AGP Executive Report

Iraq-Turkiye Energy Push: Prime Minister Ali al-Zaidi heads to Ankara to expand economic and security ties, with talks expected to include a pipeline linking Basra–Haditha–Ceyhan (and onward to Syria’s Baniyas) to reduce Gulf export risk. Anti-Corruption Clampdown: Iraq’s Federal Integrity Commission seized 2.5B dinars in Saladin from a former accounts official and uncovered properties tied to his wife, tied to a Rafidain Bank check case. Legal Accountability: MP Alia Nassif was ordered by the al-Karkh Court of Appeal to compensate an Interior Ministry advisor for insult and defamation over statements made during official duties. Arbaeen Logistics: Iraq reported 2.14M pilgrims entering since Muharram began, with security and services ramped up across border crossings and routes to Karbala. Diplomatic Friction: Ukraine rejected Iraq NSA Qasim al-Aboudi’s claims that Ukraine-backed groups attacked inside Iraq, calling them baseless and echoing Russian propaganda. Regional Trade Snapshot: Saudi Arabia said Iraq-Saudi trade hit about $1.7B in 2025, driven by non-oil exports and Arar border logistics. Food Trade Spillover: India’s rice exports rose 5% in Jan–Jun 2026 as non-basmati shipments offset basmati declines after the Iran war disrupted Gulf demand.

Mobile Health Access: Iraq’s rural veterans may soon get hospital-grade care via “GOHOSPITAL” mobile vans, with phased deployments expected late 2026 and January 2027, bringing diagnostics and clinician links to remote communities. Energy & Trade Routes: Lebanon proposed a Mediterranean transit corridor for Iraqi crude to reduce reliance on the Strait of Hormuz, while Iraq also pushed to expand exports through Turkey’s Ceyhan and revive the Kirkuk-Baniyas line toward Tripoli. Gas Debt Workaround: Iraq and Iran agreed to settle Iran’s gas import dues using goods (including food and medicine) instead of cash transfers under US sanctions. Kurdistan Supply Restart: Dana Gas began a cautious restart at the Khor Mor gas field after security assurances. Electricity Reform Push: Parliament endorsed measures to tackle power shortages, including reopening older Electricity Ministry corruption cases and launching subsidized solar financing. Oil Revenue Pressure: Iraq’s oil share in the federal budget fell to 84% in early 2026 as non-oil revenue rose. Security & ISIS: Joint forces arrested ISIS-linked suspects in Al-Anbar, seizing weapons, phones, cash, and funds-related items. Arbaeen Tourism: Foreign pilgrim entries topped 1.81M ahead of Arbaeen, supporting religious tourism demand. Press Freedom Risk: Iraq warned that restricting official ads and tenders to a unified electronic platform could shut down 20+ newspapers. Regional Tensions Spill Over: Saudi Arabia alleged drones fired from Iraq targeted oil facilities, prompting Iraq to order an investigation.

Iraq-Lebanon Energy & Trade: Iraqi PM Ali al-Zaidi met Lebanon’s PM Nawaf Salam in Baghdad, discussing a diversified economic partnership and using Lebanese territory as a gateway to the Mediterranean, with possible new oil pipeline cooperation. Iraq Digital Infrastructure: Uptime Institute partnered with Nineveh Governorate to advance Iraq’s digital transformation after the U.S.-Iraq Business Summit, aiming to strengthen regional digital infrastructure and attract investment. Iraq Anti-Corruption: Iraq seized over $125m and 380kg of gold/jewelry in the al-Jumaili oil corruption case, with assets hidden in caches and properties across Iraq and the Kurdistan Region. Regional Shipping Pressure: Bab el-Mandeb traffic fell sharply after Houthi attacks on Saudi oil facilities, while Strait of Hormuz remained subdued despite a US-Iran pause—raising risks for Iraq’s oil export flows. US-Iran Pause Talks: Mediators backed by Qatar and Pakistan reported progress toward renewed negotiations as both sides paused attacks for a second straight day, easing immediate escalation fears. Kurdistan-China Business Moves: China’s consul general in Erbil met Kurdistan officials and business chambers to push trade, investment, and people-to-people ties.

