The United States has intensified pressure on Iraq to distance itself from Iran amid escalating tensions between Washington and Tehran. The move comes as Iraq, maintaining close relations with both countries, finds itself increasingly caught in the crossfire of their confrontation.

In a significant development, the United States has suspended cooperation and funding for Iraq’s security services, according to two Iraqi officials who spoke on Monday. This suspension includes halting joint counterterrorism operations against the Islamic State, along with training and logistical support for Iraq’s military forces. The Pentagon has declined detailed comment but issued a general statement affirming ongoing evaluations of security assistance to allies, ensuring alignment with U.S. priorities.

U.S. officials have specifically called on the Iraqi government to take decisive action against Iran-backed militias, some of which maintain ties with Baghdad officials and have been responsible for recent attacks targeting U.S. interests. The State Department emphasized that attacks on American assets will not be tolerated and urged Baghdad to dismantle these militia groups immediately.

The background to these developments involves a series of attacks since late February on U.S. facilities in Iraq, including the U.S. Embassy in Baghdad and military bases. Several incidents were claimed by Iran-aligned militias, following a U.S.-Israeli airstrike that killed three militia members. One attack on April 7 involved multiple drones and targeted U.S. diplomatic personnel, prompting the U.S. deputy secretary of state, Christopher Landau, to summon the Iraqi ambassador to Washington and issue strong condemnations.

The suspension of U.S. funding and cooperation coincides with political uncertainty in Iraq, where the formation of a new government remains unresolved. Hussein Allawi, a security adviser to Iraqi Prime Minister Mohammed Shia al-Sudani, confirmed the suspension would remain until a new government is installed. The exact timing of this process is still unclear.

The current Iraqi government includes powerful Shiite factions closely aligned with Iran, reflecting the country’s Shiite majority. These militias originated during and after the 2003 U.S. invasion, initially resisting American forces but later joining the coalition to fight the Islamic State. While many militias were integrated under national security frameworks, some hard-line groups remain outside state control and maintain strong Iranian ties.

Analysts caution that forcing Baghdad to sever ties with these militias risks destabilizing the fragile state. Ramzy Mardini, founder of Geopol Labs, pointed out that these armed groups are deeply embedded within Iraq’s military, political, and economic institutions, blurring the lines of authority and state control. He suggested that U.S. expectations for Baghdad to act as a unified and autonomous actor may be unrealistic.

Compounding the strained relations, the U.S. Embassy in Baghdad issued warnings of planned militia attacks on American citizens and closed consular services. This followed the April 1 kidnapping and subsequent release of American journalist Shelly Kittleson by Kataib Hezbollah, an Iran-aligned militia, which cited respect for Prime Minister al-Sudani’s negotiations in her release.

The tensions have intensified following the recent visit of General Esmail Ghaani, commander of Iran’s Quds Force, to Iraq. Ghaani reiterated Iran’s rejection of external interference in Iraqi affairs, indirectly criticizing the United States, and expressed gratitude for local support from Iraqi officials and religious authorities.

Since the 2003 U.S. invasion and the overthrow of Saddam Hussein, Iraq has remained politically fragile and heavily influenced by regional powers, particularly Iran. Tehran has leveraged the power vacuum left by the U.S. withdrawal to expand its influence through military and political channels within Iraq, complicating Baghdad’s balancing act between its Iranian neighbor and its strategic partner, the United States.