U.S. forces leave Iraq, but Washington retains leverage through oil revenues

Sep 30, 2026 00:04 (24d ago)

U.S. forces are set to leave their last bases in Iraq on Wednesday after more than two decades of war.
Iraq’s oil revenues provide about 90% of the state budget and remain held at the Federal Reserve Bank of New York.
U.S. dollar restrictions, including sanctions on Iraqi banks and individuals accused of laundering money for Iran, continue to influence Baghdad’s finances.

U.S. forces are set to withdraw from their last bases in Iraq on Wednesday after more than two decades of war following the 2003 invasion, during which hundreds of thousands of Iraqi civilians and 4,500 Americans died. Iran and its allies celebrate the departure, but Washington retains significant influence because Iraq’s oil revenues remain in custody at the Federal Reserve Bank of New York. Oil supplies about 90% of Iraq’s state budget, while U.S. restrictions on dollar flows and sanctions have shaped Baghdad’s financial policy as it seeks greater sovereignty amid pressure from Iran and President Donald Trump’s maximum-pressure campaign.