Iraq confronts economic crises with the "digital dinar." The parallel market is threatened with "extinction."
To the Ministerial Council for the Economy
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Samir Al-Nusairi
Finally, forecasts indicate that the Russian-Ukrainian war is nearing a halt with US intervention. We recall that when the war broke out three years ago, oil prices soared to over $110 a barrel, resulting in a surge in oil revenues for both rentier and oil-producing countries. This included Iraq, given its rentier economy.
Unfortunately, the achieved abundance was not utilized to activate the real economy. Rather, operational allocations in the general budgets increased, and the deficit exceeded 60 trillion dinars. Now, with the inevitable expectation that the war will soon end, oil prices will fall, and it is expected that its average price will reach less than 60 dollars per barrel. And we are still without other significant sources of national income. The Iraqi economy, God forbid, will enter a new economic and financial crisis. We expect the deficit to rise, the inflation rate to rise, and the government will be forced to borrow domestically and abroad.
Borrowing from the central bank will be required, foreign exchange reserves will decline, and external and domestic debts will rise. Since these expectations could soon be realized, they require swift action.
Here, we propose that the Ministerial Council for the Economy hold extraordinary sessions to discuss the expected new crisis and prepare for confrontation in a manner that preserves the path of economic, financial and banking reform and finds solutions and remedies to protect our national economy.
The Iraqi Economy: Challenges and Opportunities in Light of Global Financial Transformations
Speaking to Al Furat News Agency, Saleh highlighted "the importance of continued cooperation with the international financial community to alleviate external burdens and restrictions on foreign currency transfers."
He pointed out that "this approach reflects Iraq's strategy to combat foreign currency smuggling, by strengthening cooperation with international financial institutions to monitor illicit money flows. This contributes to the stability of the national economy and supports Iraq's ability to overcome global financial challenges."
Iraq: Top 5 Arab economy in 2024
Five Arab countries, including Iraq, accounted for 72% of the region’s GDP, which surpassed $3.6 trillion in 2024, according to a new report from the Arab Investment & Export Credit Guarantee Corporation ("Dhaman") released on Sunday.
The UAE, Saudi Arabia, Egypt, Iraq, and Algeria emerged as the leading contributors to the Arab economy, the report showed.
The forecast for 2025 suggests a 4.1% growth in the Arab economy, driven by strong performances in 14 countries, including nine oil producers, which together make up around 78% of the total GDP.
Despite economic challenges, the analysis highlights a boost in oil and gas export revenues, though crude oil production dropped by 4%, with uneven growth across the region.
Iraq continues to play a central role in the Arab economy, with its reliance on oil exports alongside government efforts to diversify income sources and increase investments in other sectors.
Per capita income in the Arab world reached $7,557 in 2024, with a modest increase expected to $7,602 in 2025. The population surpassed 467 million, growing by 2%.
Inflation in the region climbed to 12% last year, but is expected to ease to 8.5% in 2025. Unemployment rose to 9.7%.
Arab foreign trade saw a 3.6% increase, reaching $3.3 trillion, thanks to a 1% rise in exports and a 7% jump in imports.
Foreign exchange reserves across Arab countries grew by 3.7%, reaching $1.2 trillion, enough to cover imports for more than eight months.
The region's government debt decreased to 48.3% of GDP, with further reductions expected, dropping to 47.6% in the coming year.
Iran: Trump letter response pending
No decision has been made regarding the public release of US President Donald Trump’s letter, Iranian Foreign Ministry spokesperson Ismail Baghaei stated, on Monday.
“Media reports are mere speculation; the letter’s content aligns with the President’s general statements. We will respond appropriately after completing our reviews and investigations,” he stated.
Baghaei also clarified that the recent visit of the Foreign Minister to Amman was pre-planned and unrelated to the letter. “Rapid developments in the region require intensive consultations among states,” he added.
After studying it, Iran confirms the inevitability of responding to Trump's message.
Iran announced on Monday (March 17, 2025) that it will respond to US President Donald Trump's letter appropriately after completing the reviews.
Iranian Foreign Ministry spokesman Esmail Baghaei said in a press statement monitored by Baghdad Today: "We will respond to Trump's message after examining it from all angles, and we will respond forcefully to any violation of our territory and interests."
He added, "The messages we are receiving from America are contradictory, and the content of the message is not far from the public statements of the US President."
He stressed that "Tehran did not publish the content of Trump's message, and what is being published in the media is merely speculation."
