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Cash shortages grip Yemen despite currency stabilisation | Business and Economy News

Mukalla, Yemen – The Yemeni government’s measures to curb the devaluation of the Yemeni riyal have finally borne fruit, but they have created another problem: A severe liquidity crunch.

The government’s central bank, based in the southern city of Aden, has shut down unauthorised exchange firms it says were involved in currency speculation, centralised internal remittances under a controlled system, and formed a committee to oversee imports and provide traders with hard currency.

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These measures have helped curb the riyal’s freefall, from about 2,900 to the United States dollar months ago to about 1,500 today, a move that was initially welcomed. But the gains have been short-lived, as public frustration has grown over a worsening shortage of cash in riyals.

People across government-controlled cities such as Aden, Taiz, Mukalla and others have said they are facing an unprecedented shortage of Yemeni riyals in the market. Many, particularly those holding US dollars or Saudi riyals, said local banks and exchange firms are refusing to convert foreign currency, or are limiting daily exchanges to as little as 50 Saudi riyals per person, citing a shortage of local cash.

This has left many Yemenis unable to access cash or use their savings in hard currency at a time of mounting economic pressure, paralysing businesses and giving rise to a black market where traders exchange foreign currency at more unfavourable rates to the customer.

Businesses grind to a halt

Mohammed Omer, who runs a small grocery shop in Mukalla, said he has spent hours crisscrossing the city’s exchange firms trying to convert a few hundred Saudi riyals he received from customers. “I’ve gone from one exchange to another, and they refuse to exchange more than 50 riyals,” said Omer, a man in his early 50s with a salt-and-pepper goatee. “It’s a waste of time and effort – I’ve had to close my shop.”

Yemen has endured an economic meltdown for more than a decade, stemming from a war between the Saudi-backed government and the Iran-aligned Houthis that has killed thousands and displaced millions.

Alongside the fighting on the battlefield, the warring sides have targeted each other’s main sources of revenue, leaving both the Houthis and the government strapped for cash, struggling to pay public-sector salaries and fund basic services in areas under their control.

At a board meeting in March, the Central Bank in Aden said it was aware of the cash shortage and had approved several unspecified “short- and long-term” measures to address the problem, noting that it is pursuing “conservative precautionary policies” to stabilise the riyal and curb inflationary pressures.

Government employees have also complained that the cash-strapped Yemeni government is paying salaries in low-denomination banknotes – mainly 100 riyals – forcing them to carry their wages in bags.

Munif Ali, a government employee in Lahj, took to Facebook to express his frustration, posting a video of himself sitting beside large, tightly packed bundles of 100- and 200-riyal notes that he said he received from the central bank. Munif, like many Yemenis on social media, said traders are refusing to accept large quantities of low-value notes. “Merchants are refusing to recognise this,” Munif said, referring to the stacks of 100- and 200-riyal notes in front of him. “Legal action should be taken against them.”

People who have kept their savings in Saudi riyals, the de facto currency in parts of Yemen, as well as Yemeni expatriates who send remittances in hard currency to their families, and soldiers paid in Saudi riyals, are among those most affected by the cash shortage.

Finding workarounds

To cope with cash shortages and the refusal of exchange firms to convert hard currency, Yemenis have adopted a range of workarounds. Some rely on trusted shopkeepers who allow delayed payments, while others exchange foreign currency at local groceries or supermarkets, often at lower, unfavourable rates. Banks and exchange firms have also introduced online money transfers, which have helped ease the crisis for some.

In rural areas, where internet access is limited and exchange shops are scarce, the problem is even more acute.

Saleh Omer, a resident of the Dawan district in Hadramout, told Al Jazeera that he received a remittance of 1,300 Saudi riyals sent from Saudi Arabia. But the exchange firm that handed him the money refused to convert it into Yemeni riyals, citing a lack of cash, and advised him to try nearby shops.

