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Trump admin warns Iraq over Iran terror proxies as US reportedly blocks cash payments

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The Trump administration has reportedly ramped up its punitive measures to compel Iraq to disband Iranian regime-backed militias known as the Popular Mobilization Force (PMF) that form part of its government after sustained attacks on U.S. personnel and facilities.

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Amid a tenuous ceasefire between the U.S. and the Islamic Republic of Iran, the administration tightened the screws on Iraq by stopping U.S. dollar shipments to Baghdad. The growing disagreements over policy between the U.S. and Iraq could lead to weakening Iran’s presence in the region and advance U.S. war aims against Tehran.

In a statement against Iraq’s government, a State Department spokesperson told Fox News Digital, «The United States has consistently been clear we will take all measures to counter Iran’s destabilizing activities in Iraq, protect U.S. interests against Iran-aligned terrorist militias in Iraq, and make clear our concerns about the Iraqi government’s failure to prevent this terrorism.»

US WARNS IRAQ MUST ACT AGAINST IRAN-BACKED MILITIA ATTACKS ON AMERICAN ASSETS

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An explosion occurred near the U.S. Consulate and Erbil International Airport, where a U.S. military base is located, in Erbil, Iraq, on March 12, 2026, causing fire and thick smoke to rise following the blast. (Ahsan Mohammed Ahmed Ahmed/Anadolu)

The spokesperson added that «While we acknowledge the efforts of Iraqi Security Forces to respond to terrorist attacks by Iran-aligned militia groups, we continue to emphasize that the Iraqi government’s failure to prevent these attacks while some elements associated with the Iraqi government continue to actively provide political, financial, and operational cover for the militias adversely impacts the U.S.-Iraq relationship. The United States will not tolerate attacks on U.S. interests and expects the Iraqi government to immediately take all measures to dismantle the Iran-aligned militia groups in Iraq.»

The Wall Street Journal first reported last week about the security and financial penalties imposed on Iraq. According to the report, the U.S. halted security cooperation programs with Iraq’s military and stopped «a cargo-plane delivery of nearly $500 million in U.S. banknotes, the proceeds from Iraqi oil sales from Federal Reserve Bank of New York accounts.»  

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The newspaper said it was the second blocked delivery of dollars to the Central Bank of Iraq since the start of the U.S.-Israel war on Feb. 28 against Iran. 

The Treasury Department declined to comment on the blocked payments.

Iraqi security forces standing guard during a funerary procession in Baghdad

Iraqi security forces stand guard during a funerary procession in Baghdad on March 8, 2026, for a slain member of the Popular Mobilisation Forces killed in a U.S.-Israeli airstrike in Mosul the previous evening. (Ahmad Al-Rubaye/AFP)

An Iraqi official told Fox News Digital that «With regard to relations with the United States, Iraq views them as an important partnership based on shared interests and cooperation. The two sides have fought together in a decisive battle against ISIS, reflecting the depth and significance of this relationship.»

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In reference to the pro-Iran militias, the Iraqi official said, «As for the issue of armed factions, it is important to note that the Iraqi reality is highly complex, with overlapping political, security and social dimensions. Some of these factions also possess political and popular influence. Accordingly, addressing this issue requires careful and gradual approaches grounded in a deep understanding of the domestic context, in a way that strengthens state authority and ensures that weapons are confined to the hands of the state while maintaining internal stability.»

TRUMP THREATENS TO END IRAQ SUPPORT OVER AL-MALIKI COMEBACK BID TIED TO IRAN INFLUENCE

A billboard featuring a photo of Ali Khamenei along a street in Baghdad

A billboard featuring a photo of Iran’s supreme leader Ali Khamenei is seen along a street in Baghdad on March 9, 2026. (Murtadha Al-Sudani/Anadolu)

The official added that «External measures that fail to take into account the particularities of this reality may lead to counterproductive outcomes and negatively affect internal balances, which would not serve the stability efforts undertaken by Iraq and its partners, foremost among them Washington.»

