Al-Sudani and Barzani Reach Preliminary Agreement on Kurdistan Oil Exports
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Prime Minister Mohammed Shia al-Sudani and Kurdistan Regional Government Prime Minister Masrour Barzani reached a preliminary agreement on Kurdistan oil exports.
The video for this My FX Buddies Blogpost is below here:
Kurdish media sources reported that "Al-Sudani and Barzani held a phone call during which they discussed the differences related to the region's oil exports and Kurdistan's share of domestic revenues."
The sources added that "the call resulted in a preliminary agreement between Erbil and Baghdad, attended by oil companies. A draft agreement was submitted to Al-Sudani, awaiting his approval."
They continued: "The Coordination Framework is scheduled to hold a meeting soon to discuss developments, including the issue of salaries for the region's employees."
According to the sources, "Al-Sudani is seeking the support of Shiite forces before the agreement is officially approved," adding: "At a time when the region has expressed its willingness to export 50,000 barrels per day, while committing to transferring 50% of the revenues to Baghdad."
Iraq advances in the Global ICT Index (IDI) for 2025
scoredIraq...remarkable progress in the Information and Communications Technology Development Index (IDI) for 2025, according toAnnual ReportIssued by the International Telecommunication Union (ITU), it scored 78.4 points compared to 73.9 points in 2024, a rapid pace that reflects the significant improvement in its digital readiness.
.Ministry of CommunicationsIn a statement received by Sumaria News, this achievement confirms the determination ofIraqKeeping pace with the global digital transformation, it represents a pioneering model for the region's future, taking positive steps toward strengthening its position in digital economy technologies, contributing to supporting innovation and sustainable development in the country.
The Kurdistan Regional Government discusses the salaries file and the results of negotiations with Baghdad.
Kurdistan Regional Government's Council of Ministers is scheduled to hold its regular weekly meeting today, Wednesday (July 2, 2025), headed by Prime Minister Masrour Barzani and his deputy Qubad Talabani, to discuss three main issues, most notably the salaries file and the results of recent discussions with the federal government.
According to information obtained by Baghdad Today, the meeting will be held this afternoon, with representatives from the oil companies and the negotiating delegation that held talks with Baghdad over the past few days in attendance. The meeting will provide a full briefing on the progress reached in the talks on the financial and oil issues between the two sides.
Under the second and third items on its agenda, the Council will discuss a detailed report submitted by the Ministry of Social Affairs regarding salaries and social security for workers in the region. It will also examine mechanisms for monitoring the disbursement of salaries for May and June of this year, amid widespread public anticipation for a resolution to this thorny issue.
When oil becomes a lifeline and a source of threat...the fragility of the Iraqi budget under the microscope
The challenges facing the Iraqi state in achieving a stable budget capable of confronting crises are mounting. While oil revenues remain the backbone of the general budget, specialized economic voices reveal the need to rethink the philosophy of public finance management, shifting from rent to production, from dependence to diversification, and from randomness to governance.
Revenues without production... and a budget at stake.
Speaking to Baghdad Today, economic and financial expert Nawar Al-Saadi asserted that "strengthening the state's general budget cannot be achieved by relying solely on oil revenues." He pointed out that Iraq suffers from "clear fragility in the budget structure," as more than 90% of revenues still depend on oil exports. This leaves the national economy vulnerable to sharp fluctuations in crude oil prices and exposes the country to a sudden deficit that could paralyze its ability to spend public money.
Waste Doesn't Come from the Citizen.
Al-Saadi believes that "maximizing revenues does not mean increasing taxes on citizens," but rather requires a fundamental reform of the financial and administrative system, by controlling non-oil resources that "continue to be wasted or managed outside official frameworks." He emphasizes that border crossings, taxes, fees, and real estate investments must be subject to a unified, centralized system subject to oversight, with their revenues transferred directly to the public treasury. In his opinion, "restoring trust between citizens and the state requires fair taxation and transparent allocation."
Marginalized Sectors and Forgotten Financing Instruments
Al-Saadi emphasizes that the Iraqi state possesses sectors capable of generating real resources if managed professionally, including "religious tourism, the manufacturing industry, agriculture, and logistics services." He believes that treating these sectors as an administrative burden rather than financing instruments is depriving the budget of its actual resources. He adds that reforming the tax system should not mean "persecuting the vulnerable classes," but rather "combating tax evasion, activating digital collection, and ensuring a fair tax distribution commensurate with activity and income."
Management philosophy is the foundation of transformation.
Al-Saadi concludes, "We cannot talk about a strong budget in an unproductive economy," noting that true financial stability requires a clear political will to expand state resources and transform wasted resources into clear figures within the budget. He adds that what is required today is "not merely maximizing resources numerically, but rather changing the philosophy of public financial management from rentierism to diversification, from dependence to production, and from randomness to governance." These, in his opinion, are the pillars that can put the budget on the path to sustainability and provide Iraq with a new financial horizon.
Economist: Most of the money supply is outside banks for this reason
Economic researcher Diaa Abdul Karim believes that most of the money supply is now outside banks due to citizens' loss of confidence in the Iraqi banking system.
Abdul Karim told Al-Maalouma, “There is a lack of confidence among citizens in the existing banking system, due to fears of sanctions, bank robberies, or a collapse of the political system, which would have repercussions for the banks.”
He added, "This fear is leading citizens to turn away from banks, with most of the cash stock now stored in homes. The banking system is supposed to work to withdraw this cash and transfer it to electronic and credit cards, so that spending shifts to cards instead of cash."