Regarding Iranian-Turkish relations, Baghaei explained that "cooperation with Türkiye is progressing and that developments in the region do not affect our relations."
Iranian Foreign Minister Abbas Araqchi announced last Wednesday that he had received a letter from US President Donald Trump.
This comes days after Trump announced that he had written a letter to Iranian Supreme Leader Ali Khamenei urging Tehran to reach a nuclear agreement with the United States.
Araghchi added that he received the message during a meeting in Tehran with Anwar Gargash, diplomatic advisor to the UAE president.
BRI: China's call to Iraq
On Sunday, China’s diplomatic mission in Iraq outlined its positions on regional developments, trade relations, and foreign policy during a media briefing at the Chinese consulate.
China’s Consul General in Erbil, Jiu Jun, described Iraq as a key economic partner, particularly as a major energy supplier. He emphasized that Iraq could benefit from China’s Belt and Road Initiative (BRI), which includes infrastructure projects and trade corridors.
“Iraq has access to our logistics networks under the Belt and Road Initiative. There are significant opportunities for infrastructure development and trade routes that could benefit the country,” he stated.
He urged both the Kurdistan Regional Government and the federal government to align their economic plans with the BRI to attract greater Chinese investment and expertise.
“Beyond infrastructure, Iraq can gain from partnerships in petrochemicals and smart agriculture, which have strong economic potential,” he added.
On Gaza and Syria
Jun reaffirmed China’s commitment to peace and stability in the region through dialogue and negotiation.
He stressed the prolonged suffering in Gaza, noting that the world sympathizes deeply with its people. The war in Gaza, he added, has caused immense destruction and loss of life, and China hopes for a lasting ceasefire and a return to peace.
He also emphasized China’s strong support for reconstruction efforts in Gaza, underlining that the region should not be used as a political bargaining chip. "Gaza must remain in the hands of its people," he asserted.
Jun pointed out China’s ongoing diplomatic efforts in the region, including past mediation between Saudi Arabia and Iran, and its work to facilitate Palestinian reconciliation.
Regarding Syria, he observed the country’s political transition and expressed hope for stability through national reconciliation.
“The new Syrian government must ensure all factions are included in the dialogue and the new constitution,” he urged. “Syria should not become a haven for terrorist groups, as that would be dangerous for everyone.”
On China-US Relations
Jun characterized US-China relations as strained, attributing the tension to Washington’s approach to trade and foreign policy.
“As two major powers, we should maintain mutual respect, but the US remains stuck in a Cold War mentality,” he explained.
He criticized Washington’s recent decision to impose a 20% tariff on Chinese imports, calling it unfair. “China will respond with equal tariffs on American goods,” he added.
On Taiwan
Jun reaffirmed that Taiwan is an inseparable part of China, and any attempts toward independence are unacceptable. He stressed that Beijing continues to seek peaceful reunification. However, if Taiwan's authorities continue to pursue a hostile course toward independence, China would not hesitate to use force to prevent it.
Rafidain Bank Announces 6 Trillion Dinars Collected Electronically in One Year
The Government Revenue Collection Department at Rafidain Bank announced today, Sunday, unprecedented growth in electronic collection settlements for government department accounts during 2024, confirming that the total amount collected during 2024 amounted to more than 6.06 trillion Iraqi dinars.
The bank said in a statement received by the Iraqi News Agency (INA): "The pace of collection through electronic payment companies has increased significantly, reflecting the significant development in the adoption of digital systems in government revenue management."
The statement added, "The total amount collected during 2024 amounted to more than 6.06 trillion Iraqi dinars, recording a continuous increase compared to the first months of the year, according to statistics issued by Rafidain Bank." It indicated, "September 2024 witnessed the highest growth rate, with total settlements reaching 838.5 billion dinars, an increase of 11.12% compared to the previous month."
It continued, "At the beginning of 2025, the system continued its strong performance, with the total amount collected in January 2025 reaching approximately 707.5 billion dinars, followed by February with 689.2 billion dinars. Government departments also recorded a significant increase in the activation of the electronic collection system, with the number of activated entities increasing to 1,808 by February 2025, compared to 1,395 in December 2024."
Rafidain Bank affirmed that "this significant growth reflects the success of the state's efforts to promote digital transformation, reduce reliance on cash, and achieve higher levels of financial transparency and efficiency." It also emphasized that the electronic collection system represents a fundamental pillar in improving collection mechanisms and reducing the risks of financial corruption.
