AGP Executive Report

Hormuz diplomacy and oil reroutes: Iraq’s FM Fuad Hussein met Arab League chief Nabil Fahmy in Cairo to push dialogue and warn about economic fallout from Strait of Hormuz disruptions. Energy logistics: Kirkuk and KRI crude exports via the Iraq–Turkey pipeline to Ceyhan held around 220,000 bpd as Iraq seeks alternatives while Hormuz remains constrained. Oil deal: Iraq and Turkey agreed on a joint oil refinery in Ceyhan under a wider pipeline framework. Local governance: Baghdad faces calls to freeze housing enforcement campaigns as officials push to stop demolitions of homes on agricultural land. Jobs and protests: PM Ali al-Zaidi ordered permanent and contract hiring for long-waiting graduates; petroleum institute graduates and engineers keep protesting. Security and crime: Iraqi forces detained a suspected drug network leader in Babil after clashes; counter-terror units arrested an ISIS suspect in Sulaymaniyah; anti-narcotics seized crystal meth in Erbil. Regional tensions at universities: Iraqi students in Semnan, Iran, were attacked again; Iraq’s embassy says the situation is contained and students got a one-month break. US exit timeline: Iraq’s armed forces say the international coalition mission ends Sept. 30, with defense systems withdrawal tied to the same deadline. Kurdistan budget talks: KRG finance delegation heads to Baghdad for 2027 budget negotiations.

Kurdistan Security: Iran carried out another drone attack on an Iranian Kurdish opposition camp in Surdash, near Sulaymaniyah, targeting Komala of the Toilers of Kurdistan; the party and Asayish said there were no casualties, but fires broke out. Health: Erbil’s Nanakali Hospital reported 1,500–1,800 new cancer cases annually and up to 400 patients a day, citing a 75% recovery rate and new rare-medication support. Courts & Property: Iraq’s Federal Supreme Court upheld Nineveh’s decision lifting construction restrictions on parts of the Nineveh Plains near Mosul, rejecting challenges tied to Shabak-area expansion. Arms Monopoly Push: Supreme Judicial Council chief Faiq Zidan met the new U.S. chargé d’affaires, stressing judicial backing for Iraq’s plan to restrict arms possession to state authorities. Parliament vs Security: A Dhi Qar lawmaker said a PM-linked order blocks parliament from summoning security officials without prime minister approval, weakening oversight. Anti-Corruption: The Integrity Commission uncovered a Nasiriyah property fraud network and issued arrest warrants for the former municipal director and staff. Diplomacy: Egypt’s FM and Iraq’s deputy PM/FM called for reducing regional polarization at an Arab League meeting. Economy & Currency: The CBI said most deposits are guaranteed, while the dollar rate in Baghdad rose to 156,000 IQD per $100 in parallel markets. Energy & Trade: Iraq said it is modernizing air defenses over three years and is pushing oil export capacity toward 5M bpd via new pipeline routes. Culture: Baghdad’s International Book Fair drew record participation from 28 countries.

Heritage Restoration: Iraq has started restoring the 3,400-year-old Kassite Aqarquf ziggurat temples west of Baghdad, with an Italian archaeological team reinforcing cracked brick and mud-brick walls while preserving the site’s original character. Security & Politics: Iraq’s Coordination Framework plans talks with PMF and armed factions on how to handle faction weapons ahead of Sept. 30, as factions resist disarmament and the government weighs a freeze/regulation option; meanwhile, the CF also aims to fill remaining cabinet posts. US-Led Mission: Iraq says the international coalition will withdraw all defense systems and troops by end of September, including in the Kurdistan Region. Corruption Crackdown: The Integrity Commission issued 191 arrest warrants in August, including 27 for high-ranking officials. Economy & Banking: CBI says depositors at Al-Taif Islamic Bank are protected and funds will be returned; it also reiterated that deleting dinar zeros needs parliament, while currency design is CBI’s job. Health & Services: Health Ministry plans 10 new hospitals across Iraq; PM al-Zaidi approved 30 billion dinars for Al-Diwaniyah Stadium. Markets: Iraq’s stock exchange trading value fell 81.6% in August, while the dollar edged up in Baghdad and stayed steadier in Erbil. Regional Tensions: Israel assesses Iran is planning a coordinated “multi-front” attack involving Hezbollah, Hamas, Houthis and Iraqi militias.

