AGP Executive Report

U.S.-Iran pressure on Iraq’s economy: Washington is signaling it could force countries trading with Iran out of the dollar system, with Iraqi banks already hit and Iraq’s oil-finance links seen as a key leverage point. Baghdad housing crackdown turns deadly: A clash in Al-Dora during removal of unauthorized homes left a brigadier general and a security officer dead; four arrests followed as Iraq pushes to assert control ahead of militia disarmament deadlines. Anti-drug push: Prime Minister Ali al-Zaidi ordered monthly reporting on anti-drug operations, including seizures and destruction of narcotics, and called for more treatment and rehab support. Corruption freeze: Iraq’s Central Bank ordered asset freezes for 12 political figures tied to anti-corruption cases. Visa shock for Iraq’s “Iron Woman”: Former finance minister Taif Sami Mohammed denied a U.S. terror-watchlist claim after the State Department revoked her visa; the U.S. says she was added to the FBI list. Regional security shift: Iraq welcomed Syria’s move to integrate the SDF into state institutions, backing Syria’s unity and sovereignty. Oil logistics update: Basra exports reportedly hit their highest level since the U.S.-Iran conflict began, with Iraq preparing more loading options outside Hormuz.

Sports & Culture: More than 700 Iraqi athletes kicked off the 2026 Grand Bodybuilding and Fitness Championship in Kirkuk, with events running through Aug. 29 across junior, senior, and masters categories. Anti-Corruption: Iraq’s National Security Service arrested 61 people in Al-Muthanna over an alleged land-record forgery network tied to more than 90 forged transactions and about 2 billion dinars in losses, with additional Integrity Commission detentions linked to municipal leasing and other financial violations. Media Regulation: A new look at Iraq’s Communications and Media Commission highlights the tension between its telecom successes and its struggles in media oversight, amid claims of political interference and board paralysis. Iraq’s Oil Routes: Iraq is offering crude buyers a new way to load outside the Persian Gulf—via ship-to-ship transfers near Oman—while regional states push port and pipeline investments to reduce reliance on the Strait of Hormuz. Security & Sovereignty: As Iraq prepares for the Sept. 30 end of the international coalition mission, officials say weapons must move under state control, while talks continue on how to handle militia disarmament without sparking escalation. Iraq-Saudi Talks: A Saudi security delegation met Iraqi officials in Baghdad to discuss tighter border controls and expanded intelligence sharing.

Coalition Exit & Sovereignty: Iraq says the US-led anti-ISIS coalition withdrawal is accelerating and will end by Sept. 30, with Baghdad also pushing armed groups to hand over weapons as part of state authority. Militia Weapons Deadline: Talks in Baghdad are weighing ways to avoid humiliating Iran-backed factions as the Sept. 30 disarmament deadline nears, while the Coordination Framework urges no ministerial exits until the cabinet is complete. Security Crackdown in Baghdad: Parliament ordered a high-level probe into a deadly Dora-area shootout during illegal-housing removals that killed a brigadier general and wounded others, as security forces also dismantled a drone-manufacturing workshop and seized 25 drone frames. Anti-Corruption Push: PM Ali al-Zaidi says inflated project costs drive corruption and vows tighter audits, while the Integrity Commission chief says there are “no red lines” and asset recovery will continue. Regional Diplomacy: Saudi and Iraqi security officials met in Baghdad to tighten border controls and expand intelligence sharing. Economy & Currency: The dollar traded lower in Baghdad; Iraq also reported currency-counterfeiting seizures. Oil Routes Beyond Hormuz: Iraq offered crude loading outside the Persian Gulf for the first time since the war began, and KRG says it can swap its oil quota for subsidized fuel from Baghdad.

