US threatening Iraq over who runs the country

The White House has reportedly signaled cuts to Iraq’s oil-export revenues if former Prime Minister Nouri al-Maliki returns to power

The US has warned Iraq of possible economic repercussions if former Prime Minister Nouri al-Maliki returns to power, Bloomberg reported on Tuesday, citing sources.

Last month, Iraq’s Shiite bloc in parliament nominated the 75-year-old al-Maliki, whom Washington views as too close to Iran, for a third term, likely securing his return once a new president is elected. Al-Maliki served two consecutive terms as prime minister from 2006 to 2014 – the first leader to do so since the 2003 US-led invasion – and previously held other cabinet posts.

The White House has stepped up pressure on Baghdad in recent days, people familiar with the matter told the outlet, and warned that al-Maliki’s return could prompt financial measures, including limits on oil-export revenues.

The leverage dates back to the aftermath of the catastrophic US invasion of Iraq, which placed Iraq’s oil proceeds under US oversight and effectively gave Washington supervision over 90% of the country’s budget. Exports are deposited in an account at the Federal Reserve Bank of New York in the name of Iraq’s Finance Ministry and managed by the central bank, funding salaries, pensions, and government spending.

US President Donald Trump has warned that Washington would “no longer help Iraq” if al-Maliki returned to office, accusing him of pursuing “insane policies and ideologies.” Iran has reportedly urged its Iraqi political allies to resist US pressure.

Al-Maliki has denounced what he called Washington’s “blatant interference,” insisting that the choice of prime minister is a sovereign matter.

Under Iraq’s power-sharing system, the premiership is reserved for a Shiite politician, while the presidency and parliamentary speaker posts go to a Kurd and a Sunni respectively.

READ MORE: Trump threatens Iraq

The politician spent 25 years in exile and returned after the US toppled Saddam Hussein’s Sunni-led government. He participated in the US-backed “de-Baathification” program, which critics say fueled sectarian violence and Sunni radicalization.

The US invasion and its aftermath caused widespread violence and disruption across Iraq, with multiple surveys suggesting hundreds of thousands of deaths and long-term social and economic consequences.