The statement concluded, "This qualitative leap comes within the framework of the ongoing efforts led by Rafidain Bank, in cooperation with government agencies, to support the digital economy, enhance confidence in electronic financial transactions, and raise the efficiency of the financial sector in Iraq."
In a shocking statement, the Iranian president said Tehran is experiencing a crisis that is no longer acceptable for living.
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Iranian President Masoud Pezeshkian revealed what he described as major problems in the administration of the capital, Tehran, warning of a "horrific shortage" of water, electricity, gas, and energy throughout the year.
During a meeting of the Tehran Province Planning and Development Council, the Iranian president said that rainfall (during the winter) was scarce, raising the possibility that the country will face a "severe water shortage" in 2026, especially since Tehran relies primarily on rainwater, snowpack, and groundwater.
He added that the current situation in Tehran is no longer livable, and that the capital cannot be supplied with water by tankers.
Iranian officials have previously reported a decline in rainfall of more than 40% compared to the long-term average, in addition to the excessive depletion of groundwater resources, which has led to a crisis of land subsidence, drought, and water shortages.
In this regard, Pezeshkian explained that some areas, such as Varamin, have experienced a 36-centimeter landslide, while emergency sessions are held when landslides reach 3 centimeters in other areas, underscoring the seriousness of the situation as the problem approaches the center of the capital. For his part, Mohammad Aghamiri, head of the Tehran City Council's Construction Committee, warned of a significant risk of landslides in eight districts of the capital, noting that some incidents have already occurred in these areas.
Previous reports indicated that the landslide crisis is affecting vital infrastructure such as airports, with an estimated 14 million people (20% of the population) at risk. Etemad newspaper also warned that 2026 will be an exceptional year for water and energy crises.
Bazeshkian emphasized that the problem cannot be resolved simply by issuing directives or arrests, but rather requires the intervention of specialists, warning that failure to be vigilant could lead to gas being cut off to homes in the winter.
Despite the budget amendments being completed a month and a half ago, there's a "possible" reason behind the delay in the schedules.
More than a month and a half has passed since the 2025 budget amendment was passed, but the 2025 schedules have yet to reach Parliament, raising questions about the reasons behind them. The initial obstacle to submitting the schedules was the delay in the budget amendment, but it appears the delay stems from the same reason related to Article 12 of the budget, which was amended but did not bear fruit.
He stressed that "there are no appointments or confirmations for specific categories in the current year's budget," noting that "the allocations will be within the previous sections, but with different numbers, so the 2025 budget will be free of appointments."
The delay in sending the schedules for approval was due to the awaited amendment to the budget law, particularly Article 12 related to the Kurdistan Region's oil. After the amendment passed in early February, it was followed by significant tension and disagreements.
Despite about a month and a half having passed since the budget amendment was passed, the schedules have not yet been sent. It appears that the delay in sending the schedules is linked to the delay in resolving the issue of resuming Kurdistan's oil exports due to the ongoing disputes between Baghdad and foreign companies in Kurdistan. The Ministry of Finance and the government are unable to confirm the final expected revenue figures due to the lack of a decision on whether or not oil will be exported from Kurdistan.
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News for TUE MAR 18 25
The government reveals 20 banks in Iraq that deal in the official dollar.
The Prime Minister's financial advisor, Mazhar Mohammed Salih, announced that 20 Iraqi banks are receiving financial support in dollars from their foreign bank correspondents at an exchange rate of 1,320 dinars.
Saleh said in a press statement, "There are 20 Iraqi banks that are processing transfers via financial support in dollars through their correspondents in foreign banks at an exchange rate of 1,320 dinars after the compliance platform disappeared."
He added, "The strength of the foreign reserves of Iraq's foreign currency investment portfolio managed by the Central Bank of Iraq, which amounts to nearly $110 billion, is diversified with gold and other currencies. It is a high-level portfolio in the history of Iraq's finances, and is managed efficiently, covering more than 15 months of imports when compared to the global standard of three months."
The Foreign Minister denies that the US asked Iraq to sever ties with Iran.
Foreign Minister Fuad Hussein revealed a proposal to form a council to manage relations with Syria. While announcing the start of sending invitations to attend the Baghdad summit this week, he indicated that a round of strategic dialogue between Iraq and the US is likely to be held this year in Washington.
