AGP Executive Report

Iraq Anti-Corruption Drive: Iraq’s Integrity Commission summoned officials from a state-owned bank over suspected financial and administrative corruption tied to checks linked to North Refineries Company, as the “Dawn Crackdown” continues to expand beyond 67 arrests and targets 200+ suspects. Commercial Fraud Crackdown: The National Security Service arrested nine suspects across four provinces in operations against commercial fraud, food counterfeiting, and public health violations, including seizure of 675 tons of rice and shutdowns of unlicensed facilities. Oil Export Bottleneck: About 8.3 million barrels of Iraqi crude remain stranded awaiting shipment, leaving Iraq among the biggest holders of delayed exports and highlighting how Strait of Hormuz disruptions have hit revenue. Basra Jobs Funding: Basra’s governorate secured Ministry of Finance approval for salaries of 13,000 contract employees through end-2026 after coordination with the province. Monetary Update: Iraq’s currency in circulation rose to 112.896 trillion dinars by end-April 2026, up from 99.799 trillion at end-2025. Press Freedom: Al-Anbar’s journalists syndicate head rejected a report ranking the province near the top for press freedom violations, saying reporters operate freely and citing limited past arrests. Regional Trade Talks: A Jordanian ministerial delegation met Iraq’s PM to discuss boosting trade and investment, including the Basra–Aqaba oil pipeline and energy cooperation. Kirkuk-Ceyhan Pressure: Türkiye pressed Iraq to run the Kirkuk-Ceyhan pipeline at full capacity ahead of a July 27 deadline, warning of export stoppages if no strategic oil transport deal is reached. US Cash to Iraq Resumes: The US resumed air shipments of dollars to Iraq after a months-long pause linked to Iran-related tensions, with the cash used mainly for retail and FX demand. Kurdistan Deal Watch: Genel Energy agreed to buy Capricorn Energy for $360m cash, expanding its MENA footprint with assets spanning Egypt and Iraqi Kurdistan.

US-Iraq Cash Flows: The US has partially resumed air shipments of US dollars to Iraq after a months-long suspension, with Iraq’s PM spokesman saying the “problem has been resolved” and a financial adviser confirming transfers restarted; the earlier halt targeted about $500m in cash and some security cooperation amid US pressure on Baghdad to rein in Iran-backed militias. Faw Port Build-Out: Iraq plans to invite bids for the remaining piers at the Grand Faw Port, after South Korea’s Daewoo E&C completed five main jetties under a $2.6bn deal; officials say smaller berths could be finished in the second half of the year before full commissioning. Iran-US Talks in Doha: Indirect US-Iran technical talks in Qatar ended without clear progress on a lasting peace, focusing on Strait of Hormuz shipping management and unfreezing Iranian funds, with the next meeting expected after Khamenei funeral processions. Kurdistan Governance Risk: Iraq’s Kurdistan Region faces a growing “two administrations” risk as the regional parliament remains stalled since elections, leaving the cabinet in caretaker mode. Health & Trade: Daewoong Pharmaceutical signed a $93.4m Envlo supply/export agreement covering Iraq and other MENA markets, targeting approvals in Saudi Arabia this year and launches from 2027. Shipping Resilience: An Iraqi crude tanker, MT Sanmar Herald, safely berthed at Paradip Port after a high-risk voyage near Hormuz, despite shrapnel damage during hostile conditions.

Iraq Anti-Corruption Push: Prime Minister Ali Al-Zaidi terminated adviser Khaled Abdulwahid Kabyan’s contract after he lacked financial clearance for state funds, underscoring the government’s widening graft crackdown. Anti-Graft Recovery: Iraq’s Supreme Judicial Council said it recovered 19 billion dinars (about $14.5m) in the Iraqi Airways corruption case tied to manipulated deposit statements. Oil Sector Dealmaking: Basra Oil Company signed a non-disclosure agreement with Chevron to share technical and financial data for evaluating the West Qurna 2 field, as Iraq keeps courting major US energy partners. Energy & Trade Links: Iraq imported $1.541bn of edible fruits, nuts, citrus peel and melons in 2025, up 23.3% year-on-year, with citrus fruits and bananas leading. Regional Finance: Region Trade Bank named an expanded international board focused on financial integrity and sanctions compliance, signaling Iraq’s push for stronger global banking ties. Governance & Diplomacy: Al-Zaidi met GCC Secretary-General Jasem Albudaiwi to discuss boosting cooperation and relations with Gulf states.

