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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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At the edge of America, six Jewish graves endure
A July 1954 funeral in Fairbanks, Alaska, drew unexpected attention from Jewish newspapers across the country. The woman being buried, Lena Ferguson, was laid to rest in what the Fairbanks Daily News-Miner described simply as the “Jewish plot” inside the city’s Clay Street Cemetery — a small, largely forgotten burial ground that many outside Alaska did not even know existed.
Reports in papers from Florida to Chicago described the “discovery” of what was believed to be the only known Jewish cemetery in the Last Frontier. Some emphasized the unusual circumstances of a Jewish burial in the remote Alaskan interior. Others noted that Ferguson had been married to a non-Jew.
Long before Alaska had a purpose-built synagogue, the Jewish plot at Clay Street had already begun preserving the names of Jews who lived and died in the territory.
The six graves within the plot preserve fragments of a largely forgotten Jewish world built around mining camps, frontier trade, military outposts and isolated immigrant lives. Together, they show how Jewish life appeared in one of the most remote corners of the United States, often before the institutions that sustained it elsewhere.
Ferguson’s funeral itself reflected that improvisational frontier Judaism. According to accounts published at the time, her Jewish identity only became widely known after her brother, Joseph Wishengrad of Catskill, New York, contacted a Fairbanks funeral chapel and requested that she be buried according to Jewish law.
Alaska’s only rabbi, military chaplain Jacob Rubenstein, happened to be away visiting Jewish servicemen stationed at remote military installations. In his absence, Jack Frankel — a former Biloxi, Mississippi, resident working for the United Service Organizations-Jewish Welfare Board — helped officiate the service alongside Robert Bloom, a former Klondike Gold Rush miner who later opened a hardware and general merchandise store in Fairbanks.
Jewish newspapers reported that the cemetery plot had not been used for more than 25 years because many Jews who died in Alaska were sent “to the states” for burial instead.
Before Ferguson, the most recent burial there had been Gussie Beckman in 1939. Born in New York in 1882, Beckman operated the Palace Baths and the Palace Liquor Store on Fourth Avenue in Fairbanks. Her obituary noted that “nothing is known in this city of any surviving relatives.”
Her funeral demonstrated how tenuous Jewish communal life in Alaska could be: a Christian minister, Rev. Rudolph G. Fitz, conducted the service, while Leonard Newman, a University of Alaska mining engineering student from New York City, read the burial prayers. Her pallbearers included future state senator John B. Hall, Deputy Marshal Pat O’Connor and other Fairbanks civic figures.
Other graves preserve similar fragments of frontier life.
Thomas Robin, a Romanian-born immigrant who arrived in Alaska in 1893, was buried in 1923 under the auspices of the Pioneers of Alaska, a fraternal organization founded by early settlers in the territory. His obituary identified him as a member of the Iditarod Igloo chapter.
Julia Warren, buried in 1929, lived near the Mason Creek gold mine and died in an automobile accident alongside three others. Her husband worked as a miner.
Anna Marks, who died in 1915, received a public funeral in Moose Hall, reflecting how civic lodges and fraternal organizations often doubled as gathering places in frontier towns where formal Jewish institutions scarcely existed.
Little survives about David Hurvitz, who died in 1920, beyond a brief bankruptcy notice published years earlier.
And that absence itself forms part of the story. The record preserves only fragments: names, occupations, scattered newspaper clippings and weathered gravestones. Yet together they reveal that Jewish life in Alaska did not begin with synagogues or other organized institutions. It began with individuals — merchants, miners, and immigrants — carrying pieces of Jewish identity into an isolated region where religious infrastructure barely existed.
Alaska’s first purpose-built synagogue, Congregation Beth Sholom in Anchorage, would not be dedicated until 1965, more than a decade after Lena Ferguson’s burial and nearly 360 miles south of Fairbanks.
Clay Street Cemetery eventually closed to new burials as Fairbanks shifted to Birch Hill Cemetery after 1938. In 1982, the historic cemetery was added to the National Register of Historic Places.
Today, Jewish life in Alaska is more visible than it once was. Congregation Or HaTzafon was founded in Fairbanks in 1980, and Chabad established a center there in 2024. The closest active Jewish cemetery is now in Anchorage.