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The PMF is an umbrella organization of militias largely loyal to the Islamic Republic of Iran — the world’s worst state-sponsor of terrorism, according to the State Department. Members of the PMF have launched attacks on U.S. assets in Iraqi Kurdistan and against Iraqi Kurds — a valuable U.S. ally in the Mideast.

A senior Kurdish official told Fox News Digital, «The dollar pause is part of the nuclear option in the Treasury Department, and the Americans have always been reluctant to leverage it. The Iraqis, meanwhile, have been cruel to their partners — Americans and the KRG [Kurdish Regional Government], as this war has shown — and now Washington is drawing a red line.»

The Kurdish official said, «They’ve made it clear things will only get worse for Iraq if militias resume attacks against U.S. interests, including in the Kurdistan Region. It’s high time the Americans pulled this lever; for too long, it has allowed Iran to pick a premier and dictate the rules, despite repeated encouragement to veto Iran’s cut-outs in Iraq.»

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Both Iraqi and Kurdish officials said the government is in flux as the differnt sides position themselves to select a new Iraqi prime minister.

IRAQI STATE BANK ACCUSED OF PROCESSING PAYMENTS FOR HOUTHI TERRORISTS WHO DISRUPT RED SEA COMMERCE

Smoke rising from the U.S. embassy building in Baghdad

Smoke rises from the U.S. embassy building in Baghdad, Iraq, on March 14, 2026, following an attack on the diplomatic mission. (Ali Jabar/AP)

The Trump administration opposes the return of former Iraqi Prime Minister Nouri al-Maliki because of his close ties to Iran. 

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The Kurdish official stressed the role of the majority Shiite population in Iran: «In the end, though, it’s still the Shia house that chooses the premiership. They have some latitude, but ultimately, they will select a candidate acceptable to both Iran and the United States. That’s the game — and America has always reacted to Iran’s game. This time, however, Washington appears intent on influencing the outcome rather than just observing it.»

The official added, «This matters especially because Iraq depends on oil, and its proceeds are deposited in the U.S. Federal Reserve and American banks. How Washington behaves vis-à-vis those deposits influences the process and reconfigures the balance within the Shia house. It matters enormously.»

Entifadh Qanbar, a former spokesman for the deputy prime minister of Iraq, warned that there is a pressing need for the Iraqi Prime Minister Mohammed Shia’ al-Sudan to swiftly dismantle the PMF because they represent a clear and present danger to the U.S. Embassy in Baghdad.

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Iraqi Shiite men holding pictures of Ayatollah Ali Khamenei during a gathering in Najaf

Iraqi Shiite men hold pictures of Iranian Supreme Leader Ayatollah Ali Khamenei during a symbolic funeral in Najaf, Iraq, on March 1, 2026. (Anmar Khalil/AP)

He told Fox News Digital, The Iraqi government also provides these groups with state identification cards, vehicles, and official government license plates under the cover of the PMF structure. This allows them to enter Baghdad’s high-security Green Zone at will and threaten the U.S. Embassy or any Iraqi state institution.»

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To underscore the dangers of the PMF, the U.S. Department of Justice announced on Monday a $10 million bounty on the terrorist leader of the pro-Iranian militia Harakat Ansar Allah al-Awfiya (HAAA).
 

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The U.S. embassy on Monday wrote on X that the pro-Iran militia «Harakat Ansar Allah al-Awfiya (HAAA) terrorists have launched attacks across Iraq and the region, including the April 8 ambush of U.S. diplomats near the Baghdad International Airport.  HAAA terrorists continue to undermine Iraqi sovereignty while threatening the safety and security of both Iraqi and U.S. civilians.  We will not tolerate attacks on U.S. interests and expect all measures will be taken to dismantle Iran-aligned terrorist militia groups in Iraq.»
 