With the official exchange rate at about 410 riyals to the Saudi riyal, a shopkeeper agreed – after repeated appeals – to exchange only 500 riyals, and at a lower rate of 400. “I nearly begged the shopkeeper to exchange 500 riyals,” Saleh said. To convert the remaining 800 riyals, he added, he would have to return another day and go from one shop to another. “We are suffering greatly just to convert Saudi riyals into Yemeni riyals.”

Connections matter

Well-connected individuals are often better positioned than others to navigate the cash shortage, with some relying on personal contacts at banks and exchange firms to access cash. Khaled Omer, who runs a travel agency in Mukalla, said most of his business transactions are conducted in Saudi riyals or US dollars. But when he needs Yemeni riyals to pay employees or cover utilities, he turns to a trusted contact at a local exchange firm. “We work with a money exchange trader when we need riyals to pay salaries or meet basic expenses,” Khaled told Al Jazeera. “Exchange companies say they are facing a liquidity crunch.”

On social media, Yemenis say some patients have been denied medication as health facilities refuse to accept payment in Saudi riyals, while exchange firms decline to convert the currency into Yemeni riyals.

In Taiz, Hesham al-Samaan said a local hospital refused to accept Saudi riyals from a relative of a patient, forcing him to roam the city in search of someone to exchange the money to pay for treatment. “Is there any justice for the people, oh government? Will anyone hold accountable those who refuse to exchange currency and exploit people’s needs?” al-Samaan wrote in a Facebook post that drew dozens of comments from others reporting similar experiences, including being denied medical services because they did not have local currency.

For traders who import goods from Saudi Arabia, the cash crisis has become something of a blessing in disguise, as Saudi riyals are increasingly available at discounted rates. A clothing trader in Mukalla told Al Jazeera that he accepts payments in both Yemeni riyals and Saudi riyals, partly to attract customers and partly to secure the foreign currency he needs for his business. “As a businessman who sells goods in Yemeni riyals, I benefit from the cash shortage,” he said on condition of anonymity. “Exchange companies that need local currency I hold sell me Saudi riyals at lower rates.”

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West Races to Break China’s Grip on Critical Minerals

The European Union and the United States are nearing a strategic agreement to coordinate the production and supply of critical minerals, according to reports.

The move reflects growing concern in Western capitals over the dominance of China in global supply chains for key resources such as rare earth elements, which are essential for modern technologies including electric vehicles, semiconductors, and defence systems.

What the Deal Involves

The proposed agreement is expected to take the form of a non binding memorandum of understanding, covering the entire lifecycle of critical minerals

Exploration and extraction
Processing and refining
Recycling and recovery

It also includes potential financial mechanisms such as minimum price guarantees designed to support non Chinese suppliers and reduce market volatility.

Beyond production, the deal emphasises coordination on standards, investment strategies, and joint projects, signalling a comprehensive approach rather than a narrow trade arrangement.

Strategic Motivation

At the heart of the initiative is a shared objective to reduce reliance on China’s mineral supply chains.

China currently dominates several stages of the critical minerals ecosystem, particularly processing and refining. This has given Beijing significant leverage over industries that underpin the global energy transition and advanced manufacturing.

For both the EU and the US, securing alternative sources is increasingly seen as a matter of economic security as well as geopolitical strategy.

Supply Chain Vulnerability

Recent global disruptions have exposed the fragility of supply chains, especially for materials concentrated in a small number of countries.

Critical minerals are particularly sensitive because their production is capital intensive, geographically concentrated, and difficult to scale quickly.

By coordinating efforts, the EU and US aim to build resilience against potential supply shocks, including those that could arise from geopolitical tensions or export restrictions.

Economic and Industrial Implications

The deal could reshape global competition in several ways

It may accelerate investment in mining and processing projects outside China
It could create new incentives for private sector participation through price stabilisation mechanisms
It may encourage the development of recycling industries to reduce dependence on raw extraction

At the same time, such measures could alter market dynamics, potentially leading to higher costs in the short term as new supply chains are developed.