He explained that "the size of the monetary mass outside banks is estimated at more than 70 trillion dinars, and that the government's measures, although an attempt to withdraw the monetary mass, will not push citizens toward strengthening their confidence in the banking system."
A phone call to refresh pockets: Al-Sudani calls Barzani, and an agreement is reached to release May salaries tomorrow.
An informed source revealed, on Tuesday evening (July 1, 2025), that Prime Minister Mohammed Shia al-Sudani will hold a phone call with the Prime Minister of the Kurdistan Regional Government, Masrour Barzani, within the next few hours, with the aim of putting the final touches on a financial agreement concerning the region's employees.
According to the source who told Baghdad Today, "The anticipated contact will culminate in an official understanding stipulating the release of May salaries for the region's employees, with the payments to be made tomorrow, after the Sudanese Prime Minister signs the decision directly."
He expected that "the financing will be done in the form of advances and financial transfers," based on Article (77) of the budget tables for the years 2023-2025.
This agreement is expected to help calm the tensions between Baghdad and Erbil and restore some confidence to the region's employees, who have long been awaiting payment.
President of the Republic: I wish Trump success in achieving peace throughout the world.
President Abdel Latif Jamal Rashid expressed his wishes for US President Donald Trump's success in his efforts to achieve peace throughout the world on Wednesday.
The President of the Republic told Spanish National Radio that everyone in the Middle East is concerned about the ongoing Israeli attacks, whether against the Palestinians, Iran, Lebanon, Yemen, or many other places, adding that these crimes against the peoples of the region must stop.
He continued, "Iraq hopes that the ceasefire between the Islamic Republic of Iran and Israel will continue to become a permanent ceasefire and that no further attacks will occur there." He noted that "Israeli bombing of Gaza continues daily, resulting in dozens or even hundreds of casualties among civilians and innocent children every day."
He added that the Arab countries had set their own conditions for ending the conflict, stating that "the first priority must be to stop this aggressive war, grant the Palestinian people their right to self-determination, enable them to establish their own state and enjoy their legitimate rights, and stop these massacres."
He explained that "Iraq's relations with Iran are good," noting that "Iran is a neighboring country with which we share a border of more than 1,400 kilometers." He added that these relations are not new; they have existed for a long time, and that we have extensive contacts with the Iranian side.
He continued, "There is an urgent need to find a comprehensive solution to address the problems facing Iran, as it continues to suffer from sanctions and the isolation imposed by some countries." He emphasized that "the best course of action is to pursue dialogue and reach understandings with Iran so that it can become part of the international community."
He continued, "I wish President Trump success in his efforts to achieve peace around the world, noting that without peace, we all suffer—economically, socially, and diplomatically."
He emphasized that "ISIS was a terrorist organization, and we fought a long war against it because it controlled vast swaths of Iraqi territory. We succeeded in defeating it militarily, and the security situation in Iraq is much better today.
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He noted that ISIS remains an ideological threat, and it is the duty of the entire international community to counter these ideas. He emphasized that ISIS must not be allowed to exist or operate in any way, adding that we are cooperating closely with the Syrian government to address this problem.
Iraqi Prime Minister to BBC: Iraq will not allow its skies to become a battleground for other parties
- July 1, 2025
A different version
In an interview with BBC English, Prime Minister Mohammed Shia al-Sudani confirmed that Iraq was prepared to confront the repercussions of the recent war and succeeded through an effective diplomatic role in sparing the country from its consequences. He emphasized that Iraq's sovereignty is not subject to negotiation.
Al-Sudani explained that the violation of Iraqi airspace by the "Israeli" entity constitutes a violation of sovereignty and a breach of the UN Charter, noting that a formal complaint has been filed with the Security Council and that diplomatic action has been taken to support the Iraqi position. He revealed contracts to build an integrated air defense system, with plans to conclude additional agreements to protect Iraqi airspace.
The Prime Minister noted that Iraq has adopted balanced diplomacy to deliver warning messages about the danger of the war expanding and its impact on Iraq's security and stability, as well as its repercussions on oil exports and energy security in the region.
Al-Sudani praised the stance of the religious authority in Najaf, which warned of the dangers of the continuation of the war, stressing that the government, with the support of national forces, succeeded in protecting Iraq from slipping into conflict.
He reiterated Iraq's unwavering support for the Palestinian cause and its commitment to the resolution of war and peace through state institutions. He also noted balanced relations with Iran and the United States, and both countries' commitment to Iraq's stability.
He warned against the Netanyahu government's efforts to create new crises in the region, criticizing the media's focus on Iraq and its disregard for events in other countries in the region.
Al-Sudani revealed that the international coalition's mission in Iraq will end by September 2026, noting that Iraq is conducting talks to transition to bilateral security relations. Two rounds of dialogue have already been held with Washington, and a third is expected to formulate the relationship in accordance with the constitution and law.
On the domestic front, he emphasized the importance of elections as a democratic message, affirming the government's commitment to holding them on time and completing a national project that prioritizes citizens' interests.
He pointed to the achievements made in construction and reconstruction projects in the capital and the governorates, despite the challenges, and explained that the volume of Arab and foreign investments exceeded $88 billion over the past two years, with the private sector playing an important role in supporting the national economy.
The Iraq Stock Exchange is closed on Sunday, coinciding with the tenth of Muharram.
The Iraq Stock Exchange announced on Wednesday that it would suspend its activities for one day next Sunday, coinciding with the tenth day of Muharram.
The market stated in a statement received by Shafaq News Agency, "Based on the Cabinet's decision to declare an official holiday for one day on the occasion of the tenth of Muharram, market activities and trading sessions will be suspended for one day."
He added, "The holiday will start on Sunday, July 6, and trading sessions will resume on Monday."