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Former House intel leader points to Dem rhetoric ‘encouraging’ violence; eighth man charged in UFC terror plot

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An eighth person was charged in connection with a thwarted plot targeting the Freedom 250 Ultimate Fighting Championship (UFC) event at the White House, as a former key lawmaker, ex-FBI agent and current candidate for Senate warned that escalating rhetoric on the left is stoking violence.

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«They’re calling people Nazis and anti-American,» former House Intelligence Committee Chair Mike Rogers, who is running for Senate in Michigan, told Fox News Digital. «This No Kings notion. People are destroying your government and your way of life. It gives people who are already out there a little bit of permission to take the next step, and they’ve got to control their rhetoric on this.»

Rogers said Democrats are «encouraging» people to move beyond «normal political discourse» and into violent attacks. All eight suspects are accused of conspiring to use explosive-laden drones to trigger a mass evacuation of the June 14 event before directing fleeing crowds toward pre-positioned shooters, with a «second wave» planned to target the White House gate, FBI officials previously told Fox News Digital.

«They are encouraging a lot of people to get worked up to cross that line between what would be normal political discourse into radical, aggressive political behavior, including attempted murder, which you just saw in the UFC fights,» Rogers said.

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FBI DISRUPTS ALLEGED EXPLOSIVE-DRONE PLOT TARGETING WHITE HOUSE UFC EVENT, OFFICIALS SAY

The five suspects charged in an alleged plot targeting President Donald Trump and other officials during the UFC Freedom 250 event at the White House. From left: Daniel K. Eskridge, Abraham Hermosillo Alvarez, Bryan Omar Roa, Michael Alan Thomas and Tycen C. Proper. (Jacquelyn Martin/Pool/Getty Images)

Rogers, a former FBI special agent, is running in Michigan’s Republican Senate primary on Aug. 4 for the seat being vacated by retiring Sen. Gary Peters.

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Rogers said «self-radicalized» individuals are harder to identify, but praised law enforcement for stopping the alleged plot in time.

AMERICAN YOUTH RADICALIZED ONLINE, BUSTED IN SUSPECTED TERROR PLOTS AFTER HATING COUNTRY ON SOCIAL MEDIA

«That self-radicalization can be really dangerous,» he said. «It causes somebody to get in the car, drive, run over somebody or, you know, do some other act of violence.»

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According to the Washington state complaint, the suspects allegedly used a Telegram chat to conspire to obtain multiple drones capable of carrying heavy explosive payloads, while federal investigators said they also acquired firearms, ammunition, ballistic gear and other tactical equipment in preparation for the attack.

The plotters allegedly met around March through a TikTok community before moving to encrypted Signal chats, according to the complaint, and later agreed to commit murder on White House grounds and in the surrounding area during the UFC Freedom 250 event, prosecutors said.

RISING ANTISEMITIC VIOLENCE, TERROR ATTACKS IN US SPUR HOUSE HOMELAND SECURITY COMMITTEE HEARING

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A woman gathering children outside Temple Israel synagogue as law enforcement respond

A woman gathers children as officers respond to a call at Temple Israel synagogue in West Bloomfield Township, Mich., March 12, 2026. (Corey Williams/AP Photo)

The alleged plot was eventually foiled with the help of a tip from the mother of one of the suspects.

Pointing to a recent attack on a Michigan synagogue, Rogers said the rhetoric can lead some people to believe political violence is «okay.»

«In Michigan, we had an individual who decided that it was okay to drive a car full of explosives into a synagogue where 130 schoolchildren were being educated and tried to blow himself up,» he said.

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In that March attack, Ayman Mohamad Ghazali allegedly crashed his pickup into a West Bloomfield synagogue with more than 100 children inside before officers fatally shot him. Officials previously said the attack came after several of his family members were killed in Lebanon during the country’s war with Israel, and he became radicalized by Iran-backed Hezbollah.

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Rogers said social media has contributed to political violence, saying the violent rhetoric plastered online is «very, very concerning.»