Diplomatic and Trade Dimensions

The agreement also reflects a broader trend of economic alignment between the EU and the US on strategic industries.

Discussions between EU Trade Commissioner Maros Sefcovic and US Trade Representative Jamieson Greer have signalled a willingness to deepen cooperation not only on minerals but also on tariffs and trade standards.

This coordination could strengthen transatlantic ties while also reshaping global trade patterns, particularly in sectors tied to clean energy and high technology.

Implications

The emerging deal highlights several key shifts

A move toward resource security as a central pillar of economic policy
Increasing alignment between Western economies in response to strategic competition
Growing importance of supply chain resilience in global trade

It also underscores how access to raw materials is becoming as geopolitically significant as access to markets.

Analysis

The EU US critical minerals initiative reflects a structural shift in global economic strategy, where control over supply chains is increasingly viewed through the lens of national security.

Rather than relying on open global markets, major economies are moving toward coordinated frameworks that prioritise trusted partners and reduce exposure to geopolitical rivals.

China’s dominance in critical minerals has effectively transformed these resources into strategic assets, prompting a response that blends industrial policy with geopolitical alignment. The inclusion of mechanisms such as price guarantees suggests a willingness to intervene directly in markets to achieve strategic goals.

At the same time, the non binding nature of the agreement indicates a cautious approach, balancing ambition with flexibility. This allows both sides to advance cooperation without committing to rigid structures that could face political or economic resistance.

The broader implication is the gradual fragmentation of global supply chains into competing blocs. As countries prioritise security and resilience over efficiency, the global economy may become less integrated but more strategically segmented, with critical minerals at the centre of this transformation.

With information from Reuters.

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Masters 2026: Rory McIlroy tightens grip on Masters with record 36-hole lead at Augusta

It seems bizarre to say now given his dominant position, but there was a spell on Friday where you felt McIlroy was still not playing close to his best.

When McIlroy bogeyed the 10th, he dropped back alongside 2018 champion Reed on six under and his untidiness meant it was all to play for.

Some drives were being sprayed, some approaches were not as precise as they should have been.

At the end of his round, the statistics showed McIlroy ranked 90th in the 91-man field for accuracy off the tee.

Ultimately, it didn’t matter. His exceptional short game held his round together and when things did click into place on the tees and fairways, he motored through the back half in fabulous fashion.

After winning last year, there is not a melodrama every time he makes a bad shot. McIlroy has learned how to be patient around Augusta.

That seems to spell bad news for the rest of a leaderboard stacked with Green Jacket wearers, major title holders and Ryder Cup stars.

Staying even-tempered at the most famously punishing golf course in the world is a trait which two of the big names chasing McIlroy also recognise is necessary to succeed there.

Three-time runner-up Justin Rose, who is tied fourth, is targeting his own redemptive win after losing to McIlroy in last year’s sudden-death play-off and credits his own patience for his back-nine climb up the leaderboard on Friday.

“Early on things were tough out there. But I settled down and built the round back up,” said Rose, who is seven behind McIlroy after a three-under 69 on Friday.

“It’s a continuation of being on the leaderboard from last year and keeping the dream alive. I need to keep it as free as I can.”

Ireland’s Shane Lowry, who had a run of 14 successive pars, joined English pair – and victorious Ryder Cup team-mates – Rose and Tommy Fleetwood on five under par after two birdies in the final three holes.

“I was hitting good shots and just wasn’t converting but I was patient out there,” said Lowry, whose sole major win came at the 2023 Open.

But there is another contender, also from that European band of brothers, who has not yet learned how to stay calm at Augusta.

Tyrrell Hatton might have to learn quickly if he is going to push McIlroy.

The 30-year-old Englishman knocked in seven birdies on the way to a six-under par 66, seemingly carding the round of the day only to be matched by McIlroy.

