AGP Executive Report

Regional Security: NATO says it’s “prepared to address” threats to allies after reports Iran weighed striking US assets in southeastern Europe, with Baghdad’s Camp Victory previously hit by drones. Iraq–Iran Talks: Iranian Parliament Speaker Mohammad Ghalibaf arrived in Baghdad for talks, stressing “resistance is now global,” calling for regional cooperation, and urging safeguards for Iraqi oil exports through Hormuz. Oil & Shipping: Oil prices climbed for a fourth straight day as Hormuz uncertainty persists, while Iraq approved a three-month mechanism to export crude via local and foreign firms starting Sept. 1 and discussed longer-term Syria pipeline plans. Disarmament Deadline: Iraq faces rising tension ahead of Sept. 30 as Baghdad pushes weapons under state control and Iran-aligned factions resist. Anti-Corruption & Justice: Martyrs Foundation says it uncovered 22,000 forged pension/compensation files worth about 3.2T IQD. Crime & Public Safety: Intelligence detained two wanted “terrorists” in Nineveh and Saladin; Interior broke up a Babil drug network, seizing 5 kg of crystal meth. Economy & Services: Iraq railway passenger traffic and freight both fell sharply in 2025, with revenues down. Humanitarian Day: UN marked 23 years since the Canal Hotel bombing that helped birth World Humanitarian Day, highlighting aid workers’ growing risks.

Digital Government: Iraq’s Higher Education Ministry became the first Iraqi ministry to use digital signatures for official transactions, signing a contract with the Communications Ministry as part of a wider automation push. Human Rights Watch: Amnesty International urged Prime Minister Ali Al-Zaidi to deliver on rights promises, saying impunity persists and stalled laws leave women and girls without protection. Kurdistan Under Fire: Iran-linked drone attacks hit the Kurdistan Region PM’s office in Erbil and a security official’s residence, drawing condemnation from multiple countries; Baghdad says it won’t compromise on sovereignty and will investigate. Weapons Under State Control: PMF-linked factions have started handing over weapons as Iraq moves to regulate arms under state authority, while some Iran-backed groups set conditions tied to US withdrawal. Oil Exports: The cabinet approved a three-month mechanism for crude exports starting Sept. 1, aiming to diversify routes as Hormuz tensions continue. Economy & Cash: Iraq’s budget ran a large deficit through end-June, with oil still driving about 79% of income, while debate resurfaces over removing three zeros from the dinar. Security & Crime: Iraqi forces destroyed an ISIS hideout in Kirkuk airstrikes; in Basra, border forces arrested three siblings with 2,000 methadone pills. Social Trends: Marriage contracts fell nearly 35% in July nationwide, while divorces edged up.

Kurdistan Drone Crisis: Iran’s FM Abbas Araghchi and officials denied involvement in Monday’s drone attack on KRG PM Masrour Barzani’s office and the Parastin intelligence chief’s residence, calling it “highly suspicious” and warning of “false-flag ploys” meant to sow discord; Regional Condemnations: Saudi Arabia, Jordan, and the UAE all condemned the strikes as violations of Iraq’s sovereignty, while Iraq’s PM Ali al-Zaidi ordered an investigation and renewed calls for stability; Arms Control Tensions: Badr’s Hadi al-Amiri urged moderation as Baghdad pushes weapons under state control, while Kataib Hezbollah set conditions for disarmament tied to US and Turkish withdrawals and Peshmerga disbanding; Strait of Hormuz Pressure: Iran’s parliament speaker Mohammad Bagher Ghalibaf is set to visit Baghdad amid demands that Hormuz reopen only after US lifts blockade and sanctions, as Trump again threatens Oman; Energy Exports: Iraq is also pursuing alternatives, including a proposed Iraq-Syria pipeline to bypass Hormuz and a Lebanon plan to revive the Kirkuk-Tripoli route; Economy & Currency: Iraq is reviving talks on deleting zeros from the dinar as budget strain deepens; Local Incidents: A major fire at a fuel facility in Sulaymaniyah injured about 30 people and destroyed dozens of tankers.