In a televised interview followed by Al-Mada, the Foreign Minister said, "The primary goal of Iraqi diplomacy is to distance the country from the threat of war," indicating that "our vision regarding the events of October 7 was clear that they would lead to other wars in the region."
He added, "Our reading of the events of October 7 is that they will give birth to other wars and the end result is either bargaining or the continuation of the war," stressing that "by historic bargaining I mean the possibility of an agreement between Washington and Tehran regarding the nuclear project."
He pointed out that "the US strikes are part of the pressure to reach a historic bargain," indicating that "the attack on ships by the Houthis led to strong US reactions, and I fear the continuation of the bombing of Yemen."
He continued, "Iraq differs from the countries of the region in its relations with the United States of America," adding, "We requested a round of strategic dialogue between Iraq and the US this year in Washington."
He pointed out that "Iraq's policy is to keep the country away from the fire of war," noting that "the government has succeeded in its policy of distancing Iraq from war, but we need calm internally."
He explained that "communication is ongoing with the American side, and we need continuous work with its new administrations," noting that "America has not asked Iraq to sever its ties with Iran."
He explained that "Iraq's relations with other countries are related to Iraq's foreign policy," noting that "the issue of the factions has been raised previously, and America is not happy with them, while the Popular Mobilization Forces are legal."
He pointed out that "most political leaders believe in strengthening the state and reject any party operating outside it," stressing that "weapons outside the state are unacceptable internally and externally."
He explained that "the Zionist threats to strike Iraq were clear, and our government, constitution, and interests prevent us from making the decision to go to war," adding: "We have received messages about the Zionist entity's intention to launch a series of strikes on Iraq."
He continued, "We have held contacts with Washington and other countries and have succeeded in keeping Iraq away from the Zionist strikes," explaining that "there are threats, and due to geography, we fear the repercussions of any war against Iran."
He explained that "there is an Iraqi political consensus on not interfering in the new Syrian affair," noting that "the Iraqi experience saved Iraqi society from sectarian conflicts."
He stressed that "any persecution practiced by extremist groups in Syria will affect the countries of the region," noting that "national unity is achieved through diversity and sectarian identity."
He continued by saying: "We advised the Syrian side to preserve diversity and sectarian identity," indicating that "the five-party meeting in Amman was attended by the foreign and defense ministers of the countries participating in the fight against ISIS."
He pointed out that "during the five-party meeting, Syria emphasized its commitment to combating the extremist ideology of the terrorist ISIS," stressing that "ISIS obtained numerous weapons after the collapse of the Syrian army and poses a threat to Iraq and Syria."
He emphasized that "we need a coordination council to regulate relations between Iraq and Syria," adding, "We proposed forming a council to manage relations with Syria and discuss developments."
He pointed out that "there is a need for outlets other than the Gulf to export oil," stressing that "the international coalition is concerned with providing support to Iraq in the event of a breach of the Syrian border."
He explained that "the Syrian Foreign Ministry asked us to build relations, provide aid, and contribute to lifting sanctions," explaining that "during the Syrian Foreign Minister's visit, we presented our point of view on what is happening in Syria."
He continued: "The foreign ideological militants are takfiris and must be removed from Syria," noting that "Syria is a neighboring country and what is happening there affects Iraq positively and negatively."
Regarding the Arab summit in Baghdad, Hussein explained: "We are ready to hold the Arab summit in Baghdad," stressing that "the surrounding circumstances require holding an Arab summit, which is scheduled for Baghdad."
He stressed that "the situation in the region is extremely dangerous, and we have serious and sensitive issues that require a high level of discussion," indicating: "We will send invitations to attend the Arab summit in Baghdad this week."
What is delaying the approval of the 2025 budget schedules?
More than a month and a half have passed since the passage of the 2025 budget amendment, yet the 2025 budget tables have yet to reach Parliament. This raises questions about the reasons behind it. The initial obstacle to submitting the budget amendment tables was the delay. However, it appears that the delay stems from the same reason related to Article 12 of the budget, which was amended but did not bear fruit.
Member of the Parliamentary Finance Committee, Mustafa Al-Karaawi, said in a press statement that "the 2025 budget tables were supposed to arrive before the end of the fiscal year, according to Article 77, paragraph 2, of the Financial Administration Law, but the tables have not yet arrived, which is considered a violation of this provision."
He explained that "there is information indicating that the tables will reach Parliament at the end of this month," noting that "the delay in the tables has disrupted many of the country's economic activities, the launch of operational budgets, and the halting of projects." He
confirmed that "there are no appointments or confirmations for specific categories in the current year's budget," noting that "the allocations will be within the previous sections, but with different numbers, so the 2025 budget will be devoid of appointments."
