US withdrawal from Iraq leaves its oil revenue control intact

US forces are withdrawing from their last bases in Iraq, an exit hailed as a victory by Iran and its allies, according to a report by Dawn. The departure comes after a war lasting over two decades in which 4,500 American personnel died.

However, since the 2003 invasion, the United States has maintained effective control over Iraq's oil revenues, providing Washington with significant leverage over Baghdad. This control stems primarily from the management of the funds through the Federal Reserve Bank of New York.

After the invasion, the US-led Coalition Provisional Authority established the Development Fund for Iraq at the New York Fed. The fund was designed to collect oil revenues for reconstruction and to shield the money from legal claims related to Saddam Hussein's former regime, Dawn reported.