The six graves at Clay Street remain among the earliest surviving records of Jewish life at the edge of America.
The post At the edge of America, six Jewish graves endure appeared first on The Forward.
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Texas candidate’s antisemitic rhetoric sparks outrage ahead of Tuesday runoff. Did it fuel her rise?
(JTA) — When Maureen Galindo finished first in a crowded Democratic primary for a newly redrawn South Texas congressional district in March, the result surprised even seasoned observers of San Antonio politics.
With voters set to decide the Democratic nomination Tuesday, as Galindo faces off with sheriff’s deputy Johnny Garcia, local officials and political observers are grappling with how a little-known candidate with a history of inflammatory remarks about Israel and Jews has come within striking distance of a seat in Congress.
The local housing activist went into the race with little political profile, having received less than 3% of the vote in a San Antonio City Council race last year. Local officials familiar with the contest chalked up Galindo’s success to a litany of factors, including low voter awareness of the candidates and a newly drawn Republican-leaning district that attracted few high-profile Democratic contenders.
What they did not credit for her success was her antisemitic rhetoric. While the race heading into Tuesday night’s runoff has been defined by scrutiny and criticism of Galindo’s views toward Zionists, local political analysts and activists told the Jewish Telegraphic Agency that her controversial positions were not widely known ahead of her March win and, if anything, are hurting her chances against Garcia.
Israel is a growing flashpoint in a number of Democratic primaries across the country, and several candidates have drawn allegations of antisemitism as they employ harsh criticism of Zionism. Galindo’s rhetoric has been even more extreme – including vows to turn a local immigrant detention center “into a prison for American Zionists” – but San Antonio political observers caution against lumping her early success in with the recent wins of progressive candidates in urban districts.
Jon Taylor, a political science professor at University of Texas San Antonio, told JTA that Galindo’s antisemitic rhetoric had been largely unknown at the time of the primary.
“What I can tell from previous candidate forums, she talked about the 1%, she talked about going after Trump and ICE,” Taylor said. “None of the stuff on Zionism, from what I could tell, was ever mentioned.”
Now that her antisemitic tirades have received so much attention, Taylor predicted they would turn off voters in the socially conservative district, where elections are usually driven by pocketbook issues.
“To be honest, talking about Israel, talking about some sort of Zionist conspiracy, is not what voters are looking for,” Taylor said.
Galindo has previously told local outlets that it was her “perception that Zionist billionaires run the world” and posted on social media that “ZIOS=GENOCIDAL EUROPEAN COLONIZER FREAKS,” After Texas Senate candidate James Talarico revealed to JTA that he would not back or campaign with Galindo, she told JTA that “coordinated media attacks declaring my anti-Zionist rhetoric as anti-Semitic” were “causing MORE harm to the Jews of San Antonio by playing into all the stigmas that they own the media.”
Galindo, who has raised almost no direct funding for her campaign, has benefitted from an opaque, newly formed Political Action Committee, which Democrats are charging is Republican-backed.
For some Jewish Democrats, the purported GOP-backed funding is evidence that Galindo’s anti-Israel rhetoric is a political liability rather than a strength.
“Republican dark money groups are spending big to elevate anti-Israel Democratic candidates who are out of touch with voters — because they’d rather face a weaker opponent in races that will decide the House majority in November. It’s cynical and it’s disturbing,” the president and CEO of the Democratic Majority for Israel, Brian Romick, said in a statement to JTA.
Taylor noted that the GOP would only be promoting Galindo because the party wants Democrats “to nominate the worst candidate possible,” backing up the notion that her views are not appealing to voters.
The newly launched Lead Left PAC, which has not disclosed its donors, has spent more than $900,000 on ads and mailers promoting Galindo. Campaign finance watchdogs accuse the group of structuring its activity in a way that allowed it to bypass donor disclosures before voters cast their ballots.
Last week, the Campaign Legal Center filed a complaint with the Federal Election Commission accusing the PAC of having “strategically gamed federal reporting deadlines” in order to not disclose the sources of its funds ahead of the primaries.
The alleged GOP interference in the Texas race also spurred a row between the Republican Jewish Coalition and the Democratic Majority for Israel, which, after it called on Democrats to condemn Galindo, asked the RJC if it would “condemn the Republican Super PACs promoting her?”
