Baghdad: The US Treasury Department announced on Sunday that it is intensifying its efforts to track Iranian funds. In a brief statement, the Treasury stated that the Iranian regime is transferring funds abroad to escape inflation.

According to National Iraqi News Agency, tensions between Iran and the United States have escalated recently, with both sides exchanging threats and warnings. This comes as the US Department of Defense (Pentagon) released its National Defense Strategy 2026 on January 24, which stated that “Washington believes Iran may attempt to acquire nuclear weapons, including by refusing to negotiate its nuclear program.”

The current round of indirect negotiations between Iran and the United States concluded temporarily last Friday in Muscat, the capital of Oman. Iranian Foreign Minister Abbas Araqchi confirmed earlier on Sunday that his country does not seek war, but is prepared for it if it is imposed upon them. He emphasized Tehran’s commitment to the diplomatic path and its rejection of any external dictates.

This coincided with Iranian President Masoud Pezeshkian’s assertion that “the Iranian people respond to respect with respect and do not accept the language of threats or the use of force.”