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.

Sharaa, whose forces ousted longtime ruler Bashar Assad late last year, is set to meet U.S. President Donald Trump at the White House on Monday. The visit marks the first by a Syrian head of state to the United States since the country’s independence in 1946, analysts said.

The interim Syrian leader previously met Trump in Riyadh in May during the U.S. president’s regional tour.

Washington’s envoy to Syria, Tom Barrack, said earlier this month that Sharaa was expected to sign an agreement for Syria to join the international U.S.-led coalition against the Daesh (Islamic State) group.

According to a diplomatic source in Damascus, the United States also plans to establish a military base near the Syrian capital “to coordinate humanitarian aid and observe developments between Syria and Israel.”

Delisting and Diplomatic Shifts

The U.S. State Department’s decision to remove Sharaa from the terrorism blacklist on Friday had been widely anticipated.

State Department spokesman Tommy Pigott said Sharaa’s government had made progress in addressing key American demands, including cooperation on locating missing U.S. citizens and eliminating any remaining chemical weapons stockpiles.

“These actions are being taken in recognition of the progress demonstrated by the Syrian leadership after the departure of Bashar Assad and more than 50 years of repression under the Assad regime,” Pigott said.

He added that removing Sharaa from the blacklist would promote “regional security and stability as well as an inclusive, Syrian-led and Syrian-owned political process.”

Crackdown on Daesh

Syria’s interior ministry announced on Saturday that it had carried out 61 raids and made 71 arrests in a “proactive campaign to neutralize the threat” of Daesh, according to the state-run SANA news agency.

The ministry said the operations targeted suspected Islamic State sleeper cells across several provinces, including Aleppo, Idlib, Hama, Homs, Deir ez-Zor, Raqqa, and Damascus.

Following his arrival in Washington, Sharaa met with representatives of Syrian community organizations in the U.S. capital, Syrian media reported.

In a lighthearted moment ahead of his departure, Syrian Foreign Minister posted a video on social media showing Sharaa playing basketball with U.S. CENTCOM Commander Gen. Brad Cooper and Kevin Lambert, head of the international anti-Daesh coalition in Iraq, with the caption: “Work hard, play harder.”

From Rebel Commander to Statesman

Sharaa’s visit to Washington follows his appearance at the United Nations General Assembly in September — his first trip to U.S. soil — where he became the first Syrian president in decades to address the assembly in New York.

On Thursday, the U.S. led a Security Council vote to lift U.N. sanctions against him.

Once affiliated with Al-Qaeda, Sharaa formerly led the militant group Hayat Tahrir Al-Sham (HTS), which was delisted as a terrorist organization by Washington in July.

Since seizing power, Syria’s new leadership has sought to distance itself from its extremist roots and project a more moderate, internationally acceptable image.

“The White House visit is further testament to the U.S. commitment to the new Syria and a hugely symbolic moment for the country’s new leader, who thus marks another step in his astonishing transformation from militant leader to global statesman,” said Michael Hanna, U.S. Program Director at the International Crisis Group.

Reconstruction Challenges Ahead

Sharaa is expected to seek international funding for Syria’s post-war reconstruction during his visit. The country faces enormous economic and humanitarian challenges after 13 years of civil conflict.

In October, the World Bank estimated the cost of rebuilding Syria at a “conservative best estimate” of $216 billion.

As Washington and Damascus cautiously rebuild diplomatic ties, Sharaa’s visit signals what many observers see as a historic turning point — both for Syria’s reemergence on the world stage and for a region long defined by conflict and isolation.