Former Iraqi PM Criticizes U.S. Treasury Sanctions as ‘Humiliating’ Directives

Former Iraqi Prime Minister Adil Abdul-Mahdi has publicly criticized the U.S. Treasury’s Office of Foreign Assets Control (OFAC) for imposing what he characterized as humiliating directives on Iraq, according to reports from Iranian news outlets ^[1][2]. The statement underscores escalating tensions between Baghdad and Washington over the scope and nature of American economic sanctions affecting Iraqi sovereignty and regional engagement.

Abdul-Mahdi, who served as Prime Minister from October 2018 until May 2020, described OFAC’s actions as an affront to Iraqi dignity, framing the restrictions as external pressure constraining Iraq’s ability to conduct independent economic policy ^[1]. The criticism emerges amid broader regional realignment, where Iraq navigates competing pressures from the United States, Iran, and Gulf states.

The timing of Abdul-Mahdi’s remarks coincides with other significant developments in U.S.-Iraq relations. In late September 2026, the U.S. Treasury Department issued a limited authorization for Iraqi Airways to operate flights between Najaf and Iran, facilitating religious pilgrimages for Iranian passengers. The authorization, valid until October 28, 2026, included restrictions prohibiting the transport of large amounts of cash, goods, or shipments, illustrating the granular control OFAC exercises over Iraqi commercial activity ^[3].

Iraq has long occupied an uncomfortable position in regional geopolitics. As a country hosting significant U.S. military presence while maintaining deep economic and security ties to Iran, Baghdad faces constant pressure to balance competing interests. Sanctions regimes targeting Iran’s financial system have spillover effects on Iraq, constraining trade, banking relationships, and investment flows that Iraqi officials argue are essential for economic recovery and development.

Abdul-Mahdi’s public rebuke reflects frustration among Iraqi political elites over what they perceive as Washington’s unilateral imposition of economic constraints without sufficient consultation or consideration for Iraqi economic interests. The characterization of OFAC directives as “humiliating” suggests a deeper grievance about Iraq’s agency and sovereignty in managing its own foreign economic relationships.

The statement was reported by Tasnim News Agency, an outlet associated with Iran’s Islamic Revolutionary Guard Corps, which may amplify anti-American perspectives in its coverage ^[1][2]. Nevertheless, similar frustrations have been expressed by other Iraqi officials regarding the burden of U.S. sanctions enforcement on the Iraqi economy.

These tensions occur against a backdrop of broader Middle Eastern volatility. Italy completed its 12-year military presence in Iraq in late September 2026, withdrawing its final troops and marking the end of a significant Western military commitment to the country ^[3]. The departure underscores shifting dynamics in Iraq’s security partnerships and the evolving role of external powers in the region.

For Iraq’s government, balancing U.S. security partnerships with economic restrictions and Iranian regional influence remains a central strategic challenge. Abdul-Mahdi’s criticism signals that this balancing act is becoming increasingly difficult, with Iraqi leaders more willing to publicly challenge American economic policies that constrain Baghdad’s autonomy.