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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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Nithya Raman, LA mayoral candidate who clashed with DSA on Israel, wins their endorsement

Ever since Councilmember Nithya Raman’s last-minute entry into the Los Angeles mayoral race, questions have loomed about her relationship with the Democratic Socialists of America — and whether her stance on Israel would chill the group’s support for her underdog campaign.

Raman, a dues-paying DSA member, had criticized the group for a statement the national organization made after Oct. 7. In 2024, she was censured by the LA chapter for courting a pro-Israel group in her campaign for re-election to city council.

But following weeks of debate in the local chapter, Raman won its official endorsement Wednesday, paving the way for the leftist group to organize for her campaign to unseat incumbent Mayor Karen Bass.

The endorsement, which reportedly came with the support of more than 60 percent of some 1,400 voting members, vindicated Raman’s breaking with the group on Israel and other issues. It also comes after the councilmember stated definitively that she believed the war in Gaza constituted a genocide — a basic litmus test inside the hardline anti-Zionist group.

Raman, 45, seemed to allude to the conflict in a statement thanking the organization.

“This endorsement means something because of what it represents: a coalition of people who don’t always agree on every question, but who agree that LA needs real change,” Raman wrote on Instagram, adding. “It’s not about everyone thinking alike. It’s about building power together toward the same goal.”

The contentious endorsement process around Raman, one of the group’s national success stories and its first member to win citywide office in Los Angeles — three more have since joined her on city council — underscored the fierce ideological commitments in the DSA. Yet its outcome may not be entirely in her favor, as mainstream Jewish groups have come to hold DSA and its candidates in contempt.

Raman has rarely fit neatly into the group’s political conventions. On Oct. 7, 2023, when more than 1,200 people were killed in Israel, the national DSA club publicly blamed Israel for incurring the Hamas-led attack. Raman — whose district included heavily Jewish neighborhoods like Hancock Park and Sherman Oaks — had quickly issued a statement standing with her Jewish and Israeli constituents. A few days later, she also disavowed the DSA response, calling it “unacceptably devoid of empathy.”

Her positions on the Middle East frustrated Israel’s supporters, too. In June 2024, she helped pass a resolution calling for a ceasefire and release of hostages, infuriating the local Jewish federation and other Jewish groups, which said she was selling out Israel’s ability to defend itself.

Nevertheless, she earned the backing of Democrats for Israel-Los Angeles in her run for re-election that year, with the president of the liberal Zionist group crediting her statement that Israel had a right to exist and her general engagement with Jewish constituents. Outraged, DSA’s members voted to censure her.

In the runup to June’s mayoral primary, Raman joined the livestream of leftist firebrand Hasan Piker, telling him she agreed that it was committing genocide in Gaza. But DSA did not endorse any candidate in the June 2026 primary — even as Raman was locked in a tight race with the conservative reality star Spencer Pratt for a spot in the November runoff. (Another DSA candidate, Rae Huang, placed a distant fifth.)

Asked whether she believed Israel was an apartheid state, Raman said, “Yeah, I think that they’re treating people unfairly, that they’re not treating people equally, and I’m critical of that.”

Israel is not the only wedge issue for Raman in DSA. She split with the group — and her democratic socialist peers on city council — on a local “mansion tax,” saying that it discouraged new multifamily housing construction. And she was one of only two councilmembers who railed against a controversial multibillion-dollar expansion of the LA convention center — even as the other DSA members, who have strong backing from the building trades unions, voted for it.

The debate within DSA was framed as ideological purity versus political pragmatism. Bass, a historically unpopular incumbent whose tenure included the most catastrophic wildfire the city had seen in decades, has governed as a centrist Democrat; though Raman is broadly aligned with DSA policy, some of the group’s members who opposed the endorsement wrote in a communist magazine this week that it should not be “rewarded based on ideological proximity.”

The DSA’s endorsement was the second major pickup for Raman in the last week; the powerful hospitality workers union, Unite Here Local 11, officially threw its support behind Raman Tuesday, though organized labor still largely backs Bass.

Now a new question emerges: whether the endorsement of a group with a few thousand members came too late. Peer-to-peer betting markets currently have Bass as a roughly 2-to-1 favorite.

Sean Wakasa, co-chair of the Los Angeles DSA chapter, told The New York Times the group was warming to the challenge.

“We have thousands of members who are ready to organize, talk to their neighbors, knock on doors and build power to shake up Los Angeles and build a brighter future,” Mr. Wakasa said.

The post Nithya Raman, LA mayoral candidate who clashed with DSA on Israel, wins their endorsement appeared first on The Forward.

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Why is this chef opening a kosher Israeli restaurant in LA right now?

How do you explain Malka, the new kosher Israeli restaurant in Beverly Hills?