Oil & Shipping Workarounds: Iraq’s SOMO is offering Basrah Medium and Heavy crude via ship-to-ship transfers near Oman, letting buyers avoid the Strait of Hormuz for the first time since the Iran war began. Security & Sovereignty: Iraq says the US-led coalition withdrawal is accelerating and will be completed by Sept. 30, as Baghdad pushes to bring all weapons under state control; PMF also called for a public celebration of the Sept. 30 “Iraqi Sovereignty Day.” Anti-Corruption Crackdown: Iraq’s National Security Service recovered over 93 billion dinars and seized $14m plus 12 billion dinars, arresting 40 suspects and dismantling cells tied to the banned Baath Party. Baghdad Violence: Karkh police chief Hisham Mohammed Talaa was killed in an armed clash during “removing encroachments” operations in Dora. Kurdistan Drone Attacks: A suspected drone hit Soran in Erbil province, sparking a fire with no casualties reported. Currency & Prices: The CBI denied printing new banknotes with zeros removed; diesel led July fuel sales in Iraq. Tech & Telecom: Iraq is in talks for a second satellite internet operator licence to compete with Starlink, and Egypt-Iraq talks covered digital transformation and telecom cooperation.

West Asia Power Talk: Iran’s top security official Mohsen Rezaei told Iraq’s Supreme Judicial Council chief that the US has “no place” in West Asia’s future, urging border security and dismantling anti-Iran armed groups. PMF and State Control: Iraq’s PM Ali al-Zaidi is pushing a major PMF reform to professionalize the force, a move that could support militia disarmament goals ahead of the Sept. 30 weapons deadline. Cabinet Fight: The Al-Azm Alliance rejected a plan to cut its next cabinet share from two ministries to one after its leader was arrested over corruption allegations. Telecom Court Battle: Iraq’s courts upheld the regulator’s suspension of Korek Telecom after overturning an injunction, as CMC measures shut down Korek offices and centers. Currency Rumors: The Central Bank of Iraq denied printing new banknotes with three zeros removed, saying any redenomination would require formal legal and technical steps. Economy Watch: Iraq’s June 2026 budget revenues fell 42% year-on-year, with oil income down sharply. Energy Moves: Iraq and Shell discussed boosting Basra gas output and cutting associated gas flaring. Kurdistan Security: A drone was shot down near Soran in KRI, sparking a fire; Germany also ended its anti-ISIS advisory mission in the region as coalition drawdown nears. Corruption Crackdown: Courts sentenced electricity officials over bribery and illicit gains, while Integrity Commission raids arrested Najaf officials. Drugs: Courts in Dhi Qar and Najaf handed long prison terms and life sentences in trafficking cases.

Air Defense Financing: Iraq’s Finance Minister Faleh al-Sari met South Korea’s ambassador to finalize funding mechanisms for a contracted air defense missile system, with Army Chief of Staff Abdul-Amir Rashid Yarallah also attending. Post-Coalition Rule of Law: Iraq’s Chief Justice Zaidan met the U.S. chargé d’affaires to discuss legal preparations for the coalition mission’s end on Sept. 30, including prosecution of unauthorized weapons and broader enforcement of the constitution. Waste-to-Resource Deal: Iraq’s GCCE and Germany’s Sutco signed a major Baghdad agreement to build an integrated waste management and resource recovery facility, targeting fertilizer, renewable aviation fuel, and carbon assets. Internet Quality Push: Iraq’s Communications and Media Commission launched a CMC Speed Test app to crowdsource mobile and internet performance data for a national regulatory database. Currency Pressure: The Central Bank of Iraq reported July foreign currency sales at $5.662bn, down 20% year-on-year. Security & Infrastructure: Diyala opened an inquiry into a fire at an oil-protection compound that destroyed fuel tankers; Nasiriyah airport construction hit 68% with handover expected in early 2027. Diplomatic Tensions: Iraq summoned Iran’s ambassador over social media map posts using contentious regional nomenclature. Sports: Graham Arnold extended his Iraq coaching contract through the 2027 Asian Cup.

