Iraq fears 'collapse' for country if Trump blocks oil revenues

Amid escalating tensions between US and middle east, Iraqi officials fear ecomic 'collapse' if Washington imposes ditional sanctions. se penalties also include block of US-based account where Baghd keeps oil revenues that reportedly feed 90 per cent of Iraq's national budget. US President Donald Trump was angered by Iraqi parliament who voted to remove foreign troops from region along with nearly 5,200 American troops who have helped local soldiers in ir fight against Islamist extremists since 2014. 

Re - US Troops Clear Rubble From Iraq Base Days After Iran Strike

Central Bank of Iraq's account at Federal Reserve Bank in New York was established in 2003 after US-led invasion toppled Sdam Hussein. Under United Nations Security Council Resolution 1483, crippling global sanctions and oil embargo imposed on Iraq after Sdam's invasion of Kuwait were revoked and it also stated that all revenues from Iraqi oil sales would go to that account. An Iraqi official told an international ncy that Iraqi Prime Minister il Abdul-Mahdi received a 'threatening' call from US that it will 'block account' in New York.

Iraq is Organization of Petroleum Exporting Countries' (OPEC's) second-biggest crude producer and more than 90 per cent of country's budget derives from revenues generated only through oil. Iraq's revenue reached $112 million in 2019, refore, reportedly $1 to $2 billion in cash is flown in Iraq at least after every 30 days, from Fed account. se amounts are required by government for an official and commercial transaction. One Iraqi official told an international ncy that US decides to cut off se transactions, it 'means totally turning off tap' and or country's official said 'it would mean collapse for Iraq'. 

Re - Iraqi Journalist, Cameraman Shot De By Unidentified Gunmen In Basra

US rejects Iran's request

US has rejected Iran's request on January 10 of preparing American troops for pulling out from region. Seeking 'maximum pressure' on Iran, US also anunced ditional sanctions on Tehran responding to its attack on Iraqi bases housing US troops on January 8. attacks on military bases in Iraq were Iran's response to killing of its top commander Qassem Soleimani by Washington. 

sanctions imposed on Iran target, eight senior Iranian officials. Pompeo during press briefing reiterated that se officials were responsible for both government’s violence abro and crackdown on protesters at home. He said that US is striking “heart” of Iran’s “inner security apparatus”. se sanctions also target one of Supreme National Council and commander of Basij forces. 

Re - Iraq's Bal Air Base Housing US Troops Hit By 8 Katyusha Rockets, 4 Injured

Re - Iraq PM Meets UK And French Ambassors

(With ncy inputs)