The US has ramped up a series of behind-the-scenes pressure tactics on Iraq aimed at reducing Iranian influence across key sectors, according to three senior Iraqi officials who spoke to UK-based Al-Araby Al-Jadeed.

The campaign, referred to internally as the “disengagement from Iran,” has expanded beyond military concerns to encompass sweeping reforms in Iraq’s judiciary and financial systems, according to the media report published on September 24.

The push comes just one week after the US State Department designated four Iran-aligned Iraqi armed factions as terrorist organisations and after new efforts by other countries, including Saudi Arabia and Britain, engaging with the Al-Sudani premiership, signing billions in deals with Baghdad.

Officials say the US is now targeting Iraq’s banking sector with an oversight mechanism designed to prevent Iran from exploiting financial channels. Some banking institutions in Iraq have been linked with trade with Iran and have faced sanctions by US authorities. 

However, public and private banks are reportedly under near-total scrutiny by the US Treasury, with all international transfers routed through intermediary banks in Jordan and the UAE.

An Iraqi Foreign Ministry source confirmed that Washington is pressing for domestic trials of faction leaders accused of crimes against humanity and human rights violations. A member of parliament added that the dissolution or integration of armed groups into Iraq’s formal security apparatus is one of three core demands being pushed by the US.

In February, the US sanctioned five additional Iraqi banks, bringing the total to 28, citing illegal transactions with Iranian entities and links to money laundering and terrorism financing.

The pressure has also extended to Iraq’s energy sector. Washington recently blocked a plan to import Turkmen gas via Iran, and in March, the Trump administration revoked a longstanding sanctions waiver allowing Iraq to pay for Iranian electricity.

These measures fall under the United States' broader "maximum pressure" strategy targeting Iran, with the primary goal of curbing Tehran’s revenue streams and reducing its regional influence.

So far, neither Iranian nor American officials have publicly responded to IntelliNews' enquiries on the initial report.

Iranian President Masoud Pezeshkian, in a meeting with the leader of Iraq’s National Wisdom Movement in Tehran in early September, noted Iraq’s strategic importance in Iran’s regional policy, describing bilateral relations as “exceptional and strategic.”

Tehran has attempted to push back on US efforts, but hamstrung by its own sanctions and economic malaise, has suffered a rollback in influence in neighbouring Baghdad.

Tehran's influence in its Arab neighbour has weakened in the past year following the fall of the Assad regime in Syria to the Turkish-backed administration of Ahmed al-Sharaa and the decapitation of Hezbollah's leadership in its war with Israel. With the land route  

Earlier in August, Ali Larijani, Secretary of Iran’s Supreme National Security Council, travelled to Baghdad, where he signed a security agreement with Iraqi officials. According to unofficial reports, one of the key objectives of Larijani’s visit was to encourage Iraq’s Shiite political factions to advance the passage of the “Popular Mobilisation Forces (PMF) Bill” in parliament.

The proposed legislation aims to formalise the PMF’s role within Iraq’s official security structure. However, its review has been delayed due to opposition from certain political blocs and mounting external pressure—particularly from the US.