Iraq is caught in an ever-tightening vise. The US Treasury recently blocked the delivery of nearly half a billion dollars in US banknotes to Iraq’s central bank, proceeds from Iraqi oil sales that are held by the Federal Reserve Bank of New York. The US said it wants Iraq to dismantle Iranian proxies in the country, who claimed responsibility for attacks on a US air base and a US embassy in Baghdad last month. Yet as GZERO’s Zac Weisz reported last week, Iraq still retains a diplomatic and economic relationship with Iran, and desperately wants to remain neutral in this war.

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U.S. and Saudi flags flutter along a highway of Riyadh, as pictured through the glass of a car, ahead of the arrival of U.S. President Donald Trump to Riyadh, Saudi Arabia May 12, 2025.
REUTERS/Hamad I Mohammed/File Photo

The US-Saudi nuclear deal struck this week would be contingent on the Kingdom joining the Abraham Accords, Trump announced