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«All of that activity is fed online and through the internet, through conversations and through this heated and wrong-headed violent rhetoric, and their violent terminology is very, very concerning,» he said.

Fox News Digital’s Morgan Phillips, Michael Ruiz, David Spunt and Jake Gibson contributed to this report.

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Estados Unidos atacó “múltiples objetivos” militares del régimen iraní

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EEUU utilizó sus avanzados aviones de combate para atacar objetivos en Irán (U.S. Navy/Mass Communication Specialist 3rd Class Janae Chambers/Handout via REUTERS)

El Comando Central de Estados Unidos (CENTCOM) confirmó haber lanzado una serie de ataques contra “múltiples objetivos” militares en Irán este sábado por la noche, bajo órdenes directas del presidente Donald Trump.

Según un comunicado oficial, la operación se realizó en respuesta a una serie de incidentes recientes que han elevado la tensión en el estratégico estrecho de Ormuz.

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De acuerdo con el anuncio de CENTCOM, la acción militar se produjo después de que, durante la mañana, un dron iraní impactara contra el buque petrolero M/T Kiku, de bandera panameña. El incidente ocurrió a las 4:30 a.m. hora del este de Estados Unidos, mientras la embarcación transportaba más de dos millones de barriles de crudo a través de aguas próximas al estrecho.

El organismo estadounidense detalló que el régimen de Irán había recibido la oportunidad de respetar un acuerdo de alto el fuego tras un ataque previo contra el buque M/V Ever Lovely, pero optó por continuar con sus acciones ofensivas.

“Las fuerzas de CENTCOM lanzaron ataques hoy en respuesta directa a la persistente agresión iraní contra la navegación comercial”, señala el comunicado. Según el parte militar, los aviones estadounidenses dirigieron sus acciones contra instalaciones de vigilancia, sistemas de comunicación, sitios de defensa aérea, depósitos de drones y capacidades de colocación de minas pertenecientes a las fuerzas iraníes.

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EEUU lanzó un nuevo ataque contra objetivos del régimen iraní (US CENTCOM via X via REUTERS)
EEUU lanzó un nuevo ataque contra objetivos del régimen iraní (US CENTCOM via X via REUTERS)

Medios iraníes informaron un rato antes sobre múltiples explosiones en las regiones de Sirik y Qeshm, en la zona iraní del estrecho de Ormuz, durante la noche del sábado al domingo. La televisión pública IRIB citó a una “fuente militar informada” que atribuyó las detonaciones al impacto de proyectiles sobre una torre de comunicaciones en la localidad de Taherui. El mismo medio reportó daños en la zona de Masan, en la isla de Qeshm, próxima al puerto estratégico de Bandar Abbas.

Este sábado temprano, el Gobierno de Bahréin denunció que fue atacado por “varios drones iraníes”, mientras que Teherán aseguró que tuvo como objetivo “bases estadounidenses”, sin precisar dónde, en una nueva violación del memorando de entendimiento firmado entre Irán y Estados Unidos.

El Ministerio de Exteriores bahreiní confirmó el ataque perpetrado hoy “contra su territorio por varios drones iraníes, en una flagrante violación de su soberanía, una amenaza flagrante a la seguridad de sus ciudadanos y residentes, y una clara violación de las normas y convenciones internacionales que prohíben atacar objetivos civiles y aterrorizar a personas inocentes”.

Bahréin denunció un ataque aéreo iraní ocurrido este sábado en medio de un repunte de la tensión regional
Bahréin denunció un ataque aéreo iraní ocurrido este sábado en medio de un repunte de la tensión regional

En un comunicado, responsabilizó “exclusivamente a Teherán de socavar los esfuerzos de paz” y reiteró que dicha paz “no se construye mediante la intimidación, que la seguridad no se conquista mediante la agresión, y que la determinación de Baréin es más fuerte que cualquier amenaza”.

