The new Central Bank of Iraq in the capital city of Baghdad.
Baghdad (IraqiNews.com) — Iraq has increased financial sanctions on Lebanon’s Hezbollah and linked persons and companies as Prime Minister Ali Al-Zaidi seeks stronger relations with Washington.
According to sources, the sanctions imposed by Iraq’s Economic Affairs Department and the Iraqi Fund for External Development include Hezbollah and associated entities on Iraq’s banking sanctions list, as part of the country’s implementation of amended Executive Order 13224, a US counterterrorism sanctions framework that aims to disrupt terrorist financing and logistical support networks.
The fresh restrictions also target people and networks accused of supporting the Islamic State, widening Baghdad’s attempts to combat extremist funding.
Asset freezes, bank transaction limitations, and other administrative measures are among the penalties aimed at preventing armed organizations and terrorists from accessing funding.
The decision comes as Iraq’s government seeks to enhance collaboration with the US on security and economic problems.
Prime Minister Ali Al-Zaidi’s recent visit to Washington, where he met with US President Donald Trump, highlighted Baghdad’s attempts to strengthen ties with its long-time security ally.
Analysts believe the penalties would be considered another sign that Iraq is aiming to minimize the influence of Iran-backed armed groups on official institutions while strengthening ties with Washington.
The policy adjustment comes as regional tensions rise after months of dispute between the US and Iran, which has affected oil markets and shipping via the Strait of Hormuz.
Iraq, whose economy is primarily reliant on crude oil exports, has been working to protect itself from the economic downturn while preserving stability and attracting international investment.
Neither Iraqi nor US officials responded to whether Washington coordinated the measures.