Baghdad – Iraq’s oil revenues could be frozen under a new proposal from US Republican Congressman Joe Wilson. He made this statement on social media, calling for strong action against Iran-backed militias. These groups have been targeting American interests in Iraq’s Kurdistan Region.
On X, formerly Twitter, Wilson warned Iraqi Prime Minister Mohammed Shia al-Sudani. He demanded immediate steps to stop the attacks. Otherwise, Iraq could face financial consequences. Wilson specifically called for blocking Iraq’s oil revenues held in the US Federal Reserve.
He posted, “Attacks by Iran-backed Iraqi militias against US forces and American oil companies in the Kurdistan Region of Iraq will not be tolerated.” He urged al-Sudani to act quickly or “face serious consequences.”
This statement follows a series of attacks on oil infrastructure in northern Iraq. Over the past few weeks, nine drone strikes have disrupted oil operations. The attacks have damaged key facilities and forced production halts.
Iraq’s oil revenues play a central role in funding the country’s recovery. Since 2003, the US Federal Reserve has held Iraq’s oil export funds in a special account. The account, called the Development Fund for Iraq, helps manage the country’s earnings from oil and gas.
Initially, five percent of these revenues went toward compensating Kuwait. These payments covered damages from Iraq’s 1990 invasion. Iraq completed this process in 2022, after paying $52.4 billion in total.
Now, these same funds could become a tool for US pressure. Wilson’s threat to freeze the money raises tension between Baghdad and Washington. It also highlights concerns over Iran’s growing influence in Iraq.
Freezing Iraq’s oil revenues could severely impact government spending. It could also discourage foreign investors who already face instability.
Tensions remain high as US lawmakers push for accountability. The White House has not yet commented on Wilson’s statement. However, the proposal adds new urgency to Iraq’s need for internal security reforms.