It's worth noting that the Iraq Stock Exchange holds five trading sessions per week, from Sunday to Thursday, and lists 103 Iraqi joint-stock companies representing the banking, telecommunications, industry, agriculture, insurance, financial investment, tourism, hotels, and services sectors.
Sunday, July 6, 2025, is an official holiday for all ministries and government institutions, coinciding with the tenth day of Muharram, the anniversary of the killing of Imam Hussein ibn Ali, the grandson of the Prophet Muhammad and his daughter Fatima al-Zahra, according to the Iraqi official holiday calendar.
The Cabinet Affairs and Committees Department at the General Secretariat of the Cabinet clarified in a statement yesterday, Tuesday, that the holiday came based on the provisions of Article (1/First/C) of the Official Holidays Law (12 of 2024).
Shia Muslims commemorate the martyrdom of Imam Hussein, his family, and his companions in the Battle of Karbala at the hands of the army of the Umayyad Caliph Yazid ibn Muawiyah in the year 61 AH (680 AD). The commemoration continues until the Arbaeen pilgrimage, forty days after the Day of Ashura.
Baghdad-Erbil oil talks stall over federal refusal to sign written deal: Source
Negotiations between Erbil and Baghdad on resuming Kurdish oil exports have stalled, as the two sides have failed to reach consensus on a formal, written agreement, a source in Erbil familiar with the talks told Rudaw on Tuesday.
Speaking on condition of anonymity due to the sensitivity of the discussions, the source said, “The federal government has not agreed to put the agreement in writing and wants it to remain verbal.” In contrast, “The Kurdistan Regional Government [KRG] insists on a written deal.”
According to the same source, Baghdad’s reluctance stems from concerns that a formal agreement could be exploited by political rivals of Iraqi Prime Minister Mohammed Shia’ al-Sudani ahead of Iraq’s legislative elections, slated for November 11.
Rudaw learned on Tuesday that a KRG delegation, led by Acting Natural Resources Minister Kamal Mohammed, returned to Erbil earlier this week after three days of talks in Baghdad aimed at resolving long-standing oil disputes.
On Sunday, informed sources from both Erbil and Baghdad told Rudaw that the talks had been progressing in a “calmer environment,” breaking past tensions. However, one of the main sticking points remains the volume of oil that the KRG is required to deliver to Iraq’s State Oil Marketing Organization (SOMO).
While Baghdad insists the KRG must export 400,000 barrels per day (bpd), Erbil has proposed an initial volume of 280,000 bpd, the sources added.
Oil exports from the Kurdistan Region via the Iraq-Turkey pipeline have been halted since March 2023. This followed a ruling by a Paris arbitration court that found Turkey had violated a 1973 pipeline agreement by allowing Erbil to export oil independently of Baghdad’s consent.
Kurdistan Region Prime Minister Masrour Barzani stated last week that the suspension of exports has cost the Region over $25 billion in lost revenue.
In February, Iraq’s parliament amended the federal budget law to include a $16-per-barrel fee to cover production and transportation costs for international oil companies (IOCs) operating in the Region. The amendment also requires both governments to jointly appoint an international consultancy to audit and assess those costs. If they cannot agree on a firm, the Iraqi cabinet will make the selection.
These changes were intended to facilitate the resumption of Kurdish oil exports. A technical delegation from Baghdad visited Erbil last Wednesday to discuss revenue-sharing mechanisms and other unresolved issues.
Finalizing an agreement is seen as crucial to resuming payments to more than 1.2 million public sector employees in the Kurdistan Region.
In late May, Iraq’s finance ministry halted all budget transfers to the KRG, accusing the Region of exceeding its 12.67 percent share of the federal budget - a claim rejected by Kurdish political parties, who denounced the decision as unconstitutional and politically motivated.
Iraqi lawmaker: 100+ laws on shelf in Parliament
Iraq’s Parliament has stalled more than 100 draft laws, a member of the Parliamentary Legal Committee revealed on Wednesday.
Abdul Karim Abtan told Shafaq News that Parliament remains effectively paralyzed and unable to meet, predicting these bills — including the Federal Supreme Court Law, Oil and Gas legislation, the Mandatory Military Service bill, and the Civil Service framework — will likely be deferred to the next term if the stalemate continues.
Earlier, Mukhtar al-Moussawi of the Parliamentary Foreign Relations Committee blamed divisions within Iraq’s ruling State Administration Coalition for blocking other key measures, including the Federal Budget Law and the Popular Mobilization Forces (PMF) Law.
Among them are the Federal Court, Oil, and Federal Service laws. A representative reveals that 100 suspended laws will be postponed to the next session.
Parliamentary Legal Committee member Abdul Karim Abtan revealed on Wednesday that there are more than 100 stalled laws in parliament, including those related to the Federal Court, oil and gas, and the Federal Civil Service .
Abtan told local media: "There are more than 100 suspended laws placed on the shelves in the House of Representatives, the most important of which are the Federal Court, Oil and Gas, Military Service, and Federal Service .
He added that "the House of Representatives has been paralyzed by political disputes and problems and is no longer able to hold its sessions," explaining that "most of the laws on the shelves of parliamentary committees will be postponed to the next parliamentary session as a result of political disputes and the parliamentary paralysis ."
Earlier, Mukhtar al-Moussawi, a member of the parliamentary Foreign Relations Committee, revealed that disagreements between the political blocs participating in the government were behind the disruption of the parliament's work in the coming days. He noted that these disagreements had hindered voting on a number of important decisions, most notably the federal budget law and the Popular Mobilization Forces law .
