Coronavirus and sanctions hit Iran’s support of proxies in Iraq

FILE PHOTO: Iraqi women gather at the scene where Iran's Quds Force top commander Qassem Soleimani and Iraqi militia commander Abu Mahdi al-Muhandis were killed in a U.S. airstrike at Baghdad airport, Iraq February 13, 2020. REUTERS/Wissam al-Okaili/File Photo

(Reuters) - Iran’s financial and military support for Shi’ite proxy paramilitary groups in Iraq, a linchpin of its regional foreign policy, has been dramatically disrupted by the coronavirus pandemic and U.S. sanctions, according to people familiar with the matter.

Interruptions caused by the virus, including border closings to prevent the spread of the disease, have drastically cut Tehran’s cash supplies to the militia groups in recent months, said three Iraqi paramilitary group commanders and a regional official familiar with Iran’s activities in Iraq. The funds from Iran are typically allocated for military operations related to the paramilitary groups’ activities such as fighting Iran’s opponents, including attacks against U.S. targets, the three commanders said.