Banking & Governance: Region Trade Bank named a new board of international financial-integrity and supervision experts, signaling deeper compliance focus as Iraq’s banking links grow. Anti-Corruption Crackdown: Baghdad’s Green Zone saw commando deployments and vehicle inspections as “Dawn Crackdown” arrests and asset seizures expand, with electricity and oil distribution leadership also reshuffled amid probes. Telecom & Data Transit: Iraq Telecom Summit updates point to wider fiber expansion and a cross-border internet transit push via a Qatar deal, aiming to position Iraq as a regional data gateway. Trade & Logistics: Gulftainer launched its first dedicated feeder service connecting the UAE to Umm Qasr, building an integrated corridor for warehousing, customs facilitation and faster cargo flows. Energy & Shipping Risks: An Iraqi oil tanker was destroyed after overturning in Syria, while Hormuz transit tensions continued after a ship ran aground, keeping oil-market nerves elevated. Oil Market Outlook: Goldman Sachs expects a return to global crude supply surplus as Hormuz flows normalize and Iran-related disruption fades. Pilgrimage Services: The PM issued directives to improve Arbaeen service delivery, including transport, power, fuel, medical care and telecom support for pilgrims.

Anti-Corruption Crackdown: Iraq’s “Dawn Crackdown” is widening fast, with the National Security Service reporting 301 arrests in June across terrorism, drugs, fraud, blackmail, extremist links, and even petroleum smuggling, while authorities shut down 80 commercial sites and seized 352 tons of expired food. Court & Business Risk: A Baghdad court ordered detained lawmaker Alia Nassif to pay damages over media statements that harmed a plaintiff’s reputation, a reminder that reputational and legal exposure is rising alongside the purge. Oil Sector Oversight: In Basra, confessions tied to former Oil Ministry undersecretary Adnan al-Jumaili helped trigger the arrest of a senior South Refineries Company official; in Karbala, an MP alleges hundreds of foreign workers at the refinery lack proper permits and that multimillion-dinar service contracts may violate labor and financial rules. Airline Corruption Recovery: Iraq’s judiciary says it recovered about 19 billion dinars (around $12.3m) in an Iraqi Airways corruption probe involving manipulated deposit records. Regional Development Funding Gap: Al-Diwaniyah says it needs about $763m (one trillion dinars) to finish development projects through mid-2027, citing shortfalls in allocations and the need for installment funding. Security & State Control: Prime Minister Ali Al-Zaidi reiterated there’s “no evidence” attacks on Gulf states came from Iraqi territory and set Sept. 21 as a deadline for armed factions to surrender weapons. Finance Governance: Region Trade Bank announced a new board focused on financial integrity and sanctions compliance, signaling continued modernization in Iraq’s banking sector.

Anti-Corruption Push: Iraq’s new PM Ali al-Zaidi ordered the Finance Ministry to open a dedicated account for recovered illicit funds, as the Integrity Commission prepares an asset-recovery draft law for parliament and continues digital steps to freeze assets abroad. Green Zone Raids: “Operation Dawn” continues to widen, with reports of cash seizures and arrests spanning Sunni and Shi’ite politicians, while officials say no immunity will be granted to corrupt figures. Oil Market Pressure: Iraq’s SOMO offered steep discounts on Basrah crude for July loadings, but traders are watching Strait of Hormuz passability closely. OPEC Tension: Iraq is pressing for a higher OPEC quota amid revenue strain and has floated options if quotas aren’t raised, raising the risk of a producer-bloc standoff. Regional Energy Links: Iraq and Syria agreed to form a joint committee to rehabilitate and coordinate energy transit, including an Iraq-to-Syria pipeline revival. Diplomacy & Trade: Iraq’s FM Fuad Hussein visited Syria to deepen cooperation after Assad’s fall, while Thailand approved plans for Iraq to reopen its embassy—aiming to boost energy, trade, investment, and tourism.