An expert warns of the US Federal Reserve's restrictions on Iraq's financial autonomy
Economic expert, Diaa Mohsen, confirmed on Wednesday that Iraq still lacks independent economic decision-making due to the restrictions imposed by the US Federal Reserve on its funds, warning of the repercussions of the continuation of this situation on the country's financial autonomy.
Mohsen said in a statement to Al-Maalouma Agency, “After Iraq was released from Chapter VII in 2011, the United States deposited its funds in the US Federal Reserve under the pretext of protecting them,” noting that “the returns resulting from these deposits are much less than what could have been achieved if these funds were invested by the Iraqi government directly or through partnerships with various countries.”
He explained that "Iraq's continued exposure to these restrictions is unacceptable and deprives it of significant economic opportunities," stressing that "Iraq's liberation from the authority of the US Federal Reserve would revive the national economy and open broader horizons for financial development."
He added that "Iraq remaining hostage to US decisions makes it vulnerable to financial sanctions in the event of any political dispute with Washington, as the latter can simply seize Iraq's funds or prevent their disposal."
Kurdistan Region agrees to hand over 50% of revenues to Baghdad
Kurdistan Regional Government spokesman Peshwa Hawrami stated that the regional government has agreed to hand over 50% of federal revenues to Baghdad, noting that "the ball is now in Baghdad's court" to resolve outstanding financial disputes between the two sides.
Regarding the resumption of oil exports, Hawrami explained on Wednesday, July 2, 2025, that the Kurdistan Region has fulfilled all its obligations to the federal government, and that the main dispute between Erbil and Baghdad lies in the cost of production and transportation.
BuyMeACoffee Cashapp:$tishwash
The federal and regional governments hold their meetings without discussing employee salaries
The Kurdistan Regional Government's Council of Ministers held a meeting on Wednesday, chaired by the prime minister, without making any decisions regarding salary disbursements.
A government statement seen by Al-Masry explained that “the meeting discussed the recent talks between the regional government delegation and the federal government delegation, with the participation of representatives of oil companies, regarding the resumption of the region’s oil exports through SOMO,” adding that the meeting “also addressed the Ministry of Labor and Social Affairs’ report on unemployment and the social status of workers in the region. However, the issue of salaries was not raised at the meeting.”
The federal government's Council of Ministers also held a meeting last Tuesday without addressing the issue of sending salaries to Kurdistan Region employees, noting that Kurdistan Region employees have not received their salaries and financial dues for May and June 2025.
What happened between Al-Maliki and Al-Sudani? Very strong
He was never in the Dawa Party
In recent days, an unprecedented wave of criticism and objections has been raging between supporters of the leader of the State of Law Coalition, Nouri al-Maliki, and Prime Minister Mohammed al-Sudani. On Wednesday, Abbas al-Moussawi, Maliki’s advisor, spoke about the relationship with the current prime minister, saying that al-Sudani was never in the Dawa Party, but rather in other organizations. He expressed his belief that al-Maliki is “one in Baghdad” and that the State of Law will be the largest bloc, noting that al-Sudani only completed al-Maliki’s projects, while the idea of “sons of the interior and the exterior” was proposed by the Baath Party, in reference to al-Sudani being described as one of the sons of the interior.
He revealed details of MP Bahaa al-Din al-Nouri's expulsion from the coalition, noting that the MP's behavior had not changed and that he had not passed the coalition's test following the infamous incident with the woman who attacked the traffic police officer.
Abbas al-Moussawi, advisor to the head of the State of Law Coalition, in an interview with journalist Hani Abdul Sahib:
Mr. Baha was in a country governed by the rule of law, and when the famous incident occurred, when a woman assaulted a traffic officer, threatened him and said to him, “I will make you sit next to your sisters.” This woman had a relationship with Mr. Baha, and he was the one who went to the police station and the car was in his name.
Following the attack on security forces, a documented statement was issued by the State of Law Coalition expelling Mr. Baha' al-Nouri from the State of Law Coalition. This is documented by the media and is unambiguous.
After that, some of the brothers agreed that Mr. Baha' should attend the State of Law meetings as a test phase, to see if this person's behavior had changed or not, until it was proven that this person's behavior had not changed, so the decision to expel him and not nominate him in the State of Law was the firm decision of the State of Law.
The Al-Bashaer Youth Movement is the most active in the State of Law. It has 15 representatives and strong support. The lists will be released to the public and you will see that most of the candidates are young people. As for Al-Sudani, he was never in the Dawa Party and I stand by my words. He was in another organization called the Iraq Organization and another called the Interior Organization, but he was not in the Dawa Party. This is not an insult.
I have been in the Dawa Party since I was 17 years old and we know the party’s leaders and members. Khudair Al-Khuza’i is not currently in the Dawa Party. Dr. Khudair is a preacher who was in the Dawa Party and worked there and then left with a different ideology, but he is currently not regular. Nor is Abdul Karim Al-Anzi, nor Khaled Al-Asadi.
The idea of generational displacement that some are proposing is immoral. It is not ethical to tell an experienced adult that you are old and should go and stay home! Rather, we should benefit from the experience of these adults. Look at how Americans still rely on the expertise of Brzezinski and other thinkers, as well as on their writings, statements, and performances.
Maliki is "one in Baghdad" in the upcoming elections, and the State of Law Coalition will be the "largest bloc." Prime Minister Mohammed Shia al-Sudani's projects are a continuation of Maliki's projects.
There is a project to fragment Baghdad's votes, through small Shiite lists, and the idea of "sons of the interior and the exterior" was proposed by the Baath.
The Association of Private Banks to Nina: Iraq has made significant progress in promoting financial inclusion...and these are the requirements for the success of international standards.
