US Strikes Deepen Iraq's Iran-Backed Militia Crisis

These militias, many designated as terrorist organizations by the U.S., claim dozens of attacks against the U.S. presence in Iraq since late February 2026. Despite Baghdad's attempts to balance relations with Washington and Tehran, Iran's influence through these groups is pulling Iraq into wider regional conflict.

The PMF, an official Iraqi security institution, receives a $3.5 billion government budget and generates over $1 billion annually through illicit activities like oil smuggling, leveraging its official status to penetrate political and economic sectors. The U.S. Treasury blacklisted the PMF-owned Muhandis General Company in October 2025 for diverting government funds.

This ongoing conflict has seen militias kill at least 600 American servicemembers between 2003-2011 and three in Jordan in January 2024. The situation poses a critical test for Iraq's future government and the U.S.'s commitment to countering Iranian influence, highlighting persistent instability and geopolitical risk in the region.