US-Iran Pressure & Iraq: The US is easing some Middle East embassy evacuations by sending diplomats back to posts including Baghdad, with some missions operating at up to 85% staffing, as Washington pushes “economic D-Day” sanctions on Iran and warns trading partners they could face penalties. Regional Energy Shock: Strait of Hormuz disruptions continue to reshape flows; Iraq remained South Korea’s fourth-largest crude supplier in H1 2026 (7.4% share), while officials warn Iraq could face harsher economic fallout if it doesn’t comply with US sanctions. Iraq Budget & Cash: Iraq plans to set aside $15B (20 trillion dinars) in its 2027 budget to finish stalled projects, with no new-project spending, amid deficit concerns. Currency & Finance: Central Bank data shows total dinar issued hit 111.189T by end-June 2026; the dollar rate dipped slightly in Baghdad and Erbil. Security & Sovereignty: Iraq says the international coalition’s mission ends Sept. 30, while Iran-backed factions like Al-Nujaba accuse Washington of “double standards” on militia arms. Local Life: Baghdad’s Al-Adhamiya held Prophet Muhammad’s birthday celebrations with a reported security plan and no armed displays; Kirkuk draws visitors to a hair relic attributed to the Prophet. Services & Daily Strain: Parliament’s education committee plans talks on ending school overcrowding and double/triple shifts, and Najaf gypsum plants report fuel oil shortages since May. Sports: Iraq Stars League matchday 3 saw Erbil and Al-Shorta win 1–0, while Zakho and Diyala drew 2–2.

Iran-Iraq Sovereignty Row: Iran’s top security official Mohsen Rezaei told Iraq’s chief judge Faiq Zaidan the U.S. “will have no place” in West Asia, urging both sides to tackle anti-Iran militant groups along their shared borders. Judicial Solidarity: Zaidan said Iraq will never forget Iran’s support against terrorism and condemned U.S. “economic terrorism” and sanctions. PMF Tensions: Iraq’s Coordination Framework urged PM Ali al-Zaidi to avoid security operations that could look “provocative” after PMF detentions and transfers sparked internal anger. Antiquities Crackdown: Iraq’s National Security Service recovered hundreds of rare artifacts across Baghdad, Kirkuk, Nineveh, Anbar, Babil and Wasit, with arrests and items headed for preservation. Oil & Exports: Gulf Keystone reported $82.8m half-year revenue as Sheikhan production restarted, while TotalEnergies CEO Patrick Pouyanné said Hormuz remains profitable for traders and pushed for alternative routes. Currency & Digital Push: Iraq is moving toward removing three zeros from the dinar and expanding digitized payments, aiming to cut cash outside the system. Regional Travel: SalamAir announced direct Muscat–Erbil flights from Oct. 25. Sports: Graham Arnold renewed as Iraq coach through the 2027 Asian Cup.

Oil & Sanctions: Oil prices slipped as markets braced for new U.S. sanctions on Iran, with Strait of Hormuz traffic still tightly constrained. Hormuz Exports: Iran granted limited passage for some Iraqi tankers, while Iraq pushes alternative export routes, including plans to raise shipments via Turkey’s Ceyhan and talk of Iraq-Syria pipeline options. Currency Reform: Iraq plans to remove three zeros from the dinar and introduce new banknotes to pull cash held outside banks back into the system. Oil Sector Reforms: North Gas said oil-sector changes are part of a time-limited trial, after protests over new crude pricing rules. Security & Heritage: Iraq’s National Security Service recovered rare antiquities across multiple provinces and arrested suspected smugglers. Fraud Crackdown: Federal intelligence disrupted an alleged dollar-selling and digital-wallet theft scheme and shut down related online platforms. Politics & Militias: Iraq signaled it may delay the weapons handover process tied to the Sept. 30 timeline, while outreach continues to bring Muqtada al-Sadr back into politics. Local Life & Religion: Mawlid celebrations began at Baghdad’s Al-Gilani shrine with a security plan in place. Sports: Iraq’s coach Graham Arnold renewed his contract for six months. Business & Travel: Iraqis bought 691 properties in Türkiye in seven months, and SalamAir launched direct Muscat–Erbil flights from Oct. 25.