The Iraqi Private Banks Association confirmed: "Iraq has achieved significant progress in financial inclusion thanks to the Central Bank's commitment to implementing international standards."
The head of the association, Wadih Al-Handhal, said in a statement to the National Iraqi News Agency ( NINA ), that "the Central Bank of Iraq is moving forward in implementing compliance standards and enhancing financial inclusion in the banking sector, and the Banks Association also supports raising awareness of financial inclusion."
He explained that "the success of the basic requirements for implementing these standards and achieving advanced levels in combating money laundering depend on training specialized and qualified staff to use information and databases, based on the principle of knowing the customer and the sources of his funds."
He added: "The Middle East and North Africa Financial Action Task Force (MENAFATF) has transformed Iraq from a gray zone to a monitoring area, and this is true evidence that Iraq has achieved significant progress in enhancing financial inclusion and combating money laundering and terrorist financing," noting that "the need for legal legislation still exists, and we must move forward in training human cadres to keep pace with the rapid digital and technological transformation in the world."
Regarding the financial inclusion rates achieved by Iraq, Al-Handhal explained that, “according to international standards, the current financial inclusion rate in Iraq has exceeded 46% compared to previous years, which is a very significant progress with which we seek to achieve a rate of 90-95% in cooperation with the Central Bank in the near future. The Arab Monetary Fund is also very satisfied with this rate and is following the growth of the banking sector. It considers Iraq to be implementing financial inclusion through a sound mechanism that has contributed to Iraq’s progress in ranking ahead of other countries.”
The US Treasury is pursuing corruption funds... and the Baghdad government remains silent.
An Imminent Crisis in the Iraqi Financial Sector: Has the Phase of Comprehensive Sanctions Begun?
Iraq's financial system is facing new signs of turmoil after the disruption of salary payments through some electronic payment companies affiliated with government institutions. While the reasons for the disruption appear technical, informed sources confirm that the matter is linked to US investigations targeting Iraqi banks and companies suspected of involvement in money laundering operations abroad, to countries including Turkey, Iran, and the UAE.
The same sources explained that the US Treasury had granted a grace period to a number of private banks and electronic payment companies to rectify their status and comply with international standards for combating money laundering and terrorist financing, including the Financial Action Task Force (FATF) and Know Your Customer (KYC) requirements. However, many of these entities have not demonstrated sufficient seriousness in resolving their cases, opening the door to the inclusion of new names on US sanctions lists in the near future.
This situation threatens to directly disrupt the financial market's performance, especially if the sanctions affect active institutions relied upon to pay salaries and finance daily commercial activities. Experts expect liquidity within the market to be significantly affected, amid growing concerns about declining public confidence in local banks. This is particularly true with the increased demand for dollars for external transfers or for storage in anticipation of any unexpected developments. This pressure could lead to a decline in the value of the Iraqi dinar and a rise in the dollar on the parallel market, which would impact the prices of goods and services in an already tense economic environment.
Meanwhile, regulatory authorities within Iraq , led by the Central Bank, are preparing to impose stricter oversight on the activities of banks and money transfer companies in an attempt to avoid further escalation. This is particularly true since some technical reports have revealed clear violations in the performance of some banking institutions, including massive financial transfers abroad without legal documentation, the issuance of credit cards to fictitious accounts, and suspicions of financing prohibited activities or smuggling hard currency.
Despite the bleak outlook, observers believe the crisis could mark a turning point in Iraq's financial reform process. It has become imperative to restructure the private banking sector and impose strict regulatory classifications, along with a comprehensive review of electronic payment companies to ensure their compliance with international standards, and to open the door to broader partnerships with globally licensed financial service providers.
In this context, the crisis may turn into an opportunity to reshape the financial market in Iraq, starting with cleansing the banking environment of unregulated entities and bolstering international institutions' confidence in the Iraqi transfer and oversight system. The shift toward a more transparent and governed environment is not a luxury, but rather a necessity imposed by both domestic realities and international pressures.
Iraq today stands at a critical crossroads: either integrate into the global financial system on its terms and ensure gradual stability in its banking sector, or continue sliding toward financial isolation, which will have direct repercussions for the lives of citizens and the country's economy as a whole.
US State Department to Al-Jabal: Suspending Kurdistan's oil exports harms our companies and strengthens Iran's influence
On Wednesday, July 2, 2025, the US State Department called for the immediate resumption of Kurdistan Region oil exports via the Iraq-Turkey pipeline, noting that the suspension of exports has affected three American companies and "strengthened Iranian influence."
"There is a need to immediately resume Kurdistan Region oil exports via the Iraq-Turkey pipeline," State Department spokeswoman Tammy Bruce told the Al-Jabal platform, stressing that "the closure has harmed three American companies, which is unacceptable."
Bruce added, "It is critical that the Iraqi government, the Kurdistan Regional Government, and other stakeholders work urgently to resume operations on the Iraq-Turkey oil pipeline. The operations of three American companies have been directly impacted by the shutdown."
The US State Department spokeswoman noted that "the pipeline closure not only hindered Iraqi economic growth and weakened the interests of American companies, but also contributed to Iran's increasing hegemony in the region," adding, "This issue must be resolved as quickly as possible."
Bruce concluded her statement by "emphasizing that the pipeline provides an important alternative route for oil to global markets, benefiting the economies of Iraq and the Kurdistan Region, as well as American companies operating there," noting that "opening this pipeline is in the interests of the United States, the Kurdistan Region, Iraq, and the entire region."