The submission of the schedules for approval was delayed recently due to the pending amendment to the budget law, particularly Article 12 relating to the Kurdistan Region's oil. The amendment passed in early February following significant tug-of-war and disagreements.
Although about a month and a half has passed since the budget amendment was passed, the schedules have not yet been submitted. It appears that the delay in submitting the schedules is linked to the delay in resolving the issue of resuming Kurdistan's oil exports. This is due to ongoing disputes between Baghdad and foreign companies operating in Kurdistan. The Ministry of Finance and the government are unable to confirm the final projected revenue figures due to the lack of a final decision on whether or not oil will be exported from Kurdistan.
With the participation of the Minister of Finance, the meetings of the International Debt Management Conference resume in Geneva
The 14th session of the International Debt Management Conference, organized by the United Nations Conference on Trade and Development (UNCTAD), resumed in Geneva from March 17 to 19, 2025, with the participation of Finance Minister Taif Sami.
The meetings covered several important topics, most notably "Governance, Accountability, and Transparency in a World of Financial Constraints," "The Relationship between Debt and Climate: Innovative Debt Tools for Managing Financial Risks,"
"Enhancing Debt Transparency: Rethinking Reporting and Ensuring Standards," and "Strategies for Managing Institutional Challenges to Establish a Sustainable Debt Management Office."
Parliament is close to finalizing the budget and Popular Mobilization Forces laws.
Iraqi parliament member Ibtisam al-Hilali predicted on Tuesday that a vote on the federal budget agenda would take place in the coming days, once the government sends it to parliament. While denying any appointments, contracts, or wages in the budget, she pointed to information indicating that the Popular Mobilization Forces' civil service and retirement law will be returned by the prime minister's office and placed on the agenda of the upcoming parliamentary session, expected next week.
Al-Hilali explained in a press statement that "the House of Representatives voted on a three-year budget to avoid the need for an annual vote on the budget schedules, allowing ministries to continue implementing their specified budgets. However, new developments necessitated Parliament's request for an annual vote on the budget schedules."
She stressed that "the schedules are currently with the government, and they are expected to be completed and sent to Parliament in the coming days, to be voted on immediately upon arrival, to avoid any delays in the work of ministries and budget-related matters. Therefore, there are no concerns in this regard."
In a related development, Al-Hilali revealed a recent meeting with Finance Minister Taif Sami, noting that "the minister was under significant pressure due to the budget schedules, and she, in turn, confirmed that all schedules had been submitted to the prime minister." She added that Sami explained that "in the event of a budget delay, ministries and departments can continue operational and investment spending according to the 1/12 system until the schedules arrive from the government."
Regarding the inclusion of appointments or job grades in the budget, especially with the upcoming elections and the potential accompanying employment promises, Al-Hilali emphasized that "the budget that will be presented is a done deal, and the 150,000 contracts for the governorate positions may already be implemented. Therefore, we should not be fooled by election propaganda, as the 2025 budget is completely devoid of appointments, contracts, and wages."
Regarding the Popular Mobilization Forces law, Al-Hilali explained, "There is information indicating that the law withdrawn by the Prime Minister's Office last week will be returned to the Prime Minister's Office and included on the agenda of the next parliamentary session, which is expected to be held next week."
Regarding some MPs' demands to dissolve Parliament due to the ongoing disruption of its sessions, Al-Hilali stressed that "Parliament cannot dissolve itself permanently and will remain in office until January 10, 2026, the end of the current parliamentary term."
Direct implementation of the ASYCUDA system at Abu Fluos Customs in Basra
Director General of the Customs Authority, Thamer Qasim Daoud, announced today, Tuesday, the commencement of work on the ASYCUDA system at the Abu Flus Customs in Basra.
In a statement received by Al-Eqtisad News, Daoud said, "The electronic automation system (ASYCUDA) has been implemented at the Abu Flus Customs in Basra Governorate."
Iraq negotiates first gas deal with Algeria
Sources reported on Tuesday that Iraq is currently engaged in advanced negotiations to conclude a liquefied natural gas deal with Algeria, in an attempt to complete the deal before next summer.
The TAQA platform quoted these sources as saying that the deal is expected to be announced within two months at most, with exports set to begin as soon as Iraq completes the import infrastructure.