Border Security: Federal and Kurdistan Region officials met in Baghdad to tighten border control and boost intelligence-sharing, focusing on smuggling, infiltration, joint drills, and faster handover of wanted suspects. PMF Law: Iraq’s government is preparing to send PMF-related draft legislation to parliament within weeks, including PMF restructuring and service/retirement bills after US objections were addressed. US Troop Withdrawal: The US plans to complete its troop withdrawal from Iraq by Sept. 30, ending a presence that began after 2003 and leaving security to Iraqi forces. Oil Routes & Capacity: Iraq says it has pushed crude export capacity to over 3 million bpd since early September and aims for 5 million bpd via new pipelines to Fishkhabur and Syria’s Banias, reducing reliance on Hormuz. Fuel Crisis: Despite record oil output, Iraq faces gasoline shortages and long queues as regional conflict disrupts tanker logistics; officials promise new shipments. Banking Fallout: Depositors protested outside Al-Taif Islamic Bank after the CBI placed it under guardianship, while the CBI said the move is precautionary. Crime & Corruption: Authorities arrested five over a Qi Card scam and detained a Baiji municipal official in a bribe-for-claims case. Public Order: Iraq’s Supreme Judicial Council ordered action against sectarian incitement online and in media. Health Watch: Iraq recorded 145 Crimean-Congo fever cases with nine deaths since January.

Oil & Trade Routes: Iraq says crude export capacity has topped 3M bpd and targets 5M by completing new pipelines linking fields to Fishkhabur and Syria’s Banias, aiming to cut reliance on the Strait of Hormuz. Fuel Crisis: Gasoline shortages are driving long queues in Baghdad as regional war disrupts tanker deliveries; the Oil Ministry says it’s prioritizing domestic self-sufficiency before any export push. Central Bank Watch: The CBI denied any US dollar rate change after social media claims, and reassured depositors that funds are safe, citing liquidity and deposit insurance. Security & ISIS Files: Iraq says it finished investigating about 5,700 ISIS detainees transferred from Syria and says Hawl Camp is nearing closure after about 21,000 Iraqis were repatriated without reported security breaches. Governance & Politics: The Coordination Framework decided not to reactivate deputy prime minister posts for now, citing costs and religious guidance, while a leadership change is expected at Kirkuk Operations Command. Housing & Heritage: Watan Initiative registration opens in October for one million free residential plots; Najaf reports 196 heritage buildings registered for protection. Regional Ripple: Thai rice shipments to Iraq are being rerouted overland via Jordan and Türkiye as Hormuz disruption shifts trade flows.

Iraq Fuel Crisis: Long lines returned to Baghdad and other provinces as gasoline and gasoil supplies tightened again, with the Oil Ministry blaming delayed tanker arrivals tied to the Middle East war and urging people to buy only what they need. Central Bank Reassurance: The Central Bank of Iraq told depositors their money is protected, saying guardianship steps for Al-Taif Islamic Bank are legal precautions and that banks are covered by deposit insurance. Banking Probe: Iraq’s Integrity Commission and regulators launched investigations into liquidity depletion and large, exceptional loans at state banks, focusing on Rafidain and Rasheed and credit facilities above 1 billion dinars. Oil and Shipping Shock: TankerTrackers reported Iraq’s August oil exports fell 36% versus pre-war levels, while other reports say exports recovered via Hormuz as Asian buyers benefited from discounts. Food Security Win: Iraq said it reached self-sufficiency in wheat for a third straight season and in dates for 2026, citing new seed varieties and subsidized irrigation. Sports and Security: Erbil SC condemned attacks by Al-Shorta fans on buses carrying its supporters in Baghdad, calling for a serious investigation. Culture and Diplomacy: An Iranian delegation visited KRI border crossings to ease road transport and tourism, while artists from Iraq and Lebanon held a Beirut symposium promoting coexistence.