The Coordination Framework, which brings together Iraq's ruling Shiite political forces, intends to hold a meeting soon to "resolve" its position on the Kurdistan Region's oil exports. Meanwhile, an informed source revealed on Wednesday, July 2, 2025, details of a phone call between federal Prime Minister Mohammed Shia al-Sudani and Kurdistan Regional Government Prime Minister Masrour Barzani regarding outstanding issues between Baghdad and Erbil and the ongoing understandings.
Ali al-Fatlawi, a leader in the Coordination Framework, told the Al-Jabal platform, "The leaders of the Coordination Framework will hold an important meeting, attended by the Iraqi Prime Minister, in the next few hours to discuss the proposal to resume the export of Kurdistan Region oil within the next few days. This meeting will be decisive and important regarding this issue that has been stalled for a very long time."
Al-Fatlawi explained that "the Coordination Framework supports the re-export of Kurdistan Region's oil, and they have no intention of continuing the export suspension, but according to conditions that will be discussed and agreed upon during the upcoming meeting. Whatever the leaders of the framework agree upon will certainly be in coordination and understanding with the government, as Al-Sudani will be present at the meeting with proposals and ideas in this regard that are open to discussion, dialogue, and agreement."
For his part, an informed source in the federal government confirmed that the Coordination Framework is preparing to hold a meeting attended by Iraqi Prime Minister Mohammed Shia al-Sudani to discuss the outstanding issues between Baghdad and Erbil, most notably the oil file.
The source told Al-Jabal platform that "the meeting will discuss the outcomes reached by the Baghdad and Erbil teams following the recent negotiations regarding Kurdistan Region salaries."
The KRG's negotiating delegation returned to Erbil last night after intensive rounds of talks in Baghdad.
The source confirmed that "a phone call took place yesterday between Iraqi Prime Minister Mohammed Shia al-Sudani and Kurdistan Regional Government Prime Minister Masrour Barzani, and there was a good understanding regarding the outstanding issues."
He pointed out that "Al-Sudani will provide a full briefing during the upcoming Coordination Framework meeting regarding the agreements reached regarding salaries and Kurdistan Region oil."
The Kurdistan Regional Government and the federal government have reached a preliminary agreement on the issues of oil and employee salaries.
Al-Jabal learned from a high-ranking Iraqi government source that "the preliminary agreement includes promising points, and that talks between Baghdad officials and the regional delegation witnessed a significant convergence of views on the issues of oil and salaries. The two delegations are expected to meet again to follow up on the details."
A preliminary agreement was reached on local revenues, with the Kurdistan Regional Government agreeing to hand over 50% of its local revenues to the Iraqi government on a monthly basis, according to a government source.
Regarding the resumption of oil exports, "there are still some minor points of contention related to specific details. Part of these points relate to the quantity of oil barrels allocated for domestic consumption in Kurdistan, as the regional government wants to allocate a large amount to avoid impacting fuel and gasoline prices," according to the source.
In contrast, Kurdistan Regional Government Prime Minister Masrour Barzani insists on reaching an agreement with Baghdad in accordance with the constitution, ensuring the resumption of oil exports from the region as soon as possible. According to information received by Al-Jabal, "the Iraqi government has confirmed that it will begin sending salaries as soon as these outstanding issues are resolved, unless any further developments emerge."
Kurdistan Regional Government spokesman Peshwa Hawrami stated that the KRG has agreed to hand over 50% of federal revenues to Baghdad, noting that "the ball is now in Baghdad's court to resolve the outstanding financial disputes between the two sides."
Regarding the resumption of oil exports, Hawrami explained in an interview with the "Al-Jibal" platform on Wednesday that "the Kurdistan Region has fulfilled all its obligations to the federal government, and that the main dispute between Erbil and Baghdad lies in the cost of production and transportation."
Hawrami explained in his interview with Al-Jabal that “the resumption of oil exports from the Kurdistan Region was set as a condition for sending employees’ salaries, and that “the Prime Minister of the Regional Government, as a statement of good faith with the start of negotiations without reaching an agreement, expressed his willingness to export 50,000 barrels of oil per day and to continue gradually until reaching the quantity exported previously,” noting that “the federal government expressed its approval to begin exporting, regardless of the quantity.”
He said, "The problem is an ongoing dispute between the oil-producing companies in the region and the federal government over the price of a barrel extracted from the region. A meeting was held between the two sides to discuss a formula that both parties can agree on, along with some technical issues." He added, "The federal government informed the regional delegation that an agreement had been reached with the oil companies, while the companies said they were close to reaching an agreement. The formula that the companies reached with the government was submitted to the prime minister, and they said that salaries would be sent after the agreement was signed."
"The agreement must be signed between the oil companies operating in the region and the federal government first, and then salaries must be sent to employees," Hawrami said.
Hawrami emphasized that "the Kurdistan Region is ready and has no problem sending the agreed-upon amount of oil for export and delivering 50% of federal revenues to Baghdad. We have fulfilled all our commitments in this regard, and the ball is now in the Baghdad government's court."
He added, "There is a third party in the recent talks and a warm atmosphere prevails."
The Kurdistan Regional Government spokesperson addressed a message to the Iraqi Prime Minister, the leaders of the Coordination Framework, and decision-makers in Baghdad through the mountains, saying: "This is not the Iraq we agreed upon, created, and built. This is not the Iraq of partnership, consensus, and brotherhood, and the Iraq of commitment to the constitution. No people should be starved for any reason. The constitution requires the payment of salaries, and the court and parliament recognize this. Therefore, this policy is not in the interest of the partnership and consensus upon which Iraq was founded, and it will be of no benefit in the future. Destroying the situation in the Kurdistan Region, which is the goal of some parties, will undoubtedly have an impact on the destruction of the situation in the rest of Iraq."
