The report said a recent cargo flight carrying nearly $500 million in US banknotes was blocked by the United States Department of the Treasury.

The United States has stopped sending shipments of US dollars to Iraq and has also paused some security cooperation with the Iraqi military, increasing pressure on Baghdad to rein in powerful groups aligned with Iran, according to Iraqi and US officials cited by The Wall Street Journal.

The report said a recent cargo flight carrying nearly $500 million in US banknotes was blocked by the United States Department of the Treasury.

The funds came from Iraqi oil revenues held in accounts at the Federal Reserve Bank of New York.

This is the second dollar shipment to Iraq’s central bank that Washington has delayed since the US–Israel war involving Iran began in late February.

The move comes as Washington pressures Baghdad to strengthen its alignment with the United States and reduce its longstanding ties with Iran during the nearly eight-week conflict.

It follows a series of attacks claimed by Iran-aligned groups inside Iraq, targeting US military facilities and neighbouring countries, which they say are in support of Tehran.

The US has also carried out airstrikes against armed factions in Iraq linked to Iran, including groups associated with the Popular Mobilisation Forces a coalition of militias that is officially part of Iraq’s state security structure.

In a statement on Tuesday, Iraq’s central bank did not directly address the halted shipments but said it has enough US dollar reserves.

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