“I definitely don’t stay calmer or more patient this week. If anything, I am probably more on edge,” said Hatton.

“I will just take each shot as it comes and see what we end up with.”

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Israeli measures tighten grip on Hebron’s Ibrahimi Mosque | Israel-Palestine conflict News

Hebron, occupied West Bank – Hebron’s Ibrahimi Mosque is no more than 50 metres from Aref Jaber’s home, in the neighbourhood that bears his surname, reflecting his family’s long history in the Palestinian city.

The 51-year-old has taken advantage of that proximity since his childhood, regularly praying at the mosque, one of the most important Islamic sites, and a Palestinian national symbol.

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But the Ibrahimi Mosque of Jaber’s childhood is not the one of today. A 1994 massacre of Muslim worshippers by the Israeli settler Baruch Goldstein killed 29 Palestinians. Instead of getting justice, Palestinians faced more restrictions in the aftermath of the attack.

Israeli settlers began establishing an illegal presence in Hebron, part of the occupied West Bank, in 1968, the year after Israel seized control of the Palestinian territory. The settlers have been working to grow their presence ever since, with increased support from the Israeli government.

After 1994, Israel began taking steps to, in effect, control the Ibrahimi Mosque – known to Jews as the Cave of the Patriarchs – by closing off large areas in Hebron’s Old City and the southern area surrounding the mosque, then dividing it between Muslims and a few hundred Jewish settlers, granting the latter the right to pray there.

This was followed by the signing of the Hebron Agreement with the Palestinian Authority in 1997, which stipulated the division of the city into two parts: H1, under Palestinian control, comprising 80 percent of the area, and H2, under Israeli control, comprising 20 percent, but including the Ibrahimi Mosque and the Old City.

Following this series of events, settlement activity intensified in the heart of Hebron. Settlers established illegal outposts within the Old City and began gradually expanding and seizing new homes under the protection of the Israeli army.

Meanwhile, Palestinians were subjected to closures, restrictions and repressive measures aimed at forcing them to leave the Old City, thus facilitating Israeli control over the mosque.

Man stands next to a barrier
Israeli forces have erected metal barriers throughout the neighbourhoods surrounding the Ibrahimi Mosque, restricting access for Palestinians [Mosab Shawer/Al Jazeera]

Neighbours of the Ibrahimi Mosque

Jaber had hoped that his children would pray at the mosque daily and become familiar with it, but Israeli measures prevented this.

He explained that since 1994, the southern gate of the mosque, which residents of his neighbourhood used for access, has been closed. They have instead been forced to take alternative routes, turning a journey of 50 metres into one that now spans almost three kilometres.

Things have gotten worse since the beginning of Israel’s genocidal war on Gaza in October 2023, when Israel also ramped up its attacks in the West Bank.

Israel tightened its grip on the mosque and its surroundings, closing more of the alternative routes.

“The difficulty of reaching the mosque is compounded by the procedures at the iron and electronic gates installed at its entrances and in its vicinity,” Jaber said. “We are subjected to searches, detention, and harassment without any justification, and often young men, boys, and even women are arrested.”

The Israeli government says that the restrictions are necessary for security reasons – to protect Israeli settlers whose presence in the West Bank’s most populous city is illegal under international law.

Jaber explained how the Israeli army closes barriers and gates around the mosque and the neighbourhoods that surround it for extended periods under security pretexts. Palestinian residents are not allowed to leave their homes, even to shop, while settlers are permitted to move freely throughout the Old City.

Israeli authorities also used the justification of the current conflict with Iran to close access to the Ibrahimi Mosque for Palestinians for six days from February 28, allowing it to reopen for a limited number of worshippers on March 6.