Weapons Under State Control: Iraq’s four top state authorities renewed their call to place all weapons under state control, linking it to strengthening state authority and the rule of law as the global coalition’s withdrawal nears. Kurdistan Drone Attack: Iraqi lawmakers pushed for an emergency parliament session in Erbil after two explosive drones hit the office of KRG PM Masrour Barzani and the residence of the Erbil security chief; no casualties were reported. Baghdad Demands Answers: Iraqi PM Ali al-Zaidi ordered an investigation into the Erbil attack, while FM Fuad Hussein demanded an official explanation from Iran; Iran called the incident “highly suspicious” and hinted at possible “false flag” motives. Diplomatic Fallout: The US envoy Tom Barrack, plus the UK and EU, condemned the strike and backed Iraq’s sovereignty and arms-control push. Regional Tensions: Kataib Hezbollah set conditions for any weapons talks, demanding full US withdrawal, Turkish withdrawal, and dissolution of the Peshmerga. Security Operations: Iraqi Air Force F-16s struck an ISIS hideout in Kirkuk, destroying the site and killing those inside. Diyala Alert: PMF sites in Diyala were evacuated after unidentified aircraft were detected. Economy Talks: Iran’s central bank chief met Iraqi counterparts to ease banking barriers and speed settlement of financial claims. Corruption/Payroll: Rasheed Bank denied involvement in Iraq’s “ghost employees” electricity payroll case, saying it only processes payments from official lists.

Kurdistan Security: Iranian drones hit Erbil again, targeting KRG PM Masrour Barzani’s office and the home of the Parastin intelligence chief, with no casualties reported; Kurdish parties and Iraqi factions condemned the attack as a dangerous escalation. Regional Diplomacy: Separate reporting says the Trump administration used Nechirvan Barzani as a backchannel to reach IRGC commanders after doubts about Iran’s negotiators’ authority. Hormuz & Iraq’s Economy: Iraq says the Hormuz crisis is already hurting its finances and is pushing reforms, including a first performance-based budget; the parallel dollar rate in Iraq climbed to about 154,500 IQD per $100. Anti-Corruption & Courts: Iraq’s Integrity Commission sentenced a former Saladin governor to 7 years and ordered major fines and asset freezes in an illicit wealth case. Local Unrest: Security forces shut the Babil-Baghdad highway as unemployed graduates protested for jobs, spreading demonstrations into Baghdad. Energy Planning: Iraq began reorganizing desert frontier security, dissolving East Saladin Operations Command and creating Badia Operations Command near the Saudi border. Tourism Push: Iraq unveiled a plan to grow tourism to 10% of GDP by 2035, aiming for 10 million visitors a year.

Air Defense Upgrade: Iraqi PM al-Zaidi chaired an Air Defense Command meeting on boosting airspace protection and speeding contracts for advanced foreign systems, as recent strikes keep spilling into Iraq. Anti-Corruption Crackdown: Baghdad’s Integrity Commission says it seized nearly $7m and gold bars from a detained electricity ministry undersecretary, while separate cases recovered $20.34m and 60kg of gold tied to the former deputy oil minister, plus another $26m-plus haul in the wider sweep. Oil Routes & Prices: Iraq says August exports have rebounded to about 2 million bpd, and lawmakers say Baghdad is holding talks with the US and Iran to keep Hormuz tanker passage uninterrupted; meanwhile, the Kirkuk-Ceyhan pipeline transit fee is reported at $1.62 per barrel under a one-year extension. Currency Watch: The dinar’s parallel USD rates in Baghdad/Erbil/Basra stayed above the central bank peg, and the telecom minister reiterated that redenomination is finalized, drawing criticism. Diplomacy & Business: Iraq seeks economic openness with EU partners (including Italy) and Japan investment, while Iran’s central bank chief met Iraqi officials to tackle business hurdles. Regional Security: Drones were intercepted over Erbil, underscoring Baghdad’s struggle to rein in Iran-backed attacks. US-Iran Backchannel: Reports say the Trump administration used Iraq’s KRG leader Nechirvan Barzani as a secret go-between to contact IRGC commander Ahmad Vahidi. Energy Diversification: Lebanon hosted talks on reviving the Kirkuk-Tripoli pipeline as an alternative Mediterranean export corridor.