The RJC, Texas GOP and Winred – a Republican donation platform that reportedly was at one point linked in the metadata for the website of Lead Left PAC – did not respond to a request for comment from JTA.
A local Democratic Party official familiar with the race told JTA in an emailed statement that it was likely voters did not know much about Galindo ahead of the race, but that with “more knowledge and media attention, voters are now much better equipped about their choices.”
The race has unfolded against the backdrop of a major Republican redistricting overhaul. Congressional District 35, where Galindo is competing, was impacted so heavily that the incumbent Rep. Greg Casar is now running for a different seat, while roughly 43% of residents of Bexar Country, which the district partially covers, were placed in a new district, according to the San Antonio Report.
On Wednesday, a host of Texas Democratic Party leaders released a joint statement decrying Galindo’s rhetoric, writing that her comments “do not reflect our values as Democrats or as Texans.”
Casar, who chairs the U.S. House Progressive Caucus and currently represents much of the district, made the unusual move last week of endorsing Garcia, Galindo’s moderate runoff opponent, telling the San Antonio Express-News that Galindo’s “very inappropriate remarks” sealed the deal.
“I’m a progressive Democrat. Johnny has been endorsed by the more conservative Blue Dogs. But we can all agree that he’s the candidate who can win this race,” Casar told the outlet.
Rabbi Mara Nathan, the senior rabbi of Temple Beth El, a Reform congregation in San Antonio, told JTA that she did not think Galindo had drummed up support heading into her campaign from voters over her antisemitic rhetoric, adding that “if that had been the case, we would have heard about it much earlier on.”
She explained, “An alarm would have been sounded pretty early, and not necessarily from Jewish people, but from other people in the San Antonio community who are our friends and allies.”
Looking to Tuesday’s primary, Taylor said he believed the public spotlight on Galindo’s remarks had changed the race by making voters more aware of her record.
“With this animus now out there and highly visible, people are really alerted to the danger of this woman and what her rhetoric could mean,” Taylor said.
This article originally appeared on JTA.org.
The post Texas candidate’s antisemitic rhetoric sparks outrage ahead of Tuesday runoff. Did it fuel her rise? appeared first on The Forward.
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Trump announces he has ‘largely negotiated’ Iran deal, Strait of Hormuz opening
(JTA) — President Donald Trump announced in a post on Truth Social Saturday afternoon that a deal with Iran had been “largely negotiated,” despite saying earlier in the day that he was undecided on whether to agree to a proposal or resume strikes.
Trump described the deal as a “Memorandum of Understanding pertaining to PEACE” that was “subject to finalization” by the United States, Iran and other countries that participated in talks on Saturday. He noted that he’d “just had a very good call” with Saudi Arabia, the United Arab Emirates, Qatar, Pakistan, Turkey, Egypt, Jordan and Bahrain.
Trump said in his Truth Social post that, separately, he had spoken with Israel Prime Minister Benjamin Netanyahu in a conversation that “went very well.” There was no immediate statement released by the Prime Minister’s Office following Trump’s post.
“Final aspects and details of the Deal are currently being discussed, and will be announced shortly,” Trump added.
In the post, Trump said the deal would include the opening of the Strait of Hormuz, though a widely reported quote from Iran’s Fars New Agency, which is close to Iran’s Islamic Revolutionary Guard Corps, said that Trump’s assertion was “incomplete and inconsistent with reality” and that the strait would remain under Iranian control.
Trump’s announcement comes over a month since he unilaterally extended a fragile U.S.-Iran ceasefire in April.
The announcement did not make mention of Iran’s nuclear program or highly enriched uranium, which Trump has previously stressed must be included in a deal.
Trump’s announcement came hours after he told Axios that he was a “solid 50/50” on whether he would be able to make a “good” deal with Iran, or else “blow them to kingdom come.”
Trump also told Axios that Netanyahu was “torn” over the potential deal but rejected the idea that the Israeli leader was “worried” that he might strike an unfavorable agreement.
This article originally appeared on JTA.org.
The post Trump announces he has ‘largely negotiated’ Iran deal, Strait of Hormuz opening appeared first on The Forward.