Currency Reform: Iraq plans to remove three zeros from the dinar to curb cash outside the system and support digitized payments, though the Central Bank has not yet set a timetable. Anti-Corruption Push: Security forces arrested the head of the legal department at the Investment Commission over alleged corruption and improper pressure on investors. Sovereignty & Militia Weapons: Prime Minister Ali al-Zaidi reiterated Sept. 30 as the end of armed activity outside official institutions, while lawmakers say weapons control is still unresolved; PMF restructuring is moving through parliament as a priority. Interior Minister Nominees: State of Law submitted candidates for interior and higher education to al-Zaidi, including Lt. Gen. Mohammed al-Sultani for interior. Electricity Shake-up: The Electricity Ministry removed 11 officials tied to key southern plants amid corruption allegations. Oil Protests & Pricing: Oil workers protested new crude pricing rules and proposed salary deductions, while Basra oil service firms warned they may halt work over dinar payments at the official exchange rate. Hormuz Pressure on Exports: Strait of Hormuz traffic remains sharply down, but Iran has allowed some Iraqi tankers to pass, as Iraq seeks alternative routes and export stability. Prison Overcrowding: Iraq’s Justice Ministry is starting steps to repatriate about 6,000 foreign inmates to their home countries. Regional Diplomacy: Baghdad proposed a joint security council with Iran and Saudi Arabia, citing a “crisis of trust.” Trade Facilitation (KRG): The Kurdistan Region opened a trade license office at the Bashmakh border crossing with Iran to speed permits.

Hormuz Oil Lifeline: Iran granted special permission for some Iraqi oil tankers to transit the Strait of Hormuz after Baghdad’s repeated requests, as Iraq scrambles to keep exports flowing while regional tensions and U.S. pressure mount. Weapons Under State Control: With September 30 looming, Iraq’s political blocs are still split over how to handle armed factions and the PMF Service and Retirement Law is set to reach parliament this week, while some leaders argue the deadline may not be firm. Anti-Corruption Push: Iraq’s Integrity Commission detained four public employees in Najaf over alleged pension embezzlement and bribery, as the government expands efforts to track and recover smuggled funds abroad. Oil Sector Move: The Iraqi Drilling Company is relocating a rig from the Zubair field to East Baghdad South to drill 17 horizontal wells and boost central-region output. Korek Telecom Court Win: A Baghdad court temporarily suspended punitive CMC decisions against Korek Telecom, easing a dispute that had led to office closures and service disruptions. Displacement & Trade: Duhok plans the return of 410 displaced Sinjar families with IOM support, while Syria’s road freight rebounds as border crossings reopen, boosting traffic with Iraq.

Jobs & Pay Protests: Employees and contract workers protested in Baghdad and Babil over overdue salaries, permanent hiring demands, and long-running labor grievances, including Basra land allocations. Nineveh Court Delay: Iraq’s Federal Supreme Court postponed a hearing on a disputed Nineveh land decision until Sept. 7 after lawmakers sought more time. ISIS Repatriation Push: Iraq’s justice ministry is moving to repatriate about 6,000 foreign inmates linked to Islamic State across 61 countries, excluding those sentenced to death. Hormuz Oil Tensions: Iraq’s president said some Iraqi oil tankers are being facilitated through the Strait of Hormuz, while Iran warns neighbors against joining US “economic war” and threatens retaliation. Security Readiness: Iraqi forces say they’re fully prepared for the Sept. 30 US-led coalition withdrawal, and PMF fighters repelled an ISIS attack in Saladin’s Tuz Khurmatu. Economy & Daily Life: The parallel dinar rate held near 154,500 IQD per $100 in major markets, and Iraq’s Tigris faces pollution from about 500 sources, worsening water and food risks. Culture & Sports: Baghdad hosts the 27th International Book Fair (Sept. 2-12), and Iraq’s women’s volleyball team lost 3-0 to Chinese Taipei in its continental debut.

Strait of Hormuz, Oil Exports: Iraqi President Nizar Amidi says Iran has facilitated passage for some Iraqi oil tankers through the Strait of Hormuz after Baghdad’s repeated requests, while stressing the strait’s disruption is a global issue and that Iraq is seeking export routes as shipping remains severely affected. Sovereignty Line: Amidi also reiterated Iraq will not allow its territory to be used to launch attacks on Gulf states, calling for dialogue with armed groups to keep weapons under state control. US-Iran Sanctions Standoff: Iran’s top security leadership warned countries against joining the US “economic war,” as Washington prepares new sanctions and both sides trade sharp rhetoric. Interior Ministry Deal Denied: Nouri al-Maliki’s office denied reports that he agreed to relinquish the Interior Ministry portfolio. Security Crackdown: Iraq’s National Security Service announced a nationwide operation starting Sunday targeting terrorism, drug trafficking, murder, and theft suspects. Politics & Governance: Iraq’s parliament is set to hear the finance minister over the financial crisis, and the PMF law dispute over a commission chair’s tenure continues to stall legislation. Media Curbs: Iraq’s communications regulator issued at least 18 media appearance bans in 2026, including suspensions and fines for multiple outlets. Tech & Connectivity: Earthlink says Starlink can support remote internet access, while Erbil and Baghdad plan joint steps to activate 5G services. Economy Snapshot: A GDP ranking places Iraq 76th globally for 2026 GDP per capita (PPP).

