US demands Iraq distance itself from Iran and rein in the Iran-linked Iraqi militias that have been behind recent attacks targeting US interests, via NYT

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US demands Iraq distance itself from Iran and rein in the Iran-linked Iraqi militias that have been behind recent attacks targeting US interests, via NYT

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  • The State Department declined to comment specifically on the move, but said Washington has demanded the Iraqi government crack down on militias supported by Iran, including some with ties to officials in the Baghdad government.

Context

The US government's insistence that Iraq distance itself from Iran and curb its influence over militias can heighten tensions in the region, potentially impacting energy markets and safe-haven assets like gold. This demand may lead to increased volatility in the Middle East, influencing market sentiment and possibly the dollar if geopolitical risks escalate. Traders should watch for reactions in oil prices and currencies such as the JPY and GBP, which could respond to shifts in risk appetite.

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