OPEC Pressure & Oil Revenues: Iraq is pushing for a bigger OPEC production quota as the Iran-war fallout squeezes state revenues, with officials saying Baghdad may consider all options—including reassessing OPEC membership—if quotas aren’t raised. Anti-Corruption Crackdown: Iraq’s “Dawn Crackdown” is expanding fast: 47 arrests reported in the Green Zone so far, with PM Ali al-Zaidi promising “no red lines” and no immunity for corrupt officials; the Central Anti-Corruption Criminal Court also jailed a former tax chief and his wife for money laundering and ordered large fines and asset confiscations. Regional Trade & Energy: Iraq and Syria agreed to deepen cooperation via joint committees covering energy, water, agriculture, transport, and border crossings, including plans to rehabilitate the Kirkuk–Baniyas oil pipeline. Kurdistan Backs Reforms: Kurdistan political blocs praised the anti-graft drive and said the region won’t shelter corrupt figures. Hormuz & Shipping Costs: Iran says it will manage Strait of Hormuz transit and collect fees if Oman won’t align, while UN experts raised alarm over a Dubai resident detained in Iraq for years. Energy Sector Update: BP resumed work in Kirkuk after a security pause, discussing oil-field development and production plans.

Anti-corruption crackdown: Iraq’s PM Ali al-Zaidi says there will be “no immunity” for corrupt officials as arrests expand from a first phase; authorities report 67 detentions in 24 hours, including lawmakers, officials and business figures, with more than 200 suspects expected. Banking & liquidity: Central Bank of Iraq data show total bank deposits fell to $66.8B (104.727T dinars) at end-April 2026, down from end-2025, while total credit also declined. Oil market risk: With the Strait of Hormuz still central to global supply, US-Iran talks have been moved to Qatar after strikes and threats; both sides say they will stand down “for now,” but shipping and pricing remain sensitive. Regional diplomacy: Iran’s FM Abbas Araghchi visited Iraq amid Hormuz tensions, underscoring Baghdad’s role in regional security discussions. Business & investment: Iraq’s transport sector scored a win as Iraq secured a third term in the Arab Union for Land Transport. Public safety: In a separate case, Mumbai police arrested a man accused of distributing zinc phosphide-laced capsules during Muharram, highlighting how quickly public health risks can become major investigations.

Anti-Corruption Crackdown in Baghdad: Iraqi forces sealed off the Green Zone and raided homes and offices of senior figures, detaining 47 officials, including MPs and businessmen, in a major corruption push under PM Ali al-Zaidi, with arrests tied to testimony from former Oil Ministry undersecretary Adnan al-Jumaili and reports of seized funds. Legal Defense Blocked: Iraq’s Bar Association refused to provide legal defense for detainees in the crackdown, saying it could be a turning point only if accountability and asset recovery are sustained. Iraq-US Money Talks: Iraq says PM al-Zaidi will discuss releasing about $30B in Iraqi funds held in the US next month, framed as support for salaries and for coping with Strait of Hormuz fallout. Strait of Hormuz Pressure on Iraq’s Economy: Iran’s FM Abbas Araghchi told Iraq that Tehran alone will restore Hormuz shipping to pre-war levels within 30 days, while Japan’s NYK warns mines have left navigation “extremely limited,” keeping routes constrained. Regional Escalation: Iran launched missiles and drones at Kuwait and Bahrain after US strikes, drawing broad condemnations and raising fears of further disruption to Gulf trade.