Alleyway with Ibrahimi Mosque visible
The Ibrahimi Mosque is an important Islamic holy site and a Palestinian national symbol, also holy to Jews who call it the Cave of the Patriarchs [Mosab Shawer/Al Jazeera]

Increased control

But these measures aren’t only aimed at restricting Palestinians in the vicinity of the mosque, but also seem to be an attempt to establish complete Israeli security control over it, with measures similar to those Israel employs at the Al-Aqsa Mosque in occupied East Jerusalem.

In Al-Aqsa, the third holiest site in Islam, renewable expulsion orders are used to prevent the entry of worshippers deemed troublesome. Searches are also regularly conducted at the gates of Al-Aqsa, as well as detentions, confiscation of identity cards and restrictions on entry to certain parts of the mosque compound.

Israel now regularly conducts similar actions at the Ibrahimi Mosque.

The Israeli army issued orders to remove Moataz Abu Sneineh, the director of the Ibrahimi Mosque, and other employees from the mosque for 15 days in January. The Palestinian Authority said that the orders were part of “an attempt to reduce their role in the administration and supervision of the Ibrahimi Mosque’s religious and administrative affairs”.

Israeli officials have also tried to push through construction work in the mosque without the approval of Palestinian officials.

On February 9, the Israeli cabinet approved the transfer of licensing, building and municipal administration powers in Hebron from the municipality to the Israeli Civil Administration, in addition to establishing a separate settlement municipality within the city.

The change, part of an internationally condemned Israeli push to increase control over the West Bank and make Israeli settlement easier, is seen as illegitimate and dangerous to the existing status quo, threatening freedom of worship and public order, according to a statement issued by the Hebron Municipality in response to the decision.

Abu Sneineh told Al Jazeera that Israel has transformed the mosque into something resembling a “military barracks” due to the stringent measures it imposes, which “aim to reduce the number of worshippers there”.

According to Abu Sneineh, the Israeli government interfered in the authority of the Ministry of Religious Endowments, and the call to prayer was prevented from being performed dozens of times a month. Worshippers were subjected to humiliating treatment at the mosque entrance, including beatings, verbal abuse and expulsion. Abu Sneineh said the measures were part of a systematic Israeli policy aimed at transforming the mosque into a Jewish synagogue.

“Israel is trying to impose a new reality by controlling the mosque and obstructing worshippers’ access to it, whether during Ramadan or at other times. After October 2023, the measures became even more stringent to erase the Islamic identity of the place, as if it were racing against time to seize control of it,” he added.

On February 28, coinciding with the start of Israeli-American strikes on Iran, the Israeli army expelled worshippers and staff from the mosque and informed them of its closure until further notice, just as it had done at Al-Aqsa Mosque in Jerusalem on the same day under the declared state of emergency measures.

The director of the Youth Against Settlements group and a resident of the Old City, Issa Amro, believes that the situation at the Ibrahimi Mosque is more dangerous than at Al-Aqsa Mosque because it has suffered from temporal and spatial division since 1994.

The “arbitrary” barriers, the closure of surrounding markets and main roads leading to it, and recently the closure of checkpoints in the southern area of the city – which includes the Old City and the Ibrahimi Mosque – prevent approximately 50,000 citizens from accessing it, along with the transfer of supervisory authority of parts of the mosque to the Religious Council in the illegal Kiryat Arba settlement, are extremely dangerous steps that threaten the Palestinian identity of the site, Amro said.

“The Jewish area [of the mosque] has been expanded, and recently, residents around the mosque have been living a difficult life due to soldier violence, settler terrorism, the constant closure of barriers, and restrictions on leaving their homes. They live as prisoners in their own homes in fear of settlers and soldiers, and disturbed by the constant gatherings held by settlers in the mosque,” he added.

According to the Applied Research Institute – Jerusalem (ARIJ) – a Palestinian research institute – approximately 40,000 Palestinians live in the H2 area, alongside about 800 Israeli settlers residing in 14 small illegal settlement outposts. These outposts are under heavy protection from thousands of Israeli soldiers deployed around the perimeter of the area and in the streets of the Old City, preventing Palestinians from leading normal lives.

