The State Department warned that the U.S. could shut down Iraq’s access to the country’s central bank account held at the Federal Reserve Bank of New York, a move that could jolt Iraq’s already shaky economy, the officials said.

Iraq, like other countries, maintains government accounts at the New York Fed as an important part of managing the country’s finances, including revenue from oil sales. Loss of access to the accounts could restrict Iraq’s use of that revenue, creating a cash crunch in Iraq’s financial system and constricting a critical lubricant for the economy…

The potential economic and financial fallout is weighing on Iraqi officials as they try to address the presence of American troops without provoking a backlash. In recent days, Iraqi officials have stressed the need for friendly relations with the U.S., even as pro-Iranian militias and politicians exert pressure to expel American troops.