Por su parte, el Centro de Operaciones de Comercio Marítimo del Reino Unido (UKMTO), vinculado al Ministerio de Defensa británico, confirmó que el sábado un proyectil no identificado impactó en el puente de mando de un petrolero, causando daños materiales pero sin afectar a la tripulación ni provocar un derrame.

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En su advertencia a los navegantes, el UKMTO recomendó a los buques que extremen la precaución en el área y reporten cualquier actividad sospechosa, al tiempo que elevó el nivel de amenaza a “sustancial”. Además, el organismo británico informó sobre la presencia de buques de guerra implicados en tareas de desminado en la zona.

Las fuerzas estadounidenses aseguraron que el tránsito comercial por el estrecho de Ormuz continúa y que las unidades militares de Estados Unidos permanecen “vigilantes, letales y preparadas” ante cualquier nueva escalada. El estrecho de Ormuz, uno de los principales corredores energéticos del mundo, ha visto en los últimos meses un incremento significativo de incidentes y choques entre fuerzas iraníes y occidentales, lo que mantiene en vilo a la comunidad internacional y a los mercados energéticos.

Irán anunció este sábado ataques contra posiciones norteamericanas en Medio Oriente
Irán anunció este sábado ataques contra posiciones norteamericanas en Medio Oriente

Esta mañana, la Guardia Revolucionaria iraní afirmó que atacó posiciones de las fuerzas estadounidenses cerca del estrecho de Ormuz, lo que disparó las tensiones en la zona en medio de los esfuerzos para un acuerdo definitivo de paz.

La Guardia denunció que Washington violó el memorando de entendimiento firmado el 17 de junio entre ambas partes para poner fin a la guerra y reabrir el estrecho de Ormuz.

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El Ejército estadounidense bombardeó el viernes por la noche instalaciones militares iraníes en la costa sur del país como represalia por el ataque del jueves de Teherán contra el buque mercante M/V Ever Lovely, con bandera de Singapur, mientras abandonaba el estrecho de Ormuz frente a la costa de Omán.

La Guardia Revolucionaria aseguró que la ofensiva iraní del jueves se debió a que el buque navegaba por una ruta no autorizada en el estrecho de Ormuz.

El ataque del jueves de Irán contra el buque mercante fue la primera acción militar registrada en la zona desde la firma del memorando, lo que, según el Comando Central de Estados Unidos (Centcom), “violó claramente el alto el fuego” y “socavó la libertad de navegación” en el estratégico estrecho de Ormuz.

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NY AG hopeful blasts Letitia James as Medicaid fraud recoveries collapse: ‘She’s not doing the job’

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Republican New York attorney general candidate Saritha Komatireddy is making Medicaid fraud a centerpiece of her campaign, charging that prosecutions have sharply declined under Attorney General Letitia James.

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Cracking down on Medicaid fraud has become a flashpoint issue in the country after investigators uncovered billions of dollars in alleged fraud tied to public assistance programs in Minnesota. The scandal pushed the Trump administration to make cracking down on fraud a higher priority, with Vice President JD Vance leading a federal effort. Now, Republican candidates in races across the country, including New York’s attorney general contest, are calling for states to do more to prosecute Medicaid fraud and recover taxpayer money.

In an interview with Fox News Digital, Komatireddy accused James of failing to aggressively pursue Medicaid fraud, saying taxpayers could be losing out on hundreds of millions of dollars in recoveries.

«They’re totally failing to prosecute Medicaid fraud, and you can look at that based solely on the record of Letitia James and her Democratic predecessors,» Komatireddy said. «This is not a partisan issue.»

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New York Attorney General GOP candidate Saritha Komatireddy blast AG James for failing to adequately investigate and prosecute Medicaid fraud. ((Will Waldron/Albany Times Union via Getty Images) Will Waldron/Albany Times Union via Getty Images)

NEW YORK REPUBLICANS CALL FOR INDEPENDENT FRAUD INVESTIGATION FOLLOWING MINNESOTA REVELATIONS

Komatireddy’s said Medicaid fraud recoveries have plummeted under James, falling from $168 million in 2019, her first year in office, to just $31 million in 2024, according to data from New York Attorney General’s annual reports.