Oil Exports Surge: Iraq says August daily exports have rebounded to about 2 million barrels per day, the highest since the Iran war began, as Baghdad leans on alternative routes and boosts terminals. Anti-Corruption Crackdown: Courts report seizing $26m in cash and 60kg of gold in the case of former deputy oil minister Adnan al-Jumaili, with investigations still ongoing. Energy Shortfall Response: Prime Minister Ali al-Zaidi orders a push to double electricity capacity in 2027, including buying large volumes from neighbors and expanding local generation. Kurdistan Security Pressure: Drone and missile attacks on Erbil and surrounding areas continue amid uncertainty over who is behind them, with the Sept. 30 weapons deadline looming. Public Safety Enforcement: Kurdistan civil defense says it has shut 900 non-compliant commercial buildings over fire-safety violations. Regional Energy Links: Lebanese officials meet an Iraqi delegation on reviving the Kirkuk–Tripoli pipeline as a Mediterranean re-export route. Judicial Cooperation on ISIS Detainees: Iraq and Syria agree to form joint judicial committees to review ISIS detainee cases transferred to Iraq. Customs Revenue Jump: Iraq’s customs collected 2.5 trillion IQD in the first seven months of 2026, matching all of 2025.

Border Security & Smuggling Crackdown: Iraq and the Kurdistan Region renewed coordination on border security and anti-smuggling efforts, with Iraqi National Security Adviser Qasim al-Aboudi meeting Masoud Barzani in Erbil as a joint Baghdad-Erbil committee reviewed the Iran-Iraq security agreement. Weapons Under State Control: Iraq’s interior ministry says more than 600 tribal sheikhs cooperated in registering tribal weapons, as Baghdad pushes to keep arms under state authority. Electricity Push: PM Ali al-Zaidi told the electricity ministry to plan for “doubling” power production and distribution in 2027, targeting 30,000 MW domestic capacity plus major imports. Oil Export Diversification: Lebanon and an Iraqi delegation met in Beirut to revive the historic Kirkuk-Tripoli pipeline as a Mediterranean re-export route, while Iraq’s oil exports reportedly hit about 2 million bpd in August. Anti-Corruption at Ports: The PM ordered faster border-port automation and daily reporting on revenues, aiming to curb fraud, smuggling, and illicit financial flows. Security Operations: Iraqi forces killed three terrorists and seized an ISIS weapons cache in Diyala and Anbar, and also dismantled an international drug network, seizing 90 kg of narcotics. Road Safety: A bus-truck collision in Nineveh killed 7 and injured 23, with authorities investigating claims the driver fell asleep. Earthquake Report: Seismic observatories recorded an earthquake near Sulaimaniyah, followed by aftershocks.

Oil & Industry: Iraq’s Ministry of Oil signed an agreement with Japan’s JGC to resume work on the Basra South Refineries FCC complex, aiming to boost high-octane gasoline, diesel and LPG output and cut fuel import costs. Customs & Anti-Corruption: Iraq’s General Customs Authority collected 2.5 trillion IQD in revenues in the first seven months of 2026, matching all of 2025, as automation and digital border controls curb evasion. Security: Iraqi forces carried out counter-terror operations in Diyala and Anbar, arresting three terrorists and seizing an ammunition cache. Drugs Crackdown: Authorities dismantled an international drug smuggling network in Iraqi waters, seizing 90 kg of hashish and arresting three suspects, including a foreign national. Regional Security Pressure: Iran-backed militia leaders, including Badr, rejected any government plan to forcibly disarm armed factions ahead of the Sept. 30 state-weapons deadline, warning it could spark internal strife. ISIS Detainees: Iraq and Syria agreed to form joint judicial committees to review ISIS detainee cases transferred to Iraq. Energy Exports: Iraq reported average exports of about 2 million bpd since early August, the highest since the Hormuz crisis began. Kurdistan Attacks & Fallout: Drone and missile strikes continue hitting Erbil and other areas in Kurdistan as Baghdad prepares to enforce weapons under state control. Infrastructure Talks: Lebanese officials met an Iraqi delegation in Beirut to revive the Kirkuk-Tripoli oil pipeline as an alternative export corridor to the Mediterranean.