The sources explained that the contract will be medium-term, and that the quantities will be approximately one million tons annually. However, negotiations have not yet finalized the quantity.
According to the platform, an Algerian liquefied natural gas deal with Iraq could support Baghdad's electricity sector during the summer of 2025, or perhaps at the beginning of winter.
Iraq is currently preparing the infrastructure at Khor al-Zubair port in Basra Governorate to import liquefied natural gas, which could take the next three to five months.
It is planned to contract for a floating platform for unloading and storage, and connect it to a 40-kilometer pipeline that will transport the gas by connecting it to the national pipeline near the Shatt al-Basra.
In late February, the Iraqi Oil Ministry's Undersecretary for Gas Affairs, Izzat Sabir, stated that the federal government was studying the possibility of importing gas from Qatar and Algeria after the US president revoked the exemption granted to Iraq to import this material from Iran. Sabir emphasized that the ministry was determined to stop flaring associated gas by 2030.
What are the reasons for the increasing presence of Egyptian companies in Iraq?... Clarification from Al-Sudani's advisor
On Tuesday, the Prime Minister's economic advisor, Mazhar Mohammed Salih, commented on the reasons for the recent increase in the presence of Egyptian companies in Iraq, stressing that the reason is due to the economic reforms and stability the country is witnessing.
Saleh said, "The capital wealth of countries is measured by several indicators, including the extent of physical capital accumulation, particularly in the construction sector." He noted that "Egypt is a leading country in this field, with its construction companies achieving significant success in development projects within Egypt, which has prompted them to expand their activities regionally."
He added, "The services program adopted by the Sudanese government as part of comprehensive economic reforms has contributed to creating an attractive investment environment for foreign companies, encouraging Egyptian companies to enter the Iraqi market strongly and contribute to development and reconstruction projects."
The economic advisor explained that "the political and economic stability in Iraq has boosted the confidence of foreign and Arab investors, including Egyptian companies, who have found promising opportunities to contribute to the implementation of major projects." He noted that "the strong historical relations between Iraq and Egypt have played a significant role in strengthening economic cooperation between the two countries."
Saleh pointed out that "the services government, headed by Al-Sudani, has placed economic facilitation and reforms at the top of its priorities, which has contributed to creating the appropriate environment for Egyptian companies to enter the Iraqi market and participate effectively in reconstruction and development projects."
On January 30, 2025, Iraqi Prime Minister Mohammed Shia Al-Sudani and his Egyptian counterpart, Mostafa Madbouly, sponsored the signing ceremony of a number of memoranda of understanding between the two countries.
The bilateral memoranda between Iraq and Egypt included 12 paragraphs, the most prominent of which were related to trade, transportation, issues related to culture and antiquities, and other details.
Does the US bombing of Yemen carry a message to Iraq?
Kurdistan Democratic Party member Rebin Salam confirmed on Monday (March 17, 2025) that the recent US bombing of Yemen carries a message to Iraq as well.
Salam told Baghdad Today, "Previously, the bombing was carried out by Israel, but this time, during Trump's era, it is being carried out by the United States of America, and this sends a new message."
He added, "The political forces in Iraq still have a last chance, and they must seize it and address the situation before the American bombing reaches Iraq, because what happened in Yemen is a message to all forces and factions close to Iran."
He pointed out that "the Kurdish leadership conveyed its messages to the political leadership in Iraq, urging them to rectify the situation before it's too late. Unfortunately, the Kurdish messages were interpreted as a betrayal of America, while in fact, they were an attempt to keep Iraq out of the war zone."
In the same context, strategic affairs researcher Mustafa al-Taie warned on Sunday of the impact of US military operations against the Houthis on Iraq.
Al-Taie told Baghdad Today, "The US military operations against the Houthis could have negative repercussions for Iraq. This war may push Iraqi armed factions to resume their activities against US targets and interests under the banner of the unity of the resistance axis, as happened in the wars in Gaza and Lebanon."
He added, "Any military activity by these factions against the Americans will make them a prime target for the United States. Iraq will be in danger, and new American sanctions may be imposed on it, as it cannot control the weapons of these factions. This is why we are facing major and dangerous developments."
The United States launched successive airstrikes targeting various areas in Sana'a, Sa'dah, Al Bayda, and Dhamar.
The Yemeni Ministry of Health stated that the US aggression resulted in the deaths of 31 people and the injury of 101 others, most of whom were children and women, according to a preliminary toll.
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