Oil Revenues: Iraq’s Ministry of Oil says August crude exports hit about 70 million barrels, bringing nearly $4.5 billion, with average daily exports topping 2 million barrels for the first time since the regional conflict began. Fuel Crisis: Iraq’s Oil Ministry blames renewed gasoline and gasoil shortages on a production-consumption gap worsened by tanker disruptions tied to the US-Iran fight, while the Oil Minister says gasoline shipments are “coming soon.” Transport Plan: Baghdad’s “Green Taxi” project is moving forward as gasoline shortages bite, with plans for electric taxi charging infrastructure and possible Chinese vehicle imports. Agriculture: Iraq reports wheat and dates self-sufficiency in 2026, citing new salt- and climate-tolerant seeds and long-term subsidized irrigation support. Security & Crime: INIS says it dismantled a 10-member foreign trafficking-for-ransom network in Baghdad; separate operations in Kurdistan seized 260 kg of captagon. Governance & Corruption: A Karbala school-building push is stalled by delayed budgets, while an Iraqi lawmaker warns electricity contract corruption is fueled by weak pre-signature oversight. Media Rights: Journalists in Baghdad say security forces confiscated badges and blocked coverage over a permit requirement abolished in 2015. Culture: Iraq selected “No Paradise If You Are Killed By A Woman” for the Oscars.

Baghdad’s Traffic Crunch: With about 3 million cars on the road but only around 1,000 buses and a driver shortage, Iraq’s capital is bracing for heavier pressure as the new school year starts Sept. 20. UAE Flight Disruptions: Renewed US-Iran escalation is driving delays and cancellations across Dubai and Abu Dhabi, with multiple India-to-UAE routes running late. Dhi Qar Torture Probe: Baghdad detained four Al-Shatra Anti-Crime personnel over torture allegations after a video surfaced inside a police station. Oil Graft Oversight Fight: An Iraqi MP accused the Oil Ministry’s oversight units of failing in alleged corruption tied to Adnan Al-Jumaili and detained Hussein Talib. Tishreen Lawsuits: Families of 2019 protest victims are preparing court cases after Hadi al-Ameri’s remarks. Heritage vs Housing: Iraq’s antiquities board denies claims of deliberate archaeological destruction, saying development proceeds only after excavation and documentation. Oil Prices Jump: Crude is set for its steepest weekly gain since mid-July as Middle East supply fears rise.

US-Iran Escalation: The US is investigating a deadly strike on an Iranian wedding, with Reuters analysis saying it was likely a direct hit by a US munition; Iran reports five dead and nearly 70 wounded, while Iran also held funerals and launched missiles and drones at a US base in Kuwait. Baghdad Security & ISIS Cases: Iraq’s National Intelligence Service repatriated a suspect from Germany tied to the 2014 Camp Speicher massacre; meanwhile, Iraq’s judiciary says it has finished interrogations of 5,700 ISIS detainees for trial. Weapons-Control Deadline: An Iraqi MP warns that failure to bring weapons under state control could trigger tougher international pressure and even threaten salaries and the economy, as oil remains the backbone of federal revenue. Oil & Trade Routes: Oil prices stayed mixed as investors weighed Middle East supply fears and possible peace talks; Iraq also began exporting fuel oil via Jordan for the first time, while planning a major Basra–Haditha pipeline network to reduce reliance on Hormuz. Local Governance & Daily Life: Baghdad is pushing a new wave of modern cities across provinces to tackle a housing shortage, and Iraq’s interior ministry says crime fell to its lowest level in years under the new government.

Basra–Shalamcheh Rail: An Iranian delegation visited Basra to inspect the 36-km Basra–Shalamcheh railway, with officials saying the project is about 70% complete and demining finished on 16 km of the Iranian side, as Iraq pushes the long-delayed link to boost passenger travel and religious tourism. Terror Sentencing: Iraq’s Karkh Criminal Court sentenced three people to 15 years each under the anti-terror law for launching Katyusha rockets at the K1 base in Kirkuk, aiming to undermine security and spread fear. Regional War Fallout: Oil prices hovered near six-week highs as renewed US-Iran strikes raised supply and shipping worries around the Strait of Hormuz. Civilian Strike Probe: Iran’s Red Crescent urged the ICC to investigate a US missile strike on a wedding in Kuhestak/Sirik that killed four and wounded dozens, calling it a potential war crime. Iraq Economy & Markets: The US dollar traded around 154,500 dinars per $100 in Iraq, with Baghdad slightly higher than Erbil. Anti-Corruption: Iraq’s Integrity Commission halted an Al-Anbar state land sale after finding a $26M valuation gap. Drugs Crackdown: Security forces in Al-Sulaymaniyah seized 3 kg of narcotics, including magic mushrooms and marijuana. Sinjar Developments: Reports say 200+ PKK-affiliated fighters surrendered to Iraqi forces in Sinjar amid renewed clashes and displacement.