Anti-Corruption Crackdown in Baghdad: Iraqi security forces sealed off the Green Zone and carried out raids early Sunday, targeting “several politicians” and lawmakers over financial and administrative corruption, with Counter-Terrorism Service units and judicial arrest warrants; reports said at least eight people were arrested, including MPs, as the new PM Ali al-Zaidi pushes a state-wide integrity drive. Green Zone Raid Details: AFP footage showed heavy vehicles and raids inside compounds and homes, while entrances were closed and checkpoints tightened, with students reportedly allowed through using exam cards. Iraq-US Signals: Al-Zaidi sent “positive signals” to Washington ahead of a mid-July visit, urging armed factions to work through the state and emphasizing an economic partnership with the US while keeping ties with Iran based on “good neighborliness.” Hormuz Impact on Iraq: Iraq’s foreign minister said closing the Strait of Hormuz hit Iraq’s financial and economic situation, underscoring how shipping chokepoints can quickly spill into domestic budgets. Kurdish Yazidi Pride in Sports: Germany striker Deniz Undav’s World Cup success is being celebrated by Yazidi and Kurdish communities, with his story tied to the legacy of the 2014 Sinjar attacks. World Cup Tie-Breakers: Senegal’s 5-0 win over Iraq boosted goal difference and helped them advance, while Iraq’s tournament ended in the group stage.

Fuel Market & Governance: Baghdad fuel station investors say Oil Products Distribution Company short-delivers 36,000-liter tankers by about 500–1,000 liters, then fines stations four times the value, as gasoline shortages since late May keep queues and black-market demand rising. Energy & Environment: The World Bank reports gas flaring hit a six-year high in 2025—167 billion cubic meters, up 6%—with flaring growth outpacing crude output, costing about $54bn. Healthcare Infrastructure: Heet’s 200-bed General Hospital in Al-Anbar is 72% complete, with remaining works and equipment installation pushing completion to April 2027 (possibly earlier). Oil & OPEC Politics: Iraq is pushing for reassessment of OPEC quotas amid debate over an exit; Baghdad also signals it won’t leave the cartel. Security & Sovereignty: Prime Minister Ali al-Zaidi says the US-led coalition’s combat mission ends next September and forces will leave Iraq, while Iraq insists weapons must stay within state institutions. Business & Trade: Iraq’s e-commerce boom is driving growth but also fraud and consumer mistrust. Regional Risk: Iran-US tensions around the Strait of Hormuz keep shipping and energy corridors in focus, with new route changes and drone/ship incidents raising uncertainty.

OPEC & Iraq Oil Policy: Iraq’s oil ministry says OPEC has started gradually restoring Baghdad’s pre-war production allocations and that Prime Minister Ali Faleh Al Zaidi hasn’t discussed leaving the cartel, after Reuters reported Iraq was weighing an exit if quotas aren’t raised amid Strait of Hormuz disruptions. Energy Markets & Shipping Risk: The Strait of Hormuz remains a flashpoint as the US carried out strikes in response to an attack on a commercial vessel, while Iran’s IRGC warns ships may need prior approval to transit—raising fresh uncertainty for oil flows and regional energy security. Digital Security: Cloudflare’s Project Galileo report highlights intensifying cyber threats against civil society groups, with DDoS attacks the most common risk. Iraq in the Spotlight (Sports): Senegal thrashed Iraq 5-0 in the World Cup group finale, ending Iraq’s campaign without a point, while Iraqi fans in Toronto faced the added emotional weight of Ashura during match week. Business & Trade (Regional): Baghdad is also linked to EU energy talks after Iraq floated an OPEC exit warning, underscoring how oil policy is driving broader investment and diplomacy.

OPEC Quota Clash: Iraq’s oil ministry says Prime Minister Ali al-Zaidi did not raise any plan to withdraw from OPEC, while Baghdad pushes for a higher production quota through OPEC’s technical, consensus-based process. Public Finance Shock: A senior Iraqi official reignited a dispute over “missing” $140bn in public revenues amid corruption probes tied to oil and electricity contracts, as Baghdad seeks ways to cover salaries after export pressure. Kurdistan Business Growth: Kurdistan Region reports 43,000 registered enterprises, including 3,000 foreign firms, citing eased registration and lower costs to spur private-sector activity. Oil Shipping Risk: UN maritime plans were paused after a projectile hit an Evergreen cargo ship near Oman; analysts warn that “safe corridors” fail without enforcement as Hormuz traffic remains a key energy lifeline. Ashura Security in Iraq: Karbala implemented its Ashura security plan with field supervision across routes; authorities treated tens of thousands of pilgrims and reported major medical operations. World Cup, Iraq-Senegal: Iraq plays Senegal in Toronto’s final group match, with fans expected to march to the stadium; the game is a must-win for Iraq’s slim qualification hopes.

