Why does the US control Iraq's oil revenues?

For over two decades, the oil revenues of Iraq have been managed through a financial system based primarily in New York. This arrangement, established following the US-led invasion of Iraq in 2003, was originally intended to safeguard Iraqi oil revenues from creditors and to assist in the reconstruction efforts. However, the system now provides the United States with significant control over Iraq's access to its own funds, a factor that Washington is increasingly leveraging to influence Baghdad's policies.

This control became particularly evident in April when the US blocked a shipment of approximately $500 million in cash to Iraq. The move came as part of Washington's pressure on the Iraqi government to curb Iran's influence and the activities of armed groups that are aligned with Tehran. Muayen al-Kadhimi, a former member of Iraq's parliamentary Finance Committee, criticized this decision at the time, urging the government to address what he described as the dominance of the US over Iraqi funds.