According to the report, the installation was built shortly before the outbreak of the US-Israeli war against Iran and operated with Washington’s knowledge. The base allegedly housed Israeli special forces personnel and functioned as a logistical and rescue hub for Israeli air operations targeting Iran.The Wall Street Journal said the site included search-and-rescue teams intended to recover Israeli pilots in the event aircraft were downed during missions over Iranian territory.

Reuters could not independently verify the report, and there was no immediate comment from Prime Minister’s Office of Israel following a request for response.The newspaper reported that the clandestine facility narrowly escaped discovery in early March after Iraqi state media cited a local shepherd reporting unusual military activity, including helicopter movements, in a remote desert area.

Iraqi security forces were subsequently dispatched to investigate, the report said, but Israeli forces launched airstrikes to prevent troops from approaching the site closely enough to expose the operation.The Wall Street Journal cited one source as saying the strikes were intended solely to keep Iraqi personnel at a distance from the outpost.

The report further stated that Iraq later filed a complaint with the United Nations alleging that foreign forces had conducted airstrikes on Iraqi territory and attributing the attack to the United States. However, the newspaper cited a person familiar with the matter who said American forces were not involved in the operation.

The alleged operation underscores the widening regional dimensions of the conflict between Israel and Iran, which has increasingly drawn neighboring states and strategic transit corridors into the confrontation.Iraq has repeatedly sought to avoid becoming a direct battleground in regional conflicts involving Iran, the United States and Israel, while balancing ties with Washington and Tehran amid persistent security pressures.

Citing U.S. officials familiar with the matter, the report said Trump concluded during a White House Situation Room meeting on Monday that both resuming bombing campaigns and fully stepping back from the conflict carried greater risks than maintaining a naval squeeze on Iran’s oil exports and shipping routes.

According to the report, Trump believes Iran is not negotiating in good faith and wants Tehran to suspend uranium enrichment for 20 years while accepting strict long-term restrictions on its nuclear activities. Officials said the administration views the blockade as a way to intensify pressure without immediately reopening large-scale military operations.

Trump signaled frustration publicly on Wednesday, writing on his Truth Social platform that Iran “can’t get their act together” and warning Tehran to “better get smart soon.”

“Iran can’t get their act together. They don’t know how to sign a nonnuclear deal.They better get smart soon!” Trump posted, alongside an image carrying the caption “NO MORE MR. NICE GUY!”The reported strategy would rely on the U.S. Navy continuing efforts to restrict vessels traveling to and from Iranian ports, further tightening pressure on oil exports that are central to Iran’s economy.

Analysts say the approach risks extending instability around the Strait of Hormuz, one of the world’s most critical energy transit routes.Oil markets reacted sharply to reports of a prolonged blockade, with Brent crude rising to a one-month high above $114 a barrel on concerns over sustained supply disruption and continued uncertainty over shipping through the Hormuz corridor.

The White House has not formally announced a policy shift, and Iranian officials have not publicly responded to the Wall Street Journal report.The decision suggests Washington may be preparing for a prolonged standoff in which active fighting remains limited but diplomacy remains frozen, leaving the conflict in what analysts describe as a “no-deal, no-war” phase.

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.

“There was some expectation of a phone call, but it didn’t happen,” a U.S. official told WSJ. “It was part of turning on the spigot [of Saudi oil]”.

It further stated that, Riyadh has signaled that its relationship with Washington has deteriorated due to Biden administration’s wrong policies towards the Gulf region. 

UAE also stands by the Saudi concerns about the restrained U.S. response to the recent missile strikes by Iran-backed Houthi terrorists in Yemen against the interests of UAE and Saudi Arabia.

Moreover, both the monarchies are concerned about the revival of the Iran nuclear deal, which doesn’t address their security concerns, and has entered into the final states of negotiations in the recent weeks.

However, Biden is running after the two gulf allies to repair the relations as the oil prices surge over $130 per barrel, which is for the first time in the 14 years. Saudi Arabia and UAE are the two key oil producers in the region that can pump millions of more barrels of more oil if they wish to, so that the crude market prices can calm down.

The National Security Council’s Middle East Coordinator Brett McGurk, and the State Department’s Energy Envoy Amos Hochstein, both traveled to Saudi Arabia in February to mend the ties with the Kingdom. Later, McGurk met with Sheikh Mohammed in Abu Dhabi in a bid to address UAE’s anger over the U.S. response to the Houthi attacks.

A U.S. official said, “the Biden administration has worked diligently to strengthen Saudi and Emirati missile defenses, and that America would be doing more in the coming months to help the two Gulf nations protect themselves. However, it may not be everything the two countries want, but U.S. is trying hard to address their security concerns”.

Meanwhile, Saudi Arabia and UAE have declined to pump more oil, while sticking to the production plan approved among the members of Organization of the Petroleum Exporting Countries (OPEC). The energy alliance with Russia has enhanced OPEC’s power and also brought the two gulf monarchies closer to Moscow.

Saudi Arabia and UAE started keeping away from United States after Biden publicly reprimanded Saudi Arabia’s legitimate action in aiding Yemen’s sovereignty against Iran-backed Houthi terrorism.

Biden also reversed the move taken by his predecessor Mr. Donald Trump, that put the Houthis on the America’s official list of global terrorists. Due to which, the efforts to broker a cease-fire deal between Yemeni forces and the Houthis were ruined.

UAE ambassador to United States Yousef Al-Otaiba said last week, that the relations between the two countries were strained. He said, “It is like any relationship. It has strong days where the relationship is very healthy and days where the relationship is under question. Today, we’re going through a stress test, but I am confident that we will get out of it and get to a better place”.

On the other hand, when Saudi Crown Prince was asked by The Atlantic magazine whether Biden misunderstood him or not. Prince responded, “Simply, I do not care”.