The United States has resumed some air shipments of dollars to Iraq, months after suspending them to pressure Baghdad to distance itself from Iran, according to aides to Prime Minister Ali al-Zeidi. “The dollar shipments to Iraq have resumed,” government spokesman Haider al-Aboudi said, adding that “the problem has been resolved.” Mudhar Muhammad Salih, the prime minister’s financial adviser, also confirmed the resumption. The Trump administration had halted the flow of cash to Iraq’s dollar-dependent economy in April, blocking the country’s own oil revenues—a move Iraqi officials described as a breach of alliance norms. An anonymous Iraqi official noted that the parallel suspension of cooperation and funding for Iraqi security services remains in effect.

Viewed from Washington, the initial suspension was a response to the smuggling of American currency by Iran-backed Iraqi militias and to attacks on US facilities, including the embassy in Baghdad and the consulate in the Kurdistan region. The measures were also taken as Iraq was selecting a new prime minister, and the United States sought to block candidates it regarded as sympathetic to Tehran. The resumption of dollar transfers, while security cooperation stays frozen, signals a calibrated approach: easing financial pressure while retaining security leverage. From Baghdad, Prime Minister al-Zeidi, who assumed office in late April shortly after the suspension, has moved swiftly to assert state authority over all militias and to launch a sweeping anti-corruption campaign. Iraqi officials present the crackdown as a domestic initiative, but analysts in the region note that it aligns with Washington’s demands for greater accountability and transparency in the use of funds.

The anti-corruption drive has led to dozens of arrests of current and former officials, MPs, and businessmen, with large sums of cash discovered—$15 million at the home of one MP and $4 million in a vehicle. Munir Haddad, an adviser to the prime minister, stated that Iraq’s budget has lost more than $2 trillion to corruption since 2003, and that some suspects attempted to flee to the Kurdistan region, where authorities handed over eight individuals to Baghdad. The government says future trials will be open. Regional experts view the campaign as a means for al-Zeidi to consolidate his position, address rising inflation, and demonstrate readiness to manage potential American investment, while also fulfilling election pledges. Russian media reports speculate on unpublicised cooperation between Iraqi security forces and the FBI on money-laundering cases.

Corruption in Iraq has deep roots. A 2024 Guardian investigation revealed that UN staff demanded bribes of up to 15 per cent of contract values under a $1.9 billion stabilisation programme. New international banking rules, established under a US-Iraq agreement, now require greater transparency on dollar transfers from Iraq’s account at the Federal Reserve Bank of New York, to stop illicit flows to armed groups and criminals in neighbouring countries, including Iran. The resumption of dollar shipments, while security cooperation remains suspended, leaves the dossier in a state of partial normalisation. The anti-corruption trials are expected to proceed, and further arrests are anticipated as the campaign continues.