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Before James took office, New York attorneys general routinely posted some of the nation’s largest Medicaid fraud recoveries. Under Eliot Spitzer, the Medicaid Fraud Control Unit recovered $243.6 million in 2006. Andrew Cuomo’s office then recovered $113.8 million in 2007, $263.5 million in 2008 and more than $283 million in 2009, totaling more than $660 million during his first three years as attorney general. And Cuomo’s successor, Eric Schneiderman, recovered more than $335 million in 2012 — the second-highest annual total in the unit’s history and its highest recovery in seven years.

«Even her Democratic predecessors used to bring in $200 to $300 million per year in fraudulent proceeds,» Komatireddy said. «When Tish James comes into office, it goes down to $20 to $30 million per year. According to her own year-end reports, she’s just decided not to do that part of the job.»

ALEX BERENSON: MINNESOTA WAS ONLY THE BEGINNING: NEW YORK’S MEDICAID GRIFT IS FAR WORSE

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Saritha--Komatireddy speaking

Republican candidate for New York Attorney General Saritha Komatireddy holds a news conference with state GOP lawmakers on increasing public transit safety in New York on Wednesday, April 29, 2026, at West Capitol Park in Albany, N.Y. (Will Waldron/Albany Times Union via Getty Images))

As New York recovers less money from Medicaid fraud each year under James, the state’s spending on the fraud recovery program has increased, from about $45 million in fiscal 2020 to $70 million in 2025.

«It used to be the case the New York Attorney General’s office would get around 100 criminal convictions a year, holding people who are stealing from Medicaid accountable,» Komatireddy said. «Under Tish James, that number is very low. There’s one year where she got eight criminal convictions.»

New York’s handling of Medicaid fraud has also caught the attention of the federal government. Earlier this year, Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz sent Gov. Kathy Hochul a letter asking for more information about how the state screens providers and fights fraud. Oz said the review is meant to help protect Medicaid beneficiaries and maintain public confidence in the program. New York was one of only three states — along with California and Minnesota — to receive the letter.

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READ: DR. OZ PUTS ALL 50 GOVERNORS ON NOTICE OVER BILLIONS LOST TO MEDICAID FRAUD

Komatireddy said reduced enforcement ultimately costs New Yorkers by increasing healthcare spending and reducing funds available for other state priorities.

«It’s New Yorkers who pay the price, because when people steal from Medicaid, that increases our healthcare costs,» she said. «When we are just letting a billion dollars go out the door over the course of her term, that’s money that we could be getting back as taxpayers.»

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Instead, Komatireddy said lawmakers are forced to seek additional revenue from taxpayers.

New York Attorney General Letitia James standing at a podium during a press conference

New York Attorney General Letitia James stands silently during a press conference at the office of the Attorney General in New York City on Dec. 15, 2025. (Michael M. Santiago/Getty Images)

«The folks in Albany keep thinking of new ways to take more money away from taxpayers,» she said. «If you had an attorney general who actually prosecuted fraud properly, you wouldn’t have to worry about a tax hike.»

Komatireddy pledged to strengthen the Medicaid Fraud Control Unit by adding 20 criminal prosecutors.

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Komatireddy, a former federal prosecutor who spent more than a decade in the U.S. Attorney’s Office for the Eastern District of New York and later served as chief of staff at the Drug Enforcement Administration, has framed the race as a choice between a career law enforcement prosecutor and an inept incumbent.

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«Like I said, we have to actually just do the job of attorney general,» Henry said. «That job involves prosecuting crime and fraud.»

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The New York Attorney General’s Office did not immediately respond to Fox News Digital’s request for comment.

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