The outposts are managed by the Hebron Settlements Council, which is linked to the parent settlement, Kiryat Arba, located east of the city.

A research study published by the institute in November 2025 revealed a significant increase in the forced displacement of Palestinians from the H2 area over the past two decades.

The Israeli human rights group B’Tselem said in a 2019 report that about 35,000 Palestinians lived in Hebron’s H2 area when the Hebron Agreement was signed in 1997. Today, only around 7,000 remain. Roughly 1,000 of them live in a particularly restricted zone around the Tel Rumeida neighbourhood and Shuhada Street – formerly Hebron’s main shopping street, which is now closed to Palestinians, due to the presence of several illegal Israeli settlements.

Palestinian families in the Old City and the vicinity of the Ibrahimi Mosque are subjected to various forms of pressure, including demolition orders under the pretext of unlicensed construction, frequent arrests, settler attacks on residents and students travelling to and from school, economic restrictions, shop closures, and movement restrictions, particularly regarding access to places of worship and hospitals.

According to the United Nations Office for the Coordination of Humanitarian Affairs, the area contains 97 various military checkpoints and barriers.

These are often closed for hours or even days at a time without prior notice, paralysing movement within the Old City and the residential areas adjacent to the mosque.

Towards full annexation

Observers see these measures in Hebron as a prelude to establishing a fait accompli in the West Bank as a whole, which has been subjected for more than two years to accelerated policies aimed at controlling the largest possible area of land and expanding settlements.

Settlement affairs researcher Mahmoud al-Saifi told Al Jazeera that Israel has sought over the past two years to solidify the annexation of the West Bank, particularly Area C, which constitutes more than 61 percent of the total area of the West Bank.

Israeli authorities have approved 54 new official settlements and 86 smaller outposts in 2025 alone, according to data from Peace Now, which monitors settlement activity.

Planning was approved or advanced for some 51,370 settlement units in the West Bank from late 2022 to the end of 2025, a figure also announced by Israeli government agencies based on data from the Higher Planning Council.

In addition, 222 kilometres of secondary and bypass roads were constructed in the two years preceding January 2025, aimed at connecting outposts to main settlements.

As a result of these policies, the Palestinian presence has dwindled in many areas, particularly the Jordan Valley, where their number has decreased to no more than 65,000.

“Israel is implementing a policy of encirclement and strangulation of small villages in the West Bank by confiscating land and preventing Palestinian construction, in contrast to the frenzied settlement wave that Smotrich called a ‘settlement revolution,’ and the accompanying bitter reality for Palestinians,” al-Saifi said.

There are now thousands of armed settlers spread throughout the West Bank, al-Saifi noted. Skilfully trained and often called settlement guards, they are essentially a rear guard force for the Israeli army, used to attack and intimidate Palestinians and seize their land.

“All Bedouin communities are located in Area C, and 47 of them have been forcibly displaced since October 2023, meaning more than 4,000 Palestinians have been displaced in just two and a half years,” al-Saifi said. “This is part of ethnic cleansing and de facto annexation on the ground.”

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Iran Is Losing Its Grip On Iraqi Militias

Iranian-backed militias have been increasing their attacks in Iraq in part because Tehran has lost its control over these groups since the launch of Epic Fury, a retired tier one special operator who just left Baghdad told The War Zone. He spoke with us hours after the U.S. Embassy in Baghdad warned of an imminent attack in central Baghdad and a day after the department announced a reward of up to $3 million for information about who is carrying out these attacks.

For years, Iranian-backed groups like Khataib Hezbollah have targeted U.S. and coalition bases, headquarters, embassies and other facilities in Iraq. While these groups have been supported by Iran with funding, weapons, intelligence and command and control, the Islamic Revolutionary Guard Corps (IRGC) has also reigned them in, explained the former commando, who now works in the private sector in Iraq on energy and reconstruction projects. He spoke on condition of anonymity to discuss ongoing operations. With the IRGC fighting for its own survival now, and its command and control structure decimated, their grip over the militias has loosened.