Iraq-Lebanon Energy Talks: Iraqi PM Ali al-Zaidi met Lebanese PM Nawaf Salam in Baghdad to push wider economic cooperation, with talks also floating an agreement on a possible new oil pipeline to the Mediterranean as an alternative route amid Strait of Hormuz disruption. Regional Diplomacy Under Pressure: Lebanon’s PM visit comes as Syria’s President Ahmad al-Sharaa said Damascus will not intervene militarily in Lebanon, but is ready to offer political options and stress the need for Lebanon to control weapons and security decisions. US-Iran Pause, Iraq on the Frontline: The US and Iran paused attacks for a second straight day while negotiations for an interim ceasefire continue; Iraq-based reports also note renewed drone activity around Erbil after Zaidi’s return. Oil Market Squeeze: With Hormuz risks deepening, oil prices pushed toward $100 before easing, while shipping reroutes and supply fears keep traders braced. Central Bank Overhaul: Iraq’s Central Bank approved a restructuring to strengthen oversight of non-bank financial institutions, adjust internal reporting lines, and reorganize key directorates ahead of implementation by July 30. Arbaeen Demand Boost: Iraq reported 1.5 million pilgrims entering since Muharram began, underscoring how religious tourism keeps feeding local business activity.

Oil & Trade Routes: Iraq’s cabinet approved steps to diversify crude exports, including a memorandum with Syria to move oil via new pipelines to the Mediterranean, aiming to cut reliance on Gulf and the Iraq-Turkey Ceyhan route amid repeated disruptions. Infrastructure Push: Iraq has completed preliminary designs for the Development Road Project and railway corridor, moving to detailed engineering for bridges, stations and technical facilities after talks with Turkey. Anti-Corruption Crackdown: Iraq’s judiciary seized IQD 27 billion in the Adnan al-Jumaili oil corruption case, with investigations continuing to trace assets and recover more funds. Border & Logistics: Kuwait reopened the Abdali crossing with Iraq after a drone attack caused damage but no casualties, restoring a key passenger and trade gateway. Regional Shipping Pressure: Iran says talks with Oman are advancing on safe passage through the Strait of Hormuz as the US-Iran standoff continues to disrupt maritime routes. Finance Oversight: Iraq’s central bank upgraded supervision of non-bank financial institutions to a general directorate to tighten regulation and reduce cash reliance. Non-Oil Revenue: Non-oil income hit a record 16% of total revenues, supporting Iraq’s push to diversify beyond crude. Transport & Tourism: Iraq plans regular ferry routes linking it with Iran, Kuwait, UAE and Saudi Arabia to revive maritime passenger travel. Local Jobs Dispute: Kirkuk Engineers Syndicate accused BP of sidelining local talent and demanded an 85% local hiring quota. Kurdistan Contract Employees: MPs asked to move Kurdistan contract workers onto permanent federal payrolls through the next budget bill.

Oil & Shipping Shock: Crude prices jumped sharply over three weeks, but analysts say the rally is capped by fading China demand and uncertainty around a US-Iran escalation that keeps Strait of Hormuz risk high, while Houthis continue striking Saudi export infrastructure. Iraq’s Energy Revenue Pressure: Iraq is pushing to expand crude exports via the Iraq–Türkiye pipeline and is also pursuing Mediterranean-linked routes to reduce reliance on Hormuz as disruptions threaten state revenues. Electricity Deal Momentum: Iraq’s electricity minister says new energy deals from recent visits to Washington and Tehran, plus regional interconnection projects, should lift generation capacity soon. Central Bank Overhaul: The CBI approved a restructuring to strengthen oversight of non-bank financial institutions, adjust internal reporting lines, and reorganize supervision of branches in Basra, Mosul, and Erbil. Non-Oil Revenue Record: Non-oil income hit a record 16% of total government income in May–June, highlighting a shift away from pure crude dependence even as Hormuz disruptions loom. Arbaeen Logistics: More than 1.27m foreign visitors entered Iraq since Muharram began, and Iran added two temporary air routes to boost Arbaeen flight capacity with Iraq. Governance & Oversight: Iraq’s Federal Board of Supreme Audit flagged large unsettled advances and unpaid treasury shares in its 2025 report, feeding pressure for tighter financial control. Regional Diplomacy: Iraq’s Victory Alliance backed PM al-Zaidi’s diplomacy with Washington and Tehran, arguing careful engagement is key amid Hormuz-linked trade and energy strain. Border Trade Update: Kuwait says Abdaly border crossing will reopen within 48 hours after a drone attack, signaling trade continuity with Iraq.