Oil & Exports: Iraq’s oil exports have climbed to about 2 million bpd since early August, after the Strait of Hormuz disruptions, with the ministry citing ongoing talks to stabilize flows. Anti-Corruption: Prime Minister Ali al-Zaidi made border ports a priority, ordering faster port automation, daily reporting, and tougher action on drug and medicine smuggling; separately, integrity forces detained an electricity ministry undersecretary over alleged financial violations. Militias & Security: Iran-backed factions warned Iraq against forcibly disarming armed groups ahead of the Sept. 30 deadline, saying it could trigger internal strife; meanwhile, Iraq’s PM’s team says the first 100 days are a push toward state control of weapons. Hormuz Tensions: UAE blamed Iran after drones hit ADNOC-linked tankers in the Strait; Iraq also reported drones shot down over Erbil with no casualties. Diplomacy & Regional Links: Lebanon hosted talks on reviving the Kirkuk–Tripoli pipeline as Iraq seeks alternative export routes to the Mediterranean. Budget Watch: Iraq’s parliament is set for the first reading of the 2027 budget next week. ISIS Prisoners: Iraq and Syria agreed to form judicial committees to review ISIS detainee cases transferred to Iraqi prisons.

Security & Sovereignty: PM Ali al-Zaidi’s “first 100 days” are being framed as a shift toward state control of weapons and a “new phase” of security stability, as Baghdad presses to rein in Iran-backed militias ahead of the Sept. 30 coalition exit. Anti-Corruption: Iraq’s Integrity Commission arrested an electricity ministry undersecretary tied to transmission and distribution, as the crackdown widens. Drones in Kurdistan: Three drones were shot down over Erbil, with other reports of intercepted drones and wreckage near the airport; no casualties were reported, but airport operations were briefly disrupted. Regional Diplomacy: Iraq rejected “sovereignty violations” during security talks with Saudi Arabia, while Iraqi officials also met Syrian counterparts in Damascus to expand judicial cooperation, including committees on detainees. Customs & Digital Reform: Baghdad and Erbil agreed to roll out a unified digital ASYCUDA customs system, aiming to standardize border earnings and reduce leakage. Energy Routes: Lebanon and Iraq discussed reviving the Kirkuk–Tripoli pipeline as Baghdad seeks alternative export corridors beyond Hormuz. US Withdrawal Watch: Multiple reports say the US is on track to complete its remaining pullout by Sept. 30. Business & Daily Life: A Lebanese restaurant, Al Beiruti, plans to open in Baghdad’s Iraq Mall, adding to the capital’s growing retail scene.

US-Iraq Sovereignty Deadline: Iraq and the U.S. reaffirmed Sept. 30 as the “full and final” end date for the U.S.-led coalition’s mission, with Iraq saying Oct. 1 starts a new phase and no foreign forces will remain on its territory. Arms Under State Control: As the deadline nears, Baghdad is pushing to restrict weapons to the state; Iran-backed factions are resisting, and reports say IRGC Quds Force chief Qaani urged Iraqi groups to keep their arms. Air Defense Push: Prime Minister Al-Zaidi inspected Iraq’s air-defense command, stressing readiness ahead of coalition withdrawal and mounting pressure over Iran-backed militias. Customs Overhaul: Baghdad and Erbil agreed to fully adopt the digital ASYCUDA customs system and share non-oil border earnings 50-50, aiming to cut revenue leakage and corruption. Saudi-Iraqi Security Talks: Iraqi security officials met Saudi Defense Minister Prince Khalid bin Salman as Riyadh reiterated support for Iraq and discussed drone and air-defense coordination after recent cross-border strikes. Judicial Cooperation: Iraq’s top judge Faiq Zidan met Syria’s al-Sharaa in Damascus to set up joint committees on ISIS detainees transferred from al-Hol. Energy Diversification: Lebanon and Iraq discussed reviving the Kirkuk-Tripoli pipeline as an alternative export corridor to reduce reliance on Hormuz. Kurdistan Fuel Relief: KRG increased fuel and gas supplies to ease a worsening petrol crisis. Baghdad Anti-Corruption: The Integrity Commission head warned there is no safe haven for looted funds or fugitives and called for stronger cross-border asset recovery. Human Interest: A rare blind pink fish ecosystem was reported in Anbar’s underground waters near Haditha.

