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U.S. Halts Aid to Iraq Amid Rising Militia Violence

4/22/2026

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Story summary
  • The United States halted dollar shipments to Iraq and froze military cooperation.
  • The U.S. Treasury blocked nearly $500 million from Iraq's oil sales.
  • Funding for counter-terrorism and military training is suspended until militia violence ceases.
  • The drone attack on a U.S. diplomatic facility in Baghdad prompted the United States to summon Iraq's ambassador.
  • The United States aims to pressure Baghdad to dismantle Iranian-backed militias, as tensions rise in the region.