Iraq–Kuwait Security: Kuwait’s interior minister said drone attacks won’t derail Iraq ties, with Safwan-Abdaly border operations expected to resume soon after damage to Abdaly. Baghdad Heritage: Al-Turat Quarter faces collapse risk as cracked walls and neglect threaten residents, with calls for restoration of one of Baghdad’s oldest neighborhoods. Green Arbaeen Push: Iraq’s Green Observatory urged mawakibs to cut plastic, curb food waste, and improve waste collection during Arbaeen. Anti-Smuggling Crackdown (Kirkuk): Kirkuk seized 163 smuggling vehicles in 45 days, linking cases to corruption at checkpoints. E-commerce Expansion: JD.com partnered with Iraq’s GINI to expand online access via the SuperQi app and a direct supply chain. Regional Trade Shock: With US-Iran strikes widening and Hormuz disruption fears rising, shipping and energy risks are again weighing on regional commerce and costs.

Iraq Anti-Corruption Drive: Four contractors were arrested in Al-Diwaniyah during dawn raids over alleged irregularities tied to municipal funds, with residents reporting cash, gold and luxury vehicles seized. Public Works Bottleneck: Iraq’s stalled public service projects have topped 1,800 nationwide, including 600+ in Baghdad, blamed on budget approval delays and weak investment allocations. Religious Tourism Boost: Najaf’s Arbaeen season is reviving local trade as vendors and shoppers fill streets near Imam Ali Shrine, with many families relying on the pilgrimage for income. Iraq Diplomacy & Trade: Iraq is pushing to join the WTO, advancing technical steps in Geneva, while also seeking to balance ties with Washington and Tehran via a Tehran visit that produced railway and city-twinning plans. Regional Shock to Energy Flows: The US-Iran conflict keeps escalating around Hormuz and Red Sea shipping, with drones hitting northern Iraq near US forces and oil prices reacting to renewed shipping risks. Local Business & Finance: Iraq’s banking push continues, including steps to rejoin global correspondent channels and attract foreign investment finance.

Iraq-Iran Diplomacy: Iraqi PM Ali al-Zaidi wrapped up a Tehran visit with Iran, reaffirming a broader strategic partnership across political, economic, security, and infrastructure cooperation, while Iran rejected claims of a US-led ceasefire proposal delivered via Iraq as “misleading.” US-Iran Escalation in Iraq’s Neighborhood: Fresh US strikes continued for a 13th night as explosions were reported near a US base in Erbil, with sirens in Bahrain; the fighting is tied to control of key shipping routes and has pushed oil prices back above $100. Energy Route Shock: Gulf states are accelerating plans to bypass the Strait of Hormuz with pipelines and alternative corridors, but Red Sea risks are rising after Houthi attacks on Saudi tankers. Tariffs Hit Global Trade: The US rolled out new 10%–12.5% forced-labor tariffs on 60 economies, adding cost pressure for supply chains that matter to Iraq’s importers and regional logistics. Local Business/Heritage: Baghdad’s historic Black Gold Hotel will be rebuilt after safety assessments, a reminder that tourism and urban investment plans are still moving even amid regional turmoil.

