“Storm” approaching as Trump sharpens sanctions against Iraq

“Storm” approaching as Trump sharpens sanctions against Iraq
2025-02-04T08:09:06+00:00

Shafaq News/ Warnings are increasing about the potential use of economic warfare by US President Donald Trump in the coming period in the Middle East. There are also growing concerns over the outbreak of new types of wars in the region, which could affect Iraq.

These looming possibilities coincide with a highly alarming factor: the United States' control over the Iraqi economy, as Iraq's oil export revenues are deposited in the US Federal Reserve.

Experts agree that all of Iraq’s economic funding sources are under the oversight of the US Federal Reserve, meaning Trump can do a great deal to impose his political and security will on Iraq, aligning with his vision for US national security.

Future of uncertainty

Iraqi Parliament Security Advisor Mukhled Al-Darb, speaking to Shafaq News, rules out the possibility of military wars in the near future. However, he predicts the occurrence of "different types of wars," such as hybrid wars, whether economic or cyber, which could be more effective than military confrontations.

Al-Darb expresses concern that weak, economically struggling countries may have their political will imposed upon them through these potential wars.

Despite this, he believes the future of the Middle East remains "uncertain," referring to the conflicting statements made by Trump. “On one hand, Trump claimed he wants to bring peace to the Middle East and Ukraine, while on the other, he mentioned that peace may be imposed by force, suggesting a strategic vision for a new Middle East."

Trump's statements about cutting aid to several countries, including Jordan, have resonated in Iraq, especially his remark that Jordan and Egypt should accept Palestinian refugees.

For Al-Darb, this situation is concerning because "Trump considers Iraq part of the Axis of Resistance and an extension of Iranian policies," while simultaneously maintaining vital economic ties with the US since Iraq’s oil revenues are deposited in the US Federal Reserve. Al-Darb concludes, "Trump is coming to the region with the economic stick that he can use against everyone."

Clear Iraqi Warnings

Aref Al-Hamami, a parliament member of the State of Law Coalition, shares the concern with Al-Darb. Speaking to Shafaq News, Al-Hamami hopes that there will be no US sanctions on Iraq, "since it is a peaceful country, has not exported terrorism, nor has it violated any other country. It is also a democratic nation where power transitions happen peacefully."

Al-Hamami expresses his caution and lack of optimism about Trump’s presidency. He hopes that US policy toward Iraq will change, though he acknowledges that "Trump has not only threatened Iraq but many countries worldwide."

The Coordination Framework, representing the Shiite political forces within Prime Minister Mohammed Shia Al-Sudani's government, has stated it is not afraid of any US sanctions on Iraq in the coming period.

Meanwhile, since the US presidential election results were announced, some Republican lawmakers have been mobilizing the new administration against certain Iraqi figures they accuse of "full allegiance to Iran," urging the US president to take measures against them.

Trump’s new team includes figures who are staunch opponents of the Iranian axis and are highly critical of the policies of former Presidents Biden and Obama, believing that they handed Iraq over to Iran after the US withdrawal following a series of negotiations.

“Washington Controls Baghdad”?

Security expert Ali Al-Mamaari is clear in his assessment that "Iraq is in Trump’s hands” for several reasons including the strategic agreement between the two countries, and the fact that all of Iraq’s economic resources are under the control of the US Federal Reserve.

"Trump can do a lot to impose his policies on Iraq. Trump’s first term was largely defined by economic wars with other countries.”

Today, Al-Mamaari sees Trump attempting to impose his political and security will on countries with which Washington has "economically strained relations," as was the case with China, Mexico, and Canada, where the US imposed varying tariffs on their exports.

Strategic analyst and security expert Alaa Al-Nashou discusses the potential consequences of any US economic war on Iraq. he told Shafaq News that the economic damage would be harsher and more severe than the security or political damage, particularly due to Iraq’s internal challenges, including high unemployment and a poverty rate exceeding 40%.

He summarizes the damage as follows: Collapse of the Iraqi economy, inflation, and total economic collapse affecting the daily lives of the Iraqi people.

Al-Nashou expresses concern that any US economic sanctions could "push the security situation and social stability into the unknown," highlighting the difficulty in predicting the harmful impacts on Iraq’s national security, especially given the ongoing threats from Gaza, Lebanon, and Syria.

"There are real threats from ISIS, whose operations could increase amid a devastating economic collapse."

Shafaq Live
Shafaq Live
Radio radio icon