He continued, "The Kurdistan Regional Government has opened all its doors regarding internal revenues, oil, customs, and all the files that have been pending since the first day of salary cuts. We have resolved them all and are ready for other solutions, but not in this way, by starving our children and disturbing the peace of our employees and teachers, and the Peshmerga - the force that defeated ISIS for you - are now being starved by you. So let us adhere to the principles of partnership and consensus and the provisions of the constitution upon which Iraq was established and make them the basis for resolving our problems. Procrastinating on these problems will not serve Iraq's situation and stability. The Kurdistan Regional Government will not wait long for its people, employees, and its forces to remain in this difficult and disturbing situation. We did not want the situation to worsen, and we did not want to reach a stage where there would be no solution left. However, we hope that the file in their hands will be signed this evening and that the feelings of the people of Kurdistan will not be manipulated anymore."
Barty: Kurdistan's salary crisis is on its way to being resolved, but Baghdad's politics are hindering confidence.
A member of the Kurdistan Democratic Party's (KDP) Political Bureau, Pshtiwan Sadiq, confirmed on Wednesday (July 2, 2025) that the problem of salaries for employees in the Kurdistan Region will be resolved within the next few days. He indicated that the efforts made by the Prime Minister of the Kurdistan Region, Masrour Barzani, are moving towards ending the crisis, and held the federal government in Baghdad responsible for what he described as a systematic policy of "starvation" against the people of Kurdistan.
Sadiq said in a clarification posted on his official Facebook page, followed by Baghdad Today, that "salaries represent a legitimate right for the people of Kurdistan," adding that "what the federal government is doing resembles, in terms of intentions and mentality, the old policies practiced against the Kurds during dark periods of history, such as the Anfal operations."
He added that "the current injustice being perpetrated against the Kurds by the federal government constitutes a real obstacle to any long-term solutions," noting that "political leaders are resorting to only temporary solutions to mitigate popular pressure, at a time when these policies lack sustainability and undermine trust between the two sides."
Sadiq stressed that "continuing this approach will prevent Iraq from convincing itself that a stable, developed, and secure Kurdistan is a vital element in the stability and security of federal Iraq," adding that "the lack of this conviction creates an unhealthy relationship between Baghdad and Erbil."
Barzani: Employees owe us a debt.
The Politburo member indicated that a solution to the salary crisis is imminent, stressing that "the regional government considers itself responsible for securing employees' salaries. Prime Minister Masrour Barzani has repeatedly expressed this position, saying, 'Employees have a duty on our shoulders, and we owe it to them.'"
The salary crisis: Between tension and promises.
For a long time, the issue of salaries for employees in the Kurdistan Region has witnessed escalating tension between the governments in Baghdad and Erbil, amid repeated delays in the release of financial allocations from the federal government and mutual accusations related to financial transparency and oil revenues.
The issue is considered one of the most prominent indicators of the dysfunction in the relationship between the central government and the region. It is frequently used as a political pressure card, amid ongoing demands to transfer the region's share of the federal budget without complex conditions, and to respect its administrative and financial privacy.
Workshop calls for reviving public-private partnerships
An economic workshop called for reviving public-private partnerships to ensure benefits for all stakeholders. Participants emphasized that one of the most prominent advantages of this partnership is the integration of public and private funds according to clear controls, enabling significant benefits and development goals that enhance Iraq's economic capabilities.
The workshop, organized by the Iraqi Contractors Union in cooperation with the Ministry of Trade, focused on leveraging global experiences that have witnessed partnerships that have achieved clear economic feasibility and transformed the economy to a more advanced stage.
Secretary General of the Iraqi Contractors Union, Zuhair Boutros, confirmed to Al-Sabah that “the workshop is concerned with an important topic that addresses the partnership between the public and private sectors and the challenges facing this matter, which has achieved positive results around the world, especially since it brought together the poles of partnership in the two sectors to discuss the foundations of cooperation and the challenges facing such a project that is improving the reality of the Iraqi economy.” He pointed out that adopting the company’s approach works to change the reality of performance within the production and service sectors, especially when it is in accordance with controls that take reality into account.
wheel of the economy
Boutros noted that the workshop addressed all the details needed to achieve a true partnership for sustainable national development in Iraq, emphasizing that revitalizing the Iraqi economy is now possible given the availability of the necessary elements for cooperation between government and private institutions.
Development goals
For his part, Wathiq Hamid, a representative from the Ministry of Commerce, said: "The move toward partnership represents a necessary option at this stage, as it allows the private sector to contribute effectively to managing the work processes and achieving development goals, leveraging its expertise in management and increasing performance efficiency."
He added that the private sector is constantly striving to improve performance and increase profit margins, which reflects the project's success and economic feasibility. He emphasized the importance of the government working to overcome the obstacles facing this sector and provide an enabling environment for activating partnerships.
Successful management
Wathiq said that adopting this approach to work and partnership aims to enable the private sector to successfully manage the work joints, achieve goals and improve performance. He pointed out that the private sector seeks to develop businesses that increase the profit margin in the project, and this means successful performance. At the same time, he indicated the importance of the government moving towards addressing the problems of the private sector, making it more effective and facilitating the tasks of partnership in a way that achieves benefit for both the public and private sectors.
Hamid emphasized that partnership represents a solution to the problems facing the Iraqi economy in most of its aspects, as sustainable development can be achieved through a broad-based partnership between the two sectors. He noted that the budget cannot cover the requirements of investment expenditures in Iraq, which necessitates a shift towards partnership.