The degradation of IRGC during Epic Fury is “unleashing the shackles” on the Iranian-backed militias, said the former operator, who fought in Iraq during Operation Iraqi Freedom (OIF). “The IRGC would keep them in check, and tell them to come back to base and cool it. Now that leadership is gone.”

🚨🇮🇷🇮🇶🇺🇸 BREAKING: LARGE FIRE at the U.S. Victoria Base in Baghdad, Iraq following pro-Iran Iraqi militia drone attacks pic.twitter.com/3qlBcvKE6v

— GBX (@GBX_Press) March 20, 2026

As it has with its other proxy groups like Hezbollah and the Houthis, Iran has used Iraqi militia groups for military and political leverage when needed. However, many of these militias and their members, also known as Private Mobilization Units (PMU), fought against the U.S. during Operation Iraqi Freedom and have longstanding animosity toward the U.S. They want to kill Americans independent of instructions from Iran, the source stated. 

“Now they’ve gone rogue,” the source proffered. “We have definitely seen an uptick in attacks.”

The result, he posited, has been “chaos across the country.”

On Thursday, the U.S. Embassy in Baghdad warned that “Iraqi terrorist militia groups aligned with Iran may intend to conduct attacks in central Baghdad in the next 24-48 hours.”

“Iran and Iran-aligned terrorist militias have conducted widespread attacks against U.S. citizens and targets associated with the United States throughout Iraq, including in the Iraqi Kurdistan Region (IKR),” the embassy warning added. “They may intend to target U.S. citizens, businesses, universities, diplomatic facilities, energy infrastructure, hotels, airports, and other locations perceived to be associated with the United States, as well as Iraqi institutions and civilian targets.”

Iraq: Iraqi terrorist militia groups aligned with Iran may intend to conduct attacks in central Baghdad in the next 24-48 hours. Iran and Iran-aligned terrorist militias have conducted widespread attacks against U.S. citizens and targets associated with the United States… pic.twitter.com/8R5ClIH6YL

— TravelGov (@TravelGov) April 2, 2026

We reached out to the State Department to learn what prompted the warning, given the increasing frequency of militia strikes. We will add their response if we get one. The former operator said that the Embassy warning “means there is credible intelligence that they anticipate an attack. They have seen indicators about troop movements or that something is going to happen to the embassy.”

In addition to warning about an imminent attack, the embassy also noted that “(t)errorist militias have targeted Americans for kidnapping.”

This includes the recent abduction of freelance journalist Shelly Kittelson.

“We are deeply alarmed by the kidnapping of Al-Monitor contributor Shelly Kittleson in Iraq,” Al-Monitor said in a statement. “We call for her safe and immediate release. We stand by her vital reporting from the region and call for her swift return to continue her important work.”

The State Department is ‘aware of the reported kidnapping of an American journalist in Baghdad,” said Dylan Johnson, assistant secretary of state for global public affairs, told The Washington Post.

“The Iraqi Interior Ministry said security forces had arrested one suspect and seized a vehicle used in the crime and was tracking alleged accomplices in hopes of recovering Kittleson,” the publication added.

TOPSHOT - US journalist Shelly Kittleson poses for a picture in Baghdad on March 31, 2026. Kittleson was kidnapped on March 31, in Baghdad by a suspected Iranian-backed Iraqi armed group, the United States said, as regional security deteriorates following the US-Israeli attack on Iran. The State Department said it had warned the journalist of security risks and was working to ensure the American's release "as soon as possible". (Photo by AFP via Getty Images)
U.S. journalist Shelly Kittleson was kidnapped on March 31, in Baghdad by a suspected Iranian-backed Iraqi armed group, the United States said. (Photo by AFP) –

Since the launch of Epic Fury, we have reported on militia attacks on U.S. and coalition facilities in Baghdad as well as to the north  in Kurdish-controlled Erbil.

