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US plans to cut military aid to key Middle East ally, BBC told

Created at 28 Aug · 8:16 PM1 source↑ Market-relevant
IN SHORT

The Trump administration is reportedly planning to end security assistance to Iraq's Peshmerga forces as an agreement expires on September 30. This move comes amid escalating attacks from Iran and concerns it could create a power vacuum, emboldening Tehran.

Key Numbers

September 30agreement expiration date
$61 millionFY26 security assistance to Peshmerga
180,000Peshmerga troops
158missile or drone attacks by late May
2016initial MOU signing date
2022MOU renewal date
$800 millionUS consulate complex cost

Who's Involved

Donald Trump
US President initiating war with Tehran
Peshmerga
Kurdish security forces receiving US military aid
Iran
Actor increasing attacks on Iraqi Kurdistan
Yerevan Saeed
Director of the Global Kurdish Initiative for Peace
James Jeffrey
Former US ambassador to Iraq and Turkey
Ali al-Zaidi
Iraqi Prime Minister
Pete Hegseth
Defence Secretary
Michael Rigas
Senior State Department official
Tom Barrack
US ambassador to Turkey and special envoy to Iraq and Syria
Jason Campbell
Former US defence official

↳ Why This Matters

The potential withdrawal of US military aid to Iraq's Peshmerga forces could destabilize the region, embolden Iran, and undermine a key ally in the fight against terrorism, potentially creating a power vacuum similar to that which allowed ISIS to rise.

Key facts

  • The Trump administration plans to end security assistance to Iraq's Peshmerga forces.
  • The current agreement expires on September 30, coinciding with the withdrawal of US troops from Iraq.
  • Kurdish officials express concern that ending aid will create a power vacuum and embolden Iran.
  • Iran has significantly increased missile and drone attacks into Iraqi Kurdistan.
  • The US is considering alternative security support mechanisms for Iraq and Iraqi Kurdistan.

The Trump administration is reportedly planning to cease military aid to Iraq's Peshmerga security forces as a security assistance agreement expires on September 30. This decision, communicated by the US Department of Defense to Kurdish leaders, comes amid escalating attacks from Iran into Iraqi Kurdistan and concerns that the move could create a power vacuum, potentially emboldening Tehran.

Sources familiar with the matter told the BBC that the administration does not intend to renew the memorandum of understanding with the Kurdish Regional Government, which has been a key partner in the fight against the Islamic State group. This potential cut-off of funding, which amounted to $61 million in fiscal year 2026, has raised alarms among Kurdish officials and analysts, who warn it could undermine a long-standing ally and signal untrustworthiness to regional partners.

Kurdish officials fear that without US support, they will be more vulnerable to Iranian aggression. Iran and its backed militias have conducted a significant number of missile and drone attacks into Iraqi Kurdistan. Despite these attacks, defense officials have indicated the US will not extend the current agreement, though a final decision is still under review and the US is considering alternative security support mechanisms.

The expiration of aid coincides with the planned withdrawal of remaining US troops from Iraq, formally ending the international military campaign against IS. Analysts suggest this withdrawal, coupled with the cessation of aid, could leave the Peshmerga exposed, potentially repeating past mistakes that led to the rise of IS. Some experts, like former US ambassador James Jeffrey, argue that continued support for the Peshmerga is a worthwhile investment, citing the group's crucial role in combating extremism.

Frequently asked questions

The Peshmerga are the armed forces of the Kurdistan Region of Iraq, which have been a key partner for the US in combating the Islamic State group.

The memorandum of understanding between the Pentagon and the Kurdish Regional Government is set to expire on September 30.

The Pentagon proposed cutting aid in its fiscal year 2027 budget request, arguing that since IS was defeated, the money should be reallocated. However, the spending plan is on hold amid a broader budget battle in Congress.

Kurdish officials and analysts fear the cut-off will create a power vacuum, embolden Iran, and leave a key ally exposed, potentially leading to a resurgence of extremist groups.

What Happens Next

01A final decision on US security engagement with Kurdistan is under review.
02The US is considering alternative security support for Iraq and Iraqi Kurdistan.
03The current memorandum of understanding expires on September 30.

How It Developed

The Trump administration is planning to cut off military aid to Iraq's Kurdistan region.
The US Department of Defense informed Kurdish leaders that an expiring security assistance agreement will not be renewed.
Kurdish officials fear the funding cut will create a power vacuum and embolden Iran.
The memorandum of understanding between the Pentagon and the Kurdish Regional Government is set to expire on September 30.
Iran has increased missile and drone attacks against Iraqi Kurdistan.
A Pentagon spokesperson referred to a statement about Iraqi Security Forces leading the fight against terrorists.
The US is considering ways to maintain some security support in Iraq and Iraqi Kurdistan after troop withdrawal.
The US could avoid repeating past mistakes by continuing to back the Peshmerga, according to a former US ambassador.

Sources

T1
US plans to cut off military aid to key Middle East ally, BBC toldBBC News

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