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US resumes dollar transfers to Iraq, NYT reports

July 2, 2026 1:21 AM EDT

U.S. dollar banknotes are seen in this illustration taken March 19, 2025. REUTERS/Dado Ruvic/Illustration

July 2 (Reuters) - The ‌United States ​has ​resumed some air shipments of U.S. dollars to Iraq, several months after suspending ‌them, the New York Times reported on ⁠Thursday, citing two aides to Iraq's prime minister.

"The dollar shipments ‌to Iraq have resumed," ‌Haider al-Aboudi, a spokesman for Iraq’s prime minister, told the newspaper.

Mudhar Muhammad Salih, a financial ​adviser to the prime minister, also confirmed resumption of the transfer, the report said.

In ⁠April, Washington halted a shipment of about $500 million in cash bound ​for Iraq and suspended parts of its security cooperation with Baghdad, in a move ​aimed at pressuring the Iraqi ‌government over the actions of Iran-backed militias.

The suspension in cooperation and funding ⁠for Iraq's security services remains in place, the NYT report said.

The White House, U.S. State Department and ⁠the Treasury did not immediately respond to requests for comment ​outside business hours. Reuters could not immediately verify the report.

The measures were taken as the fallout from the Iran ‌war escalated, with the U.S. blaming Iranian-backed militias for attacks in Iraq, ‌including repeated strikes on the U.S. embassy in ⁠Baghdad and the ‌U.S. consulate in ​the Kurdistan region.

(Reporting by Anusha Shah in Bengaluru; Editing by Jacqueline Wong and Sonali ‌Paul)



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