US-Iran Escalation: Iran launched missile and drone strikes hitting American interests in Bahrain, Kuwait, Jordan and Iraq’s Kurdistan after US strikes on Iranian targets on Sept. 1, with CENTCOM saying it hit IRGC air defenses, radar, maritime and mine-laying sites. Hormuz Oil Pressure: The US escorted 40 ships carrying about 18 million barrels through the Strait of Hormuz as Iraq’s exports rebounded—up about 73% in August to ~2.34M bpd—boosted by heavy discounts and Iranian permission for some Iraqi tankers. Baghdad Anti-Graft: Iraq’s Interior Ministry dismissed 38 officers and 180 staff over corruption in the first 100 days of the Dawn crackdown, while the CBI placed Al-Taif Islamic Bank under guardianship. Tishreen Accountability: A Wasit lawyer filed a complaint seeking Hadi al-Ameri’s summons over remarks on the 2019 Tishreen protests. Local Life & Culture: Mosul’s Al-Dawasa Sports Complex faces a redevelopment dispute as parts were demolished for commercial use; meanwhile the 27th Baghdad International Book Fair opened with 600+ publishers. Security & ISIS Trials: Iraq says investigations into 5,704 detained ISIS members are complete and trials have begun.

US-Iran Escalation Spillover: Iran’s IRGC says it hit US bases in Erbil with missiles and drones, while Iraqi Kurdish forces report downing explosive-laden drones near the airport; the US says it carried out fresh strikes on IRGC-linked targets and both sides trade claims as the wider region braces. US Embassy Alert: The US Embassy in Baghdad and Consulate in Erbil urged Americans to exercise extreme caution, expect flight cancellations and possible airspace or border disruptions, and prepare an evacuation plan. Disarmament Politics: Iraqi armed factions signaled flexibility to negotiate weapons under state control, but demanded decisions be made independently of outside pressure, with a legal framework and PMF-related legislation in the mix. Counterfeit Crackdown: INSS in Najaf arrested a suspect over counterfeit currency, seizing $100,000 plus Iraqi currency, documents, bank cards, and a firearm. Anti-Drug Push: Nineveh anti-narcotics forces seized 50 kg of crystal meth in a cross-border operation and arrested three suspects. Regional Connectivity: Baghdad and Ankara move ahead on a Fishkhabur–Ovakoy road-and-rail border link tied to Iraq’s Development Road. Oil & Money: Iraq’s August oil exports reportedly rose to about 2.34 million bpd; Iraq also spent about 7.438T dinars monthly on salaries and welfare in H1 2026. Security & Justice: Wasit prosecutors received a complaint against Hadi al-Amiri over remarks about the 2019 Tishreen protests; in corruption cases, Rafidain Bank former managers were arrested, and a loan-fraud ring in Babil was broken up.

Anti-Corruption Push in Baghdad: Security forces raided the home of Baghdad Chamber of Commerce director Firas al-Hamdani, as Iraq’s Integrity Commission continues corruption sweeps. Cost of Living Pressure: A new report highlights how salaries and pensions get wiped out by rent, utilities, food, transport, and generator costs, leaving little room to save. Food Security Move: The Cabinet banned agricultural imports until the end of the domestic production season and approved a draft law to create a Food and Drug Authority. US-Iraq Ties and Withdrawal Deadline: Washington reiterated support for PM Ali al-Zaidi’s agenda ahead of the Sept. 30 coalition withdrawal, while the clock keeps ticking on weapons control and militia disarmament. Security and Trials: Iraq says it has finished interrogating 5,704 ISIS suspects transferred from Syria and is moving them toward trial. Religious Rights Ruling: Iraq’s appeals court upheld a woman’s right to change her official status to Christian after she was misclassified as Muslim as a minor. Oil and Helicopter Updates: Iraq’s PM called for boosting output to 10 million bpd by 2030, and the US approved a possible $800M Bell helicopter sale to modernize Iraq’s rotary-wing fleet.

