An Iraqi oil refinery. Photo: AFP via Getty Images.
US President Donald Trump has renewed Executive Order 13303, which places all of Baghdad’s oil revenues under his control in a New York Federal Reserve Bank account.
The executive order was initially signed following Washington’s illegal invasion of Iraq in 2003 and has been renewed annually since, citing ‘national security’ as the reason.
There was no White House press release on the matter, but the president issued an official communication to Congress on its renewal on 4 May 2026.
Why Does the US Still Control Every Penny of Iraqi Oil Revenues?
“The obstacles to the orderly reconstruction of Iraq, the restoration and maintenance of peace and security in the country, and the development of political, administrative, and economic institutions in Iraq continue to pose an unusual and extraordinary threat to the national security and foreign policy of the US,” Trump’s official notice reads.
It is “for this reason” that the order “must continue in effect beyond 22 May, 2026.”
Iraqi oil exports have surged in recent months, with Baghdad exporting about 600,000 tons of fuel oil through Syria over the past two months.
In a September 2024 piece for The Cradle, Swedish-Iraqi analyst Hussein Askary explains why the US “still controls every penny” of Iraq’s oil revenues, calling it a “financial and economic subjugation that undermines Iraqi sovereignty and denies it access to its own national treasure.”
Since then, Iran has remained a leading energy supplier to Iraq, and US sanctions and control over Iraqi finances have made it difficult for Baghdad to pay hefty energy debts owed to Tehran.
This debt stands at roughly $12 billion. Tehran and Baghdad have continuously held talks on the matter.
Over recent months, the White House has also increased pressure on Iraq to dismantle its resistance forces, which are backed by the Islamic Republic.
The Islamic Resistance in Iraq (IRI), a coalition of several Iraqi factions, was formed after the start of the genocide in Gaza and includes several Iran-backed resistance groups such as Kataib Hezbollah and Saraya Awliya al-Dam.
This coalition also carried out scores of operations against US bases during the 40 days of war imposed on Iran by Washington and Tel Aviv.