Strait of Hormuz, Oil Exports: Iraq’s President Nizar Amidi said some Iraqi oil tankers are being “facilitated” through the Strait of Hormuz, while warning the waterway’s turmoil affects the whole world; Iran’s state media also said Tehran granted special permission for Iraqi tankers after Baghdad’s requests, as Iraq pushes alternative export routes via Turkey’s Ceyhan and onward links to Syria and Jordan. Sovereignty & Security: Amidi reiterated Iraq will not allow its territory to be used to launch attacks against any country, and said only “two or three” armed factions still have weapons to hand over, with dialogue aimed at keeping arms under state control. Coalition Withdrawal Deadline: Iraq said the Sept. 30 end of the international coalition mission will be a “historic transformation,” framing it as a test of Iraq’s security readiness. Economy & Finance: Iraq’s state banks are sharply cutting lending without clear 2026 credit plans, while the government’s cabinet is nearly complete with only 2–3 ministries unresolved. Trade & Logistics: Iraqi trucks have started operating under the UN-backed TIR transit system for the first time, boosting overland freight income potential. Comms Policy: Iraq’s Communications Ministry denied signing a direct Starlink deal, saying Starlink could join partners within two years.

US-Iran Sanctions Showdown: Iran warned its response to new U.S. economic curbs would be “devastating,” as Washington’s Treasury chief said details of the toughest sanctions are due Monday. Iraq Weapons Deadline: Iraq’s parliament speaker and government officials reiterated Sept. 30 as the deadline to bring all weapons under state control, with talks ongoing with armed factions. Fuel Protests in Kirkuk: Shortages of kerosene and generator fuel sparked street protests in Kirkuk after power cuts hit daily life. Hormuz Workarounds: Iraq’s PM said Baghdad is pushing to expand oil exports via Türkiye, Syria and Jordan, while also seeking special Hormuz access for Iraqi tankers. Energy Diplomacy: Iraq and Saudi Arabia discussed energy security and supply stability in Riyadh, as Iraq tries to deepen regional ties. Drug Crackdowns: Security forces in Al-Anbar and Maysan dismantled major drug networks, seizing crystal meth and large quantities of pills. Regional Politics: Iran’s parliament speaker Ghalibaf urged trade in local currencies to cut reliance on the U.S. dollar, while Iraq’s leaders continued pushing for economic stability amid the Gulf dispute.

Oil & Trade Routes: Iraq is pushing to keep crude flowing as Hormuz disruptions bite, with Prime Minister Ali al-Zaidi saying Baghdad has secured alternative export routes via Türkiye’s Ceyhan port and is also working on Syria’s Baniyas and Jordan’s Aqaba, while aiming for 8–10 million bpd within six years. OPEC Push: Al-Zaidi said Iraq sent a delegation to Saudi Arabia to seek a higher OPEC+ quota after the war and Hormuz closure hit production and exports. Sanctions Pressure: Iran’s parliament speaker Mohammad Bagher Qalibaf told business leaders in Baghdad that Tehran must plan to withstand “unjust” US sanctions and urged Iran-Iraq trade in national currencies to cut dollar dependence. Arms Under State Control: Asaib Ahl al-Haq handed over weapons and drones (without munitions) to Iraqi state authorities as part of the push for a state monopoly on arms ahead of the Sept. 30 disarmament deadline. Anti-Corruption: Iraq’s Integrity Commission has started auditing pension files to identify and recover pensions paid without entitlement, including cross-checks with the National Board of Pensions. Telecom Crackdown: Iraq’s media regulator shut down Korek Telecom offices in Baghdad, citing enforcement actions with the National Security Service. Infrastructure & Customs: Iraq approved IQD 15 billion for upgrades at three border crossings and set new pre-payment rules for customs duties and estimated taxes starting Oct. 1, 2026.