Washington Freezes Half Billion Dollars and Suspends Security Cooperation with Iraq

Saudi-owned Al-Hadath channel quoted informed sources on Monday (April 20, 2026) that the United States has suspended security coordination with Baghdad until a new government is formed that investigates attacks targeting the U.S. Embassy and the logistics support base at Baghdad International Airport. In an unprecedented escalatory step, The Wall Street Journal revealed that the Trump administration blocked a cash shipment estimated at approximately $500 million from Iraqi oil revenues en route to Baghdad. American and Iraqi officials confirmed to the newspaper that these measures are temporary but aim to pressure Iraq into dismantling Iran-backed militias. This step is part of a series of economic and security measures Washington has initiated against Baghdad, including suspending funding for training and arming programs for Iraqi forces.