Iraq becomes Iran's last route for smuggled US dollars, MP says
Summary
Iraq has become Iran's sole channel for obtaining smuggled US dollars amid intensified American economic measures aimed at Tehran, as indicated by Iraqi lawmaker Sherwan Doberndani. Following the cessation of dollar transfers to Baghdad about a month ago, the value of the dollar has risen against the Iraqi dinar. Doberndani cautioned that Iraq may face severe US sanctions, potentially impacting its oil sector, unless it integrates armed groups operating outside of government control. These developments come just ahead of the international coalition's planned withdrawal from Iraq on September 30, 2026, which concludes their mission against ISIS and raises concerns about armed Iranian-aligned factions remaining unchecked.
Analysis
Iran: Iran is a Middle Eastern country subject to intensified US economic sanctions. The development described positions Iraq as its last viable route for obtaining smuggled dollars amid ongoing American pressure campaigns. Iraq: Iraq is a sovereign nation in the Middle East that shares a long border with Iran. In the context of this news, it has emerged as the primary remaining conduit for smuggling US dollars to Iran due to tightened American financial restrictions on Tehran. Sherwan Doberndani: Sherwan Doberndani serves as a member of the Iraqi parliament’s security and defense committee. He highlighted the persistence of dollar smuggling from Iraq to Iran and warned of potential US sanctions on Baghdad if it fails to control armed groups. Sanctions Actions: US Treasury actions have targeted Iraqi networks and individuals linked to Iran-backed groups and illicit financial channels as part of broader efforts to isolate the Iranian regime. Coalition Withdrawal: International coalition forces are completing their withdrawal from Iraq by September 30, 2026, marking the end of their mission against ISIS. US Economic Measures: The United States has restricted dollar access for Iraq in an effort to curb money laundering and sanctions evasion networks that benefit Iran.
Categories
macropolitics
Related sources
- https://shafaq.com/en/Kurdistan/President-Barzani-credits-Islamic-scholars-with-promoting-moderation
- https://www.usnews.com/news/us/articles/2026-09-15/as-the-last-us-troops-pack-up-in-iraq-militias-signal-their-weapons-will-stay
- https://www.iraqinews.com/tag/scott-bessent-us-treasury-iraq-iran-sanctions/
- https://home.treasury.gov/news/press-releases/sb0626
- https://shafaq.com/en/Iraq/US-sanctions-11-Iraqi-targets-over-Iran-links
- https://www.trtworld.com/article/43ae13e41513
- https://www.usnews.com/news/top-news/articles/2026-08-25/analysis-iraq-may-show-how-u-s-can-squeeze-irans-trade-partners
- https://en.wikipedia.org/wiki/Sherwan_Sherwani
- https://www.dawn.com/news/2026807
- https://english.aawsat.com/features/5299826-inside-iraq%E2%80%99s-shadow-economy-parties-militias-and-oil
- https://apnews.com/article/iraq-us-withdrawal-7d050ff17a0c52298207bd9e60851fcd
- https://www.atlanticcouncil.org/blogs/menasource/ten-questions-and-expert-answers-on-the-final-withdrawal-of-us-troops-from-iraq/
- https://home.treasury.gov/news/press-releases/sb0632
- https://kurdfile.com/urgent-appeal-for-sherwan-sherwanis-life/
- https://www.b360nepal.com/targeting-iran-us-tightens-iraqs-dollar-flow-causing-pain
- https://www.alestiklal.net/en/article/salem-omeid-the-shadowy-iraqi-tycoon-smuggling-iranian-oil-worldwide
- https://www.aljazeera.com/news/2026/9/7/iraq-faces-sovereignty-test-as-us-led-military-coalition-exit-nears
- https://home.treasury.gov/news/press-releases/sb0492
- https://www.jpost.com/middle-east/article-907597
- https://hawarnews.com/en/syrian-reform-movement-warns-against-sectarian-and-nationalist-tensions