US-Iraq Withdrawal: Iraqi PM Ali al-Zaidi reaffirmed Sept. 30 as the “fixed and final” deadline for the US-led anti-ISIS coalition to end its mission, with Oct. 1 marking a new phase of full Iraqi sovereignty and no foreign military presence. Air Defense & Sovereignty: Ahead of the pullout, Zaidi ordered upgrades to Iraq’s air defense readiness, stressing stronger systems to protect Iraqi airspace and prevent any use of Iraqi territory as a launch pad. Arms Under State Control: The government is pushing legislation to limit weapons to state authority, a move that could raise tensions with armed factions. Security Crackdowns: Baghdad saw Interior Ministry operations seizing 20+ locally made drones and arresting suspects, while Iraq’s National Security dismantled an international drug smuggling network in Kirkuk. Kurdistan Fuel & Customs: Erbil says it’s entitled to more crude for local use amid gasoline shortages, and Baghdad and Erbil reached a “final agreement” on ASYCUDA customs implementation with a 50-50 border revenue split. Regional Diplomacy: An Iraqi security delegation is set to visit Saudi Arabia to discuss drone attacks and security concerns after recent strikes on PMF sites. Oil Route Talks: Lebanese officials met an Iraqi delegation in Beirut on reviving the Kirkuk-Tripoli pipeline as Baghdad seeks alternative export corridors beyond Hormuz.

U.S.-Iraq Withdrawal: Iraqi PM Ali al-Zaidi reiterated that Sept. 30 is the “fixed and final” deadline to end the international coalition mission and complete the U.S. pullout, with Oct. 1 marking Iraq’s “new day” free of foreign forces and with weapons under state control. Kurdistan Fuel Crunch: The KRG said it’s ready to negotiate with Baghdad over subsidized fuel, arguing the current 50,000-barrel allocation for domestic use is too low and should be more than doubled. Regional Security Talks: An Iraqi security delegation headed by Lt. Gen. Abdul Amir al-Shammari is set to visit Saudi Arabia to discuss drone threats and broader regional security coordination. Oil Route Diversification: Lebanese officials met an Iraqi delegation in Beirut to revive the historic Kirkuk-Tripoli pipeline as part of Baghdad’s push for alternative export routes to the Mediterranean. Kurdistan Drone Incidents: Four drones crashed in Erbil province, damaging a residential building and sparking fires; responsibility was unclear amid ongoing attacks. Anti-Corruption: Iraq’s PM al-Zaidi said there are “no red lines” in the crackdown on corruption, following arrest warrants for a former labor minister.

Weapons under state control: Iraqi PM Ali al-Zaidi ordered draft legislation to restrict weapons to authorized state institutions, aiming to curb the spread of arms held by factions including the PMF. US pressure stalls government: A US “veto” has reportedly stalled talks to fill vacant posts in al-Zaidi’s government, with Washington pushing for militia disarmament despite Iranian objections. Iran-Kurdistan security flare-up: Drones crashed in Erbil (Soran, Khalifan, Harir) with no casualties, as Iran-linked attacks on Kurdish opposition groups continue to raise tensions in northern Iraq. Oil route scramble: Lebanon is preparing to revive the Kirkuk–Tripoli pipeline as a storage and re-export hub, while Iraq also looks at new northern pipeline routes to diversify exports amid Strait of Hormuz disruption. Iraqi economy pressure points: Delivery firms warn that rising licensing costs and overlapping regulations are pushing more than 25 companies to close daily, squeezing small businesses and customers. Local tragedies: Baghdad recorded three suicides within 24 hours, including a 20-year-old woman found hanging.

State Control of Arms: Iraq’s PM Ali al-Zaidi ordered draft legislation to put all weapons under exclusive state control, as the Sept. 30 disarmament deadline nears and Baghdad warns armed groups will be treated as “outlaws.” Iranian Pressure on Disarmament: Iran’s Quds Force chief Esmail Qaani reportedly urged factions not to surrender weapons yet and pushed for a political deal with Baghdad to avoid clashes with Iraqi forces. Anti-Corruption Drive: Iraq’s integrity authorities say they detained 210 officials and figures in the “Dawn Crackdown,” while the Federal Integrity Commission says it stopped a land-seizure scheme in Anbar involving forged decisions. Kurdistan Gasoline Crisis: Lawmakers in Erbil demand Baghdad raise Kurdistan’s crude quota or compensate with gasoline-equivalent fuel as petrol shortages and prices spike. Oil & Exports: Iraq plans to boost gas output from the Ajeel field toward 300 million standard cubic feet per day; meanwhile US crude imports from Iraq reportedly fell to zero in the latest four-week average. Regional Security Talks: Iraq, Jordan, Syria and Kurdistan Region officials met in Amman to coordinate border security and counter cross-border threats. Diplomacy: Baghdad condemned Colombia’s recognition of Israeli sovereignty over the Golan Heights as legally void. Environment: Sulfur-like odors returned in Baghdad for a second day, with residents linking them to waste burning.