I’m not talking about the food — I haven’t eaten there yet — I’m talking about the fact that it’s opening at all. Why would Eyal Shani — many of whose restaurants worldwide have faced protests, vandalism and physical attacks — dare to open another restaurant at this particularly fraught time?

“The whole situation is leading me to open more, more, more,” Shani told me when we met last week. “That is my reaction as a Jewish man. If they are trying to kill you, you should make a lot of children. And these are my children.”

We were sitting in the empty restaurant on the ground floor of the boutique SIXTY Hotel. Shani, who is 67, wore a T-shirt and dark khakis. With his stubbly beard and unruly gray hair, he could pass for an intense, very post-grad philosophy major. He put a plate of farmers market green grapes between us.

The night before, at a pre-opening event for journalists, influencers and, it seemed, models, the same space was packed. Piles of fresh raw vegetables — a Shani signature — filled the long bar counter along with perfect rectangles of toasted focaccia topped with either steak tartare or smoky eggplant caviar. The crowd swelled, the music blared, trays of mojitos and palomas disappeared. It was signature Shani — a frolic of nature, noise and Israeli food.

Now, the large, modern space — a rare high-end restaurant in Los Angeles’ ever-struggling kosher restaurant scene — was quiet. Shani leaned back into an earth-toned banquette and reflected for a moment on how those two words, “Israeli food,” have become so toxic,  especially following Oct. 7.

Demonstrators accuse Israeli chefs of passing Palestinian food off as Israeli and of being complicit in their government’s actions. Shani’s business partner, Shahar Segal, did engage in marketing work with the Gaza Humanitarian Foundation, the controversial U.S.-Israeli organization established to feed Gazans. But Israeli restaurants around the world with no such involvements have faced similar protests, as have Jewish-owned restaurants with no ties to Israel.

Malka’s opening follows the closure of Shani’s restaurants Miznon in Melbourne and Gila & Nancy in Berlin, both targeted by mobs chanting anti-Israel slogans.

The rioters in Melbourne entered MIznon, threw chairs, chanted “Death to the IDF!” and only stopped when the two owners of a nearby pizza place — both Lebanese — confronted them.

“In the end, they succeeded to kill the restaurant,” Shani said. “They almost killed our staff there.”

Shani happened to be at the restaurant in Berlin when dozens of protesters surrounded it, shouting, “Stop feeding genocide!”

He raced into the kitchen, put together some food platters and went outside to offer the demonstrators the opportunity to eat and talk.

“They didn’t want to eat,” he said. To them, he added, “Eating from an Israeli is like eating from Satan.”

Shani rejected the charge commonly leveled at Israeli chefs — that they have stolen Palestinian foods and recast them as Israeli.

Chef Eyal Shani Courtesy of The Good People Group

“I always declare that I took a lot of inspiration from the Palestinians,” he said.

In 1989, Shani opened his first restaurant, Oceanus in Jerusalem. He was 29 and, he said, he knew nothing about food except that he loved bringing people together around it. He wanted to make something like the fresh focaccia an Italian Jewish neighbor once served him. The closest thing to it was the Arabic laffa Shani would buy from a closet-sized bakery in West Jerusalem.

“I had a cook, a Palestinian man from Hebron, a very talented man,” Shani said. “I loved him. He said, ‘Eyal, no problem, my grandmother makes it every day.’ He showed me.”

Shani brushed the finished bread with olive oil and showered it with fresh rosemary.

I told Shani that I ate at the now-closed Oceanus at the tim and to this day remember being served, when we sat down, fragrant sheets of his focaccia-laffa.

“It was a hybrid,” Shani said, “Palestinian, Italian and new Israeli. Each one is getting influenced by the other. You can’t do it with just one brain.”

Malka, a strictly kosher restaurant, presents a different kind of challenge to Shani, who is not an observant Jew. His Michelin-starred Manhattan restaurant Shmone offers, for instance, “A mountain of grilled calamari, okra, tomatoes and yogurt.”

But the chef who turned flour, yeast and water into a hybrid Palestinian-Israeli-Italian flatbread revels in facing constraints like kashrut.

“Each culture leads with its limitations,” he said. “These limitations are a blessing — they’re shaping your creation.”

The kosher stricture against cooking meat together with dairy products didn’t faze him.

“Take me off dairy, put a beautiful bottle of olive oil in front of me — what are the limitations?” he said. “And if there would be no olive oil anymore in the world, I would quit, I would not cook.”

Beyond the kitchen, Shani said he wanted to reach more Israelis with his food. About 70% of Israelis are strictly kosher or prefer it.

“So how can it be that we’re only cooking for the hipsters in Tel Aviv?” Shani said. “It’s unfair.”