OPEC Pressure on Iraq’s Oil Policy: Reuters reports Iraq is weighing “all available options,” including leaving OPEC, if its production quota isn’t significantly raised after the Iran-war disruption to Strait of Hormuz exports. Iraq’s July quota is cited at 4.378 mbpd, but output remains below capacity; officials say the financial squeeze is serious and OPEC allies should treat the quota request urgently. SOMO Oil Sales in Focus: Iraq’s state marketer SOMO issued a tender to sell Basra Heavy and Basra Medium for July loading, with pricing linked to Dated Brent (Europe), Argus Sour Crude Index (US), and Oman-Dubai (Asia). GCC Push on Hormuz Security: GCC foreign ministers, with US Secretary of State Marco Rubio in Manama, rejected any tolls or attempts to control the Strait of Hormuz and stressed freedom of navigation under international law. Iran Deal Doubts for Gulf Security: Commentary around the US-Iran framework highlights that implementation is hard and that Gulf security concerns are not fully addressed in the 14-point document. Ashoura in Iraq Amid Regional Tensions: Large Shiite crowds marked Ashoura in Karbala, with the observance taking place against the backdrop of renewed Iran-related war fallout. World Cup Business Angle: Iraq’s must-win group match vs Senegal in Toronto drew thousands of fans, with local businesses reporting a boost from the tournament crowd.

Digital Trade & Connectivity: Iraq signed a deal with Qatar’s GBI to market cross-border internet transit capacity using a long-term IRU model, with the first foreign-currency payment received. The “Civilizations Road” fiber corridor links al-Faw to Rabia via a land route, aiming to cut latency and position Iraq as a digital transit hub. Oil Policy & OPEC Pressure: Reuters reports Iraq has considered leaving OPEC if quotas aren’t raised enough to match its output capacity after Hormuz-linked export losses; Baghdad says it’s weighing “all options” but currently plans to stay and seek higher production flexibility. Budget Outlook: Iraq’s 2026 federal budget is unlikely to be submitted due to delays, with officials shifting focus to drafting the 2027 budget and revising the budget law to reduce the deficit. Security & State Control: US Secretary of State Marco Rubio says Washington received “positive signals” from Iraq on weapons-control efforts, with Iraq implementing a state-authority integration/disarmament plan and a September deadline for armed factions. Regional Business Links: Nineveh discussed Turkish involvement in Mosul airport operations and northern industrial projects, while Iraq and Qatar also move to deepen logistics and trade corridors across the region.

OPEC Pressure on Iraq: Iraq’s oil ministry is warning it may consider “all available options” — including leaving OPEC — if its production quota isn’t significantly raised, as Baghdad faces a deep financial squeeze tied to the Iran war and needs more barrels to stabilize state revenues. Energy Markets: With Strait of Hormuz traffic improving after an interim US-Iran understanding, crude prices slid back toward pre-conflict levels, easing near-term supply fears even as traders watch for any renewed disruptions. Oil Export Reality Check: Separate reporting says Iraq’s exports have collapsed during Hormuz closures, with officials pushing for quota relief and export routes to recover output and cash flow. Ashura Logistics & Economy: Ahead of Ashura in Karbala, authorities deployed large-scale medical, inspection, and municipal services to handle millions of pilgrims — a reminder of how major religious events can quickly turn into local economic activity. Regional Cooperation: The League of Arab States and UNODC met in Cairo to coordinate Arab efforts against drugs, transnational crime, terrorism, corruption, and financial crimes, including Iraq’s participation.