassem Youssef, known for his controversial comments about Israel and Jews, are a good example. In a series of videos, he mocks the flydubai event and raises suspicions about what really happened.

In one clip posted on X and viewed 130,000 times, Youssef, whose career was supercharged in 2012 when he was boosted by Jewish comedian Jon Stewart, even terms it a “Hollywood production,” drawing on what critics say are familiar antisemitic conspiracy tropes about Jewish control of Hollywood and, by extension, the world.

“I wish it was chatbots, but the truth of the matter is that social media is a breeding ground for this kind of discourse,” said Yavetz, who specializes in social media, political communication and the spread of misinformation and disinformation online.

“They are definitely helping to spread and to reshare most of this misinformation and disinformation, but we know from previous studies that it is really just a negligible number compared to just regular people who are going to the more extreme sides and just taking their own outrageous opinions to social media just because it is now so easy to do so,” he said.

“You don’t really need to do much; you just need to make sure that you can stand behind your claims, and all of a sudden an outrageous post will have 1,000 likes, then 10,000 likes, and these comments are just circulating again and again, going from Facebook to WhatsApp to Messenger and back to Twitter with screenshots and back to Instagram… It’s a flood that you can’t really stop by taking out an umbrella,” Yavetz said.

INSS’s Cohen, who is also a national security expert with the Dvorah Forum, a group that promotes women’s voices in foreign policy, said that “conspiracy theories are not new, but the digital environment has changed their speed, scale, and the ability to obscure where a message originally came from.”

She explained that “in the past, there were more intermediaries between the person producing information and a large audience. Today, a single account can post a claim and reach very large audiences within a very short time.”

And, Cohen added, AI has made the problem worse.

“Mainly because it has dramatically reduced the time, cost, and skill required to create convincing content,” she said.

It has also made it harder for people to believe what appears on their screens.

“The problem is no longer only that AI can create fake content that looks real. It also makes it easier to dismiss real content by claiming that it is fake,” said Cohen. “Once the public knows that convincing images, audio, and video can be artificially generated, the existence of visual evidence no longer necessarily ends the debate.”

This article originally appeared on JTA.org.

The post From ‘false flag’ to ‘Bibiwood’: flydubai attack spawns conspiracy theories appeared first on The Forward.

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The new U.S. passport design is fueling a Star of David conspiracy theory. Here’s what’s really there.

When Secretary of State Marco Rubio unveiled a new U.S. passport design last week, online sleuths zeroed in on a curious detail: “Is that the star of david???” one TikTok user commented on a video of Rubio showing off the document’s revamped look.

“Why do we rock the Star of David on American passports?” asked an X user in a post that garnered 1.6 million views.

The symbol was not, in fact, the Star of David, but rather 13 stars arranged in a hexagram, representing the original 13 colonies. The design is part of the official Great Seal of the United States, approved by the Continental Congress in 1782 as the official symbol for the newly sovereign country.

The hexagram shape wasn’t a new addition to the passport, either. The Great Seal has long been a fixture of the U.S. passport cover; the new design just enlarges it. The seal — including the cluster of 13 stars in a hexagram — appears on all sorts of government materials, including military uniforms, official presidential documents, and the dollar bill.

The shape’s resemblance to the Magen David, however, has long fueled conspiracy theories about secret Jewish or Israeli influence over the U.S. government. To some online commentators, the redesigned passport was fresh confirmation of that belief.

“It’s a colony of israel (sic) so it makes sense to pay homage to their owners,” a TikToker commented about the new design.

The seal’s history

Shortly after they adopted the Declaration of Independence, the Founding Fathers had another important matter to attend to: appointing a committee to design a seal for the United States.

Benjamin Franklin, Thomas Jefferson and John Adams made up the all-star team. Franklin suggested an image of Moses parting the Red Sea. Jefferson wanted “the children of Israel in the wilderness, led by a cloud by day and a pillar of fire by night.” Adams preferred an image of Hercules, the Greek hero known for his strength.

Evidently, none of them had a great eye for graphic design. Congress tabled their proposals.

Two more committees took up the project. In 1782, Secretary of the Continental Congress Charles Thomson integrated the various committees’ ideas into a new design, which featured a bald eagle, a shield, an olive branch and arrows, and a constellation of 13 stars. Congress approved the seal that year.

Thomson described the design as featuring “thirteen stars forming a constellation”; he did not specify a hexagram or six-pointed star. Original sketches, in fact, show the stars in a seemingly random arrangement.

Charles Thomson’s design for the Great Seal of the United States, 1782. Courtesy of National Archives Catalog

Robert Scot, the chief engraver of the United States Mint, is credited with arranging the 13 stars into the six-pointed geometric star.

According to legend, George Washington ordered the 13 stars arranged as a Star of David as a tribute to Haym Salomon, a Jewish financier who aided the Revolutionary cause. But there’s no historical evidence of that, nor that Washington or Salomon had any role at all in designing the seal.

One plausible theory is that Scot may have simply been emulating the arrangement of stars on the American flag at the time, rearranging the 13 stars to fit symmetrically inside a circular field.

Even so, the myth of the Star of David intentionally appearing on the seal has reached as far as former presidential candidate Ben Carson, who in 2015 suggested that “Salomon gave all his funds to save the U.S. Army and, some say, no one knows for sure, that’s the reason there’s a Star of David on the back of the one dollar bill.”

Historians were quick to correct the record.

“If you squint, you can say there’s some resemblance but that certainly was not the intention of the designers, that we’re aware,” Wayne Homren of the Numismatic Bibliomania Society, which studies currency, told ABC News.

The theory behind the theory

Kent Harber, a professor of psychology at Rutgers University who studies conspiracy theories, said the passport claim fits within the emerging zeitgeist, in which “conspiracy beliefs about Jews and Israel are getting an increasing amount of currency.”

In this case, gaps in the historical record surrounding the hexagram’s design may have helped the theory take hold.

“We can’t take ‘no reason’ for an answer,” Harber said. “We have to have an explanation, and we will fill in that blank with other explanations, even bogus, sometimes sort of seemingly silly ones.”

Harber’s research has found a strong relationship between conspiracy theories, antisemitic attitudes, and hostility toward Israel.

Conspiracy theories are like “epistemological junk food,” he said. “They satisfy this craving by giving you exactly what you want, even though it’s not particularly good for you or for society.”

The post The new U.S. passport design is fueling a Star of David conspiracy theory. Here’s what’s really there. appeared first on The Forward.

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