The Ministry of Commerce representative also stressed the importance of having sectors that support the partnership, starting with the banking sector, which is the most important axis in achieving any economic development locally and internationally. He also stressed the need for an effective communications sector that operates with advanced technologies. He also stressed the need for an ideal and rapid transportation sector without any challenges, in addition to the presence of an insurance sector that operates according to international standards and provides highly serious insurance services to various projects without exception.
Hamieh stressed the importance of the government developing infrastructure that reduces costs, in order to encourage partnerships and make them a real support for the country in achieving its development goals.
Al-Sudani and Barzani Reach Preliminary Agreement on Kurdistan Oil Exports
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Prime Minister Mohammed Shia al-Sudani and Kurdistan Regional Government Prime Minister Masrour Barzani reached a preliminary agreement on Kurdistan oil exports.
Kurdish media sources reported that "Al-Sudani and Barzani held a phone call during which they discussed the differences related to the region's oil exports and Kurdistan's share of domestic revenues."
The sources added that "the call resulted in a preliminary agreement between Erbil and Baghdad, attended by oil companies. A draft agreement was submitted to Al-Sudani, awaiting his approval."
They continued: "The Coordination Framework is scheduled to hold a meeting soon to discuss developments, including the issue of salaries for the region's employees."
According to the sources, "Al-Sudani is seeking the support of Shiite forces before the agreement is officially approved," adding: "At a time when the region has expressed its willingness to export 50,000 barrels per day, while committing to transferring 50% of the revenues to Baghdad."
Iraqi Oil Minister Meets Russian Energy Delegation
Iraq's Minister of Oil, Hayan Abdul Ghani, held talks in Baghdad on Wednesday with Russian Ambassador Elbrus Kutrashev and a delegation from Russian energy giant Lukoil.
The meeting focused on strengthening cooperation between Iraq and Russia in the oil, gas, and energy sectors.
Also in attendance were Bassem Mohammed Khudair, Undersecretary for Extraction Affairs, and Bassem Tahir, Director General of the Petroleum Contracts and Licensing Directorate (PCLD) at the Ministry of Oil.
EQIQ Invests in Iraqi-US Banker's Digital Banking Venture
UAE-based venture capital fund EQIQ has announced a $3-million anchor investment in a new digital banking startup led by Iraqi-American finance veteran Hussain Qaragholi (pictured).
The total $15-million funding round will support the launch and early growth of the next-generation, AI-driven platform.
The new venture aims to transform Iraq's underdeveloped banking sector by providing scalable, customer-focused digital services. Iraq, the MENA region's fourth-largest economy, remains significantly underserved in digital finance.
Qaragholi, founder of Phoenix Finance Partners, has held senior roles at Merrill Lynch, Citigroup, and Deutsche Bank. He played a major role in Iraq's $22-billion debt restructuring and sovereign bond offerings, and currently serves on RAND Corporation's Global and Emerging Risks Board.
Mohamed Al-Hakim, Founding Partner at EQIQ, said:
"Hussain's deep global financial expertise, combined with his strong connection to Iraq's economic landscape, positions him uniquely to lead Iraq into a new era of digital banking ... This isn't just about launching a bank- it's about laying the digital foundation for Iraq's future economy."
Hussain Qaragholi added:
"This is Iraq's leapfrog moment ... With EQIQ's backing, we are building more than a bank; we are building the rails for digital finance across Iraq and beyond."
Expert warns: Iraq's finances are under "American pressure"... and the guardianship ended in 2022.
Economic expert Ahmed Abdel Rabbo called on the Iraqi government to review the international legal framework for depositing Iraq’s funds in the US Federal Reserve, stressing that continuing to work under Security Council Resolution No. 1483 issued in 2003 is no longer justified after the reasons for which the “Development Fund for Iraq” was established have ended.
In a statement to “Jarida Platform,” Abdul Rabbo said , “In 2021, Iraq paid the full $52.4 billion in compensation for the invasion of Kuwait, and in 2022, the Security Council approved Resolution 2621, which officially ended the international claims file and closed the United Nations Compensation Commission, which removes the main legal cover for keeping Iraq’s funds under direct American supervision.”
He added, "Despite this development, the United States continues to exert economic pressure by restricting dollar transfers from Iraq's account in New York, causing disruptions in the foreign exchange market and unstable increases in the dollar's exchange rate against the dinar."
Abdul Rabbo stressed the need for the Iraqi government to "take the initiative to request a review of Security Council Resolution 1483 and work to diversify foreign reserves, as countries that rely on a currency basket are less vulnerable to the risks of dollar fluctuations." He called for "the formation of a currency basket comprising no less than 20% of the total reserves, which exceed $100 billion."
He pointed to the importance of "establishing a sovereign wealth fund to invest oil surpluses under independent and transparent management, similar to Norway's experience, to achieve sustainability for future generations and reduce the need to hold cash abroad." He explained that "developing the local financial system, accelerating digital transformation, strengthening the role of private banks, and activating financial hedging tools are urgent priorities."
At the end of his remarks, Abdul Rabbo emphasized that "achieving Iraq's economic sovereignty requires unity in political and diplomatic decision-making, and clear parliamentary support for the government in any international financial negotiations, particularly with the Security Council and the International Monetary Fund," noting that "Iraq is not a poor country, but a rich one."
Trump launches two new fragrances with scents that reflect victory and success.
Trump stated that the two fragrances embody "the scent of victory, strength, and success," sending symbolic messages to his supporters as the upcoming US presidential election approaches.
The two fragrances were launched as part of a broad promotional campaign across his media platforms and are expected to generate significant sales, especially among his supporters, who view Trump as a symbol of confidence and leadership.
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