ISIS Detainees to Trial: Iraq says it has finished interrogating 5,704 ISIS suspects transferred from northeastern Syria, spanning 67 nationalities, and will send cases to trial courts in batches, with some releases already underway. Anti-Corruption Push: Iraq’s Federal Integrity Commission is probing state bank contracts and loan approvals for possible irregularities, as PM al-Zaidi moves to tighten oversight of public funds. Coalition Deadline Standoff: Baghdad rejects a U.S. proposal to keep some coalition forces after Sept. 30, saying the withdrawal and arms regulation plans are on track and Iraq won’t join regional conflict. Power Supply Crisis Looms: Private generator owners threaten to shut down unless fuel shortages, taxes, and fuel pricing are fixed; al-Zaidi orders subsidized September fuel and at least 20 hours of electricity via alternating grid/generators. Energy Export Workaround: PM al-Zaidi fast-tracks a $4.6B pipeline network to expand crude export routes beyond the Strait of Hormuz, linking Basra to Haditha and onward to Turkey and Syria. Helicopter Deal: The U.S. approved an $800M Bell helicopter sale to boost Iraq’s rotary-wing transport, reconnaissance, and air-to-surface strike capabilities. Duhok Crop Losses: Ten fires in Duhok damaged grain crops during harvest, with losses estimated at about $108,000.

Anti-Corruption Crackdown: Iraq’s Integrity Commission arrested a Mosul Municipality employee and his two sons over alleged extortion tied to a public auction, with the case handled by the Nineveh Integrity Investigation Court. State vs Militias: A Baghdad court sentenced Amir Rahim Jabbar Lazim to 15 years for kidnapping American journalist Shelly Kittleson, a rare prosecution of an Iran-aligned militia figure. Cabinet Formation: Prime Minister Ali al-Zaidi says negotiations on the remaining cabinet posts are set to wrap this week, with nominees heading to parliament next week for confidence votes. Coalition Withdrawal: Baghdad rejected any plan to keep international coalition forces past Sept. 30, saying talks with armed factions are progressing and security decisions must stay under state control. Currency Watch: The US dollar rose slightly in Baghdad and Erbil, hovering around 154,000 dinars per $100. Drugs Seized: Border forces in Sinjar seized 15 kg of crystal methamphetamine after intelligence tips. KRG Police Reform: Kurdistan’s Interior Ministry is pushing a police reform strategy for 2026–2030 with EU advisors, aiming to modernize forces by 2030. Oil & Trade: SOMO denied links to the sanctioned tanker BINARY STAR, while Iraq’s oil ministry met BP and ConocoPhillips on field development and gas capture.

Anti-Corruption Push: Iraq’s Integrity Commission arrested four warehouse custodians in Al-Diwaniyah over alleged copper theft, as the Dawn Crackdown keeps widening. Asset Seizures: Courts also seized about 7 billion dinars, $5.5M, 35 properties and vehicles tied to detained former Oil Ministry refining official Adnan Al-Jumaili’s office manager. Budget Watch: The cabinet will vote on the 2027 federal budget in September, with the deficit capped at 3% and a focus on electricity and provincial development. KRG-Federal Tensions: Customs and ASYCUDA implementation disputes remain unresolved between Baghdad and Erbil, despite an earlier border-revenue deal. Oil Routes & Trade: Iraq says fuel oil exports via Syria hit 21.4M barrels from March to end-August, boosting alternatives as Hormuz disruptions persist. Water Security: A watchdog warns Iraq may not fully benefit from higher Euphrates flows due to weak infrastructure, limited transfer capacity, and poor coordination. Economy & Markets: Iraq’s domestic public debt rose to 106.072T dinars by end-June; the ISX logged 3.12B dinars in weekly trading. Food Security: Iraq imported nearly 90,000 tons of potatoes worth $52.4M in 2025, highlighting a production and storage gap. Regional Politics: PM Al-Zaidi is set to visit France and Germany mid-September; in Khanaqin, Kurdish parties paused mass protests pending Baghdad talks. Sports: Iraq’s U20 team lost 2-1 to Turkmenistan in AFC qualifying and next faces the UAE.