US-Iran Escalation: Trump told Axios he’s “close to making a decision” on a “massive” strike on Iran, as the US warns it will hold Tehran responsible for any further Houthi attacks on Red Sea shipping. Red Sea Energy Shock: Houthis claimed they hit two Saudi tankers, pushing Brent back above $100 and raising fears of a second major chokepoint disruption. Iraq Diplomacy: Iraqi PM Ali al-Zaidi met Iran’s President Masoud Pezeshkian in Tehran, signing four cooperation deals covering road freight, the Khosravi–Khanaqin–Baghdad railway, sister-city ties, and public administration/training. Oil Infrastructure for Europe: Iraq and Syria signed an MoU to build an 800-km oil pipeline from Haditha to Baniyas, targeting about 2.5 million bpd capacity, with Chevron, Capital TI and Qatar’s UCC named for execution. Security/Politics in Iraq: Reports say the Iraqi “resistance” coordination committee has collapsed as factions prepare for a weapons-control transition. US Travel Warning: The US Embassy in Baghdad urged Americans to leave Iraq immediately amid volatile regional security and possible sudden disruptions.

Iraq-Iran Energy Diplomacy: Iraqi PM Ali Al-Zaidi arrived in Tehran for a two-day visit focused on energy, agriculture, investment and de-escalation, after a recent US trip; officials say talks also aim to secure continued Iranian gas supplies for Iraq’s power sector. Aviation Connectivity: Iraq opened temporary air routes linking Baghdad and Tehran flight information regions to cut flight times and fuel use, after regional escalation disrupted airspace and cost the aviation sector an estimated $43m; EU safety guidance still flags Baghdad airspace as high risk. Red Sea Oil Shock Risk: Iran-aligned Houthis claimed they struck two Saudi oil tankers in the Red Sea, raising fears of a second chokepoint alongside Hormuz; the US meanwhile carried out its 12th straight night of strikes on Iran, with Tehran warning against attacks on civilian infrastructure. Iraq Revenue Pressure: An Iraqi adviser said the war and Hormuz disruption cut oil export revenue by about $40–45bn through June, with exports down sharply and monthly state oil inflows falling from $7–8bn to about $1.5bn. Jobs Crunch: A new report highlights how Iraq’s growing graduate pipeline is colliding with a weak labor market, with oil dominating revenue but creating far fewer jobs than needed.

Iraq Energy & Trade: Iraq says the Middle East war has wiped out $40–45B in revenue so far, mainly from a ~90% drop in oil exports as Hormuz risks choke shipments and force production cuts. Pipeline & Logistics: Iraq and Syria have entered preparatory studies to rehabilitate the Kirkuk–Baniyas pipeline, with technical/economic work underway and Chevron managing the rehabilitation; authorities are coordinating border movement and security procedures. US-Iraq Investment Push: Iraq’s Energy Ministry signed energy-sector agreements with U.S. firms worth about $200B during PM Ali al-Zaidi’s U.S. visit, targeting higher crude output and associated gas capture. Banking Reform: Iraq’s banking overhaul is moving slowly: Baghdad says seven restricted banks are being reintegrated for dollar transactions, but Treasury clarified no banned banks fully regained access. Kurdistan Fuel Prices: The KRG ordered action to curb a gasoline price spike, setting caps for Normal/Improved/Super fuel and monitoring compliance. Health & Social Impact: Nineveh faces a cancer drug shortage as import delays and reduced funding stall oncology medicine deliveries. Legal & Rights: Baghdad lawyers are refusing custody-removal cases tied to contested Jaafari Code provisions in Iraq’s personal status framework.