A Counter-Rocket, Artillery, and Mortar System (C-RAM) seen firing into the sky over Baghdad during tonight’s drone attack against the U.S. Embassy and Baghdad International Airport by Iran. pic.twitter.com/Sv8ceqAicY

— OSINTdefender (@sentdefender) March 17, 2026

Victory Base Complex (VBC), a cluster of U.S. military installations surrounding Baghdad International Airport close to the Iraqi capital, has been a particular target. It was recently struck by Khataib Hezbollah first-person view (FPV) drones, destroying a U.S. military Black Hawk helicopter and a critical air defense radar.

An Iranian-backed militia carried out a successful FPV drone strike on Camp Victory in Iraq yesterday, successfully hitting multiple targets.

Seen here, one of the FPV attack munitions hits a parked UH-60 Black Hawk. pic.twitter.com/ngY8td9ONZ

— OSINTtechnical (@Osinttechnical) March 25, 2026

The militias also hit a Giraffe-1X radar that was atop the U.S. Embassy in Baghdad.

Last night, Iranian-backed militias struck the U.S. embassy in Baghdad, destroying the facility’s rooftop Giraffe-1X Multi-mission Radar.

The Giraffe-1X handled drone detection and C-RAM tracking. pic.twitter.com/qda5bcyyCX

— OSINTtechnical (@Osinttechnical) March 14, 2026

As you can see from these videos, the militias have an increasingly advanced arsenal that includes artillery rockets, missiles and especially drones, which complicate defenses. Radars and air defenses at embassies and bases in particular have been targeted by drones, from FPVs to Shaheds.

Regardless of whether the militias are acting on their own, their attacks are clearly benefitting Iran. They have drawn in additional U.S. forces, which have had to respond with strikes of their own. In response to these attacks, U.S. forces have struck back at military targets across Iraq. As we recently pointed out, some of those strikes have involved A-10 Thunderbolt II close support jets conducting strafing runs to protect U.S. interests in Iraq. 

“U.S. forces have taken action in response to attacks from Iran-backed Iraqi militia groups against American forces and personnel since the start of Operation Epic Fury,” U.S. Central Command spokesman Capt. Tim Hawkins told us Thursday morning. “We will not hesitate to protect our people.”

Hawkins declined to say how many of the more than 300 troops wounded so far during Epic Fury were injured while in Iraq.

As the situation in Iraq continues to spiral out of control, the State Department is using its purse in the hopes of finding detailed information about who is behind these attacks. The department’s Rewards for Justice (RFJ) program has offered a reward of “up to $3 million for information about attacks on U.S. diplomatic facilities in Iraq.”

“If you have information about these attacks, send us your tip,” RFJ urged on X. “Your information could make you eligible for relocation and a reward.”

Help us stop terrorist attacks on the U.S. Embassy in Baghdad and elsewhere.

If you have information on Iranian-aligned terrorist militia groups or others responsible for these attacks, send us your tips today. pic.twitter.com/zULrJkM8Qg

— Rewards for Justice (@RFJ_USA) April 1, 2026

Meanwhile the militia attacks continue, but for how much longer is a question, the former special operator noted.

While Iran’s loss of control over the militias has spurred them to act at will, they face a large and looming problem, he posited. The financial and logistical support they enjoyed from Tehran is drying up.

“They were very well funded and very well supplied,” said the ex-commando. “However, now they are not getting resupplied and that is going to cause a problem with their logistics. If they keep attacking, who is going to supply them?”

Contact the author: howard@thewarzone.com

Howard is a Senior Staff Writer for The War Zone, and a former Senior Managing Editor for Military Times. Prior to this, he covered military affairs for the Tampa Bay Times as a Senior Writer. Howard’s work has appeared in various publications including Yahoo News, RealClearDefense, and Air Force Times.




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