The marketplace has rewarded Shani’s ability to combine local ingredients and techniques with creativity and  showmanship. The chef has around 70 restaurants — neither he nor his publicist knew the exact number — including Malka’s in Tel Aviv, Miami and New York.

And the backlash isn’t close to stopping him. Shani just announced a new restaurant project in, yes, Melbourne.

“It doesn’t make me frightened,” he said. “It’s the way my personality reacts. I think it’s the instinct of survival. You just keep going.”

The post Why is this chef opening a kosher Israeli restaurant in LA right now? appeared first on The Forward.

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An unvarnished look at Polish Hasidic life before the Holocaust 

In the decades before the Holocaust, Warsaw still teemed with Hasidim. Muranowska Street was virtually lined with shtiblekh (prayer and study houses), each with its own dynastic affiliation. But one day, a young man established a new shop on the street and brazenly kept it open on the Sabbath. Modernity had arrived.

Some Hasidim didn’t seem too concerned. As we read in the new English translation of Yechiel Hofer’s Hasidic Warsaw: Reb Zalmen and the Aleksander Shtibl, the protagonist, Reb Zalman, dismissed the whole scandal. The Sabbath, he shrugged, was simply too holy to be violated by people so unworthy. And in truth, Warsaw’s Hasidic enclaves continued to thrive, albeit in a more concentrated form.

Most Yiddish authors assumed the inevitable demise of Jewish tradition. In story after story, we read about pious, aging parents watching helplessly as their sons and daughters reject their ancestors’ ways to become Zionists, revolutionaries, assimilationists and, of course, Yiddish writers. Nobody, it seemed, could hold back the tide of progress.

But many interwar Polish Hasidic leaders were actually galvanized by the challenge of secularization. They launched ambitious, transnational fundraising initiatives, refurbished thousands of heders [traditional primary schools], and built hundreds of Hasidic yeshivas and Bais Yaakov girls’ schools. And as Hofer’s book shows, their shtiblekh recovered and proliferated down to the bitter end.

Hasidic Warsaw is one of the few works of modern Yiddish literature to present Hasidism as something other than moribund. Reminiscent of I.B. Singer’s In My Father’s Court, but more gracious, Hofer’s stories bring us into one corner of this impossibly thriving world: a Warsaw shtibl attended by followers of the Aleksander Rebbe. Reb Zalman, an irritable luftmensch (unemployed dreamer), is the shtibl’s most zealous member and the Hofer family’s most frequent Sabbath guest.

Reb Zalman’s pauper’s arrogance exasperates even his fellow Hasidim, who cannot resist pranking him. They appoint him “Purim Rabbi,” ply him with liquor, and get him to accept bribes. They lure him out of his Hasidic enclave to experience Gentile taunts and glares. Some try to help him gain a livelihood, but he proudly self-sabotages. Their most lucrative scheme, a tavern in the shtibl, fails because Reb Zalman decides to give all the liquor away.

Then there is Reb Zalman’s misogyny. He disdains his kind host, Hofer’s mother, who is “strictly observant, pious and indeed a Hasid in her own right.” She tactfully challenges his prejudices by recounting stories of her Grandmother Brayndl, a passionate follower of a Hasidic group called the Porisover Hasidim, who used to travel regularly to see the Rebbe, Reb Yankev Hersh [and] was deeply respected at the Rebbe’s court.” Yet Reb Zalman scoffs at even the most revered Hasidic women.

Hofer, in short, doesn’t romanticize interwar Hasidism. But he doesn’t dismiss it either. His family’s Sabbath table, he writes, provided even the ungrateful poor with a slice of Heaven. In the Aleksander shtibl, “deep seriousness combined with high-minded joy reigned.” Reb Zalman’s gift for quirky storytelling almost redeemed him in Hofer’s eyes.

Jonathan Boyarin is among the few scholars able to grasp not only the external, quantitative significance of the Polish Hasidic shtibl but its inner life: imperfect men swaying in prayer, chants, and study, occasionally halting to make a toast with vodka and herring or recount another edifying story. Yet Boyarin remains deeply attuned to Hofer’s gentle irony.

Hasidic Warsaw, with its multitude of stories-within-stories, is in a sense a work of collective authorship. We behold a community of storytellers constantly striving to make each other better by means of humorous, cautionary tales. Secularist Yiddish writers drew liberally from such stories, stylizing and serializing them to great acclaim while assuming the demise of the very movement that sustained them. But only physical annihilation could do that.

The reader of Hasidic Warsaw is left with a deep sense of loss. Without storytelling, how can we hope to regain that kind of connectedness? How can future Jewish literature emerge as easily and naturally? In honoring the art of storytelling, Hasidic Warsaw reminds us of yet another world that was lost in the Holocaust.

 

 

The post An unvarnished look at Polish Hasidic life before the Holocaust  appeared first on The Forward.

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