Iraq Oversight Under Fire: Iraq’s Federal Board of Supreme Audit offices are accused of weak oversight, including allegedly missing corruption cases and failing to report violations, prompting calls for a full parliamentary review and possible legal action. Arbaeen Pilgrimage Logistics: Iran says 1.3M+ people have registered for Arbaeen travel to Iraq; Baghdad has allocated 52.5B dinars ($34.1M), leased 2,400 buses, and activated security plans as routes to Karbala open. Oil Deals vs. Hormuz Risk: Iraq’s oil ministry says US-linked energy deals signed during PM Al-Zaidi’s Washington visit total about $200B, aiming to expand crude output and gas projects, but Hormuz disruptions are already forcing some loading suspensions by regional buyers. Digital Payments Push: Iraq’s CBI is pushing e-payment firms to support the country’s digital expansion, alongside new easy-payment schemes for state employees. Regional Shockwaves from US-Iran War: US strikes on Iran continue for the 11th night as diplomacy stalls, while Houthis threaten shipping routes—raising costs and uncertainty for Iraq-linked trade and energy flows.

Iraq Anti-Corruption Push: Iraqi PM Ali al-Zaidi ordered ministers to relieve officials where “suspicions of corruption” appear, backing the Coordination Framework’s stance against political cover for graft cases. Oil & Investment Deals: Iraq’s oil minister said agreements signed with U.S. firms during Zaidi’s Washington visit are worth about $200bn, aiming to expand production capacity (currently cited at 4.8m bpd) and boost gas projects. Regional Energy Pressure: With U.S.-Iran fighting escalating and Houthis threatening Red Sea shipping, Iraq’s oil exports face renewed disruption risk as tankers and cargo plans get rerouted or delayed. Banking & Digital Finance: Iraq’s push for dollar access and bank rehabilitation continues in parallel with efforts to modernize payments and support the CBI’s digital transition. Trade Links: India reported $545m in exports to Iraq in Q1 2026, led by rice, frozen beef, and petroleum products. Governance Oversight: An Iraqi lawmaker criticized the Federal Board of Supreme Audit’s 2025 report as “late and incomplete,” urging integrity bodies to investigate losses and identify responsible parties.

US-Iran Escalation: The US launched its 10th straight night of strikes on Iranian targets after attacks killed three American service members in Jordan and Iraq, while Iran says it is now in “full-scale war” and reports attacks on tankers and US-linked sites across the region. Red Sea Shock for Oil Trade: Iran-aligned Houthis announced a maritime blockade of Saudi Arabia via Bab al-Mandeb, threatening another key shipping route as Strait of Hormuz tensions keep energy markets jumpy. Iraq Oil & Infrastructure Moves: Iraq’s T1 oil loading station in Al-Anbar is set to restart after more than two decades offline, and Halliburton signed to develop Bin Umar and Sindbad fields in southern Iraq to boost output and capture associated gas. Iraq’s Route Diversification: Iraq is pushing Syria as an alternative oil pipeline corridor to reduce reliance on Hormuz, with talks and deals tied to restoring cross-border infrastructure. Business & Industry: PepsiCo signed agreements to expand manufacturing in Iraq with local partners, while Atlas Copco is expanding via its distributor to support industrial reconstruction demand. Trade Signals: Chinese exports to Iraq fell sharply in H1 2026, with shipping delays and higher tariffs blamed.

Iraq Anti-Corruption Crackdown: Iraq’s Federal Commission of Integrity sealed Saladin Province HQ and issued arrest warrants for 55 employees tied to financial corruption cases, following earlier raids that uncovered billions of dinars in cash and luxury vehicles. Transport & Ports: The Transport Ministry reshuffled senior leaders at the General Company for Ports of Iraq, moving department heads and port directors across Umm Qasr and other facilities. Cross-Border Trade Boost: The Mandali–Somar crossing with Iran will reopen for Iranian passenger traffic later this week, starting with at least 1,000 visitors per day to ease pressure on the Al-Mundhiriyah crossing and support tourism and commerce. Energy Security Pressure: As the US extends strikes on Iran to a 10th consecutive night to reopen the Strait of Hormuz, oil and fuel prices stay volatile, raising costs that ripple into Iraq’s wider regional trade environment. Food & Agriculture Milestone: Iraq announced it produced “Super S” grade potato seeds, aiming to strengthen food security and reduce reliance on imports. Business & Skills: A Baghdad-based expert says Arab business schools must overhaul curricula and teaching methods for the AI and digital economy.