In a social media statement, U.S. officials said they were seeking information on Al-Saraji, also known as Abu Alaa Al-Walai, citing his leadership of the group, which Washington has designated as a terrorist organization.

Authorities said the group has carried out attacks against Iraqi civilians, U.S. diplomatic facilities, and American military personnel in Iraq and Syria.The department said individuals providing credible information could be eligible for relocation in addition to the financial reward, as part of efforts to disrupt the activities of Iran-aligned militias operating in the region.

Kataeb Sayyid Al-Shuhada has been linked to attacks targeting the U.S. embassy in Baghdad, facilities at the capital’s international airport, and oil infrastructure operated by foreign companies. The group operates within Iraq’s broader network of armed factions aligned with Tehran.

Al-Saraji is also reported to hold a position within Iraq’s Coordination Framework, a Shiite political alliance that commands a parliamentary majority, underscoring the overlap between armed groups and political structures in the country.

The move comes as Iraq faces renewed instability linked to the wider regional conflict that escalated following U.S. and Israeli strikes on Iran in late February, drawing in Tehran-backed factions across the Middle East.

Earlier this month, Washington announced a similar reward targeting a senior figure in Kataeb Hezbollah, another powerful Iran-aligned militia, following the temporary abduction of a U.S. journalist.

U.S. officials have also increased pressure on the Iraqi government to curb the influence of such groups, with reports indicating the suspension of certain financial transfers and security-related funding as part of broader policy measures.

The Wall Street Journal reported that the halted transfer involved funds generated from Iraqi oil revenues, while also citing a broader pause in financial flows and security assistance following strikes on U.S. interests in Iraq by groups expressing support for Iran.

An Iraqi government official told AFP that only one shipment had failed to arrive, attributing the delay to logistical constraints and airspace closures linked to the ongoing regional conflict. A central bank official separately said dollar transfers had slowed due to flight suspensions and security concerns but stressed that Iraq maintains sufficient reserves and has not requested additional funds.

However, an Iraqi security official confirmed that Washington had suspended elements of its security cooperation, including programs tied to training and counterterrorism operations.

U.S. State Department spokesman Tommy Pigott acknowledged Iraqi efforts to respond to attacks but said that support for militia groups by some political actors was harming bilateral relations. He said the United States expects Iraq to take immediate steps to dismantle Iran-aligned factions and warned that attacks on U.S. interests would not be tolerated.

The State Department recently summoned Iraq’s ambassador in Washington to condemn attacks, including an ambush on U.S. diplomats in Baghdad on April 8. U.S. officials did not directly comment on the reported cash transfer decision, and the Treasury Department declined to respond.

Iraq has been drawn deeper into regional tensions, with Iran-backed groups carrying out rocket and drone attacks targeting U.S. diplomatic and military sites, including the embassy in Baghdad and facilities in Erbil, where coalition forces are stationed.

Most attacks have been intercepted, according to officials.The United States retains significant financial leverage over Iraq, as revenues from Iraqi oil exports are largely held at the Federal Reserve Bank of New York under arrangements established after the 2003 U.S.-led invasion that removed former leader Saddam Hussein.

According to the New York Times, the suspension of funding also affects programs supporting Iraq’s military and efforts against the Islamic State group, a cornerstone of U.S.-Iraq security cooperation since the militant group’s territorial expansion in 2014.

In a parallel diplomatic effort, Esmail Qaani, head of Iran’s Quds Force, visited Baghdad for talks with Iraqi officials and armed faction leaders aimed at addressing regional de-escalation and its implications for Iraq.

Pro-Iran armed groups announced earlier this month a temporary halt to attacks following a ceasefire agreement between the United States and Iran, though tensions remain elevated across the region.