An endless crisis: Why hasn't the oil and gas law been released from the drawers for 20 years?
For more than a decade, the energy sector in the Kurdistan Region has been a silent arena for an unresolved economic and political struggle. Despite the growing need for oil and gas within Iraq, what energy experts describe as a "systematic obstruction" of any attempt to develop the region's production infrastructure continues.
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Energy expert and head of the Sustainable Energy Organization, Mohammed Amin Hawramani, confirms to "Baghdad Today" that internal parties in Baghdad have been "obstructing any expansion in the oil and gas sector in Kurdistan for years," whether by opposing the development of fields or limiting the work of foreign companies, despite the region's direct reliance on these sources to secure its needs for energy and oil derivatives.
Horamani points out that the Kurdistan Region, in accordance with its constitutional right, enacted an oil and gas law within its regional parliament, before the Federal Constitutional Court struck it down "in the absence of a federal oil and gas law that should have been passed nearly two decades ago." The constitution clearly stipulates the necessity of enacting a federal law to regulate the management of oil wealth, but accumulated political disputes have left the issue unresolved for more than twenty years, creating a legislative vacuum with far-reaching economic consequences for both Baghdad and Erbil.
With the region's oil exports halted for over two years due to a complaint from the Iraqi Ministry of Oil, losses mounted before exports resumed later under a tripartite agreement between Baghdad, the region, and foreign companies. However, according to Horamani, the delay was not technical; rather, it reflected, in his view, "a genuine reluctance on the part of some to allow the region to manage its own production or exports," even though all sales are conducted through SOMO (State Oil Marketing Organization).
He adds that international and American pressure was a decisive factor in pushing Baghdad to accept the resumption of pumping, especially with the decline in global oil prices during the past three years to below the price adopted in the budget law ($70 per barrel), which made the federal government more dependent on the region’s revenues to finance the salaries item.
The expert points out that Iraq is "practically obligated to continue exporting via the Turkish Ceyhan pipeline," not only to secure revenues, but also to maintain a sensitive oil-water exchange equation with Ankara, which makes the energy route part of a broader network of regional interests.
For nearly twenty years, the federal oil and gas law remained inoperative despite being included in the constitution, leading to an unstable regulatory environment that affected long-term investments, disrupted domestic gas development plans, and kept the relationship between Baghdad and Erbil hostage to temporary understandings that changed with the change of governments.
Even today, the absence of this legislation remains one of the biggest factors hindering the building of a cohesive energy market within Iraq, and delaying the transition towards more efficient management of oil wealth, both in the region and in the rest of the provinces.
Al-Rasheed Bank responds to Mustafa Sand's statement regarding bankruptcy
On Thursday, December 4, 2025, Al-Rasheed Bank responded to statements made by Iraqi Member of Parliament Mustafa Sand regarding "bankruptcy," confirming that its work continues "normally."
The bank said in a statement, a copy of which was received by Al-Jabal, that "work is continuing normally in all branches of the bank, with a commitment to disbursing entitlements and fulfilling withdrawal and deposit requests without any obstacles."
He added that "the bank is keen to fulfill its obligations as it is one of the long-established government banks," stressing "the management's keenness to enhance confidence and ensure the smooth flow of banking services."
Iraqi parliament member Mustafa Sand recently made a statement declaring the “bankruptcy of Al-Rasheed Bank,” as well as other banks, due to the government’s economic policies.
The collapse of the Iranian currency: a crisis that shakes markets and confounds Kurdistan's traders.
The Iranian rial has been experiencing a sharp decline for days, the most severe in years, in a rapid downward wave that has cast a shadow over the markets of Iraqi Kurdistan, especially the banking sector, which relies heavily on the movement of the toman in daily buying and selling.
According to a Shafaq News Agency correspondent in Sulaymaniyah, the price of 100 US dollars reached about 12 million and 150 thousand Iranian Tomans, an unprecedented level that prompted many traders to recalculate their accounts.
Kawa Yahya, a currency trader in Sulaymaniyah, told Shafaq News that the recent decline was unexpected, stressing that demand for the dollar inside Iran rose exceptionally following the escalation of tensions between Tehran and both the United States and Israel, which put direct pressure on the local currency.
Yahya points out that what is happening today cannot be explained by economic standards alone, and in his opinion, "the political factor is the main driver of the current decline," expressing surprise that a country with such broad local self-sufficiency as that achieved in Iran cannot prevent this decline in its currency.
He adds that many currency traders in the Kurdistan Region have suffered significant losses as a result of the rapid decline, especially those who had been holding large quantities of Toman during the past period.
In the context of a broader economic analysis, economist Ismail Mohammed reveals to Shafaq News Agency that the current crisis has complex roots, starting from the outside and not ending at the inside.
The expert confirms that the deterioration of relations between Iran and the United States and European countries has put the local currency under direct political pressure, saying that "any disturbance between a country and America or Europe is quickly reflected in the value of its currency, and the Iranian rial is no exception."
But at the same time, he points to the existence of concurrent internal reasons, represented by a package of economic decisions that the Iranian government is preparing to implement at the beginning of next year, most notably raising fuel prices and increasing the prices of a number of local goods in exchange for government plans to raise employee salaries, which are measures that he believes will double the pressure on the currency and open the door to a new wave of inflation.
The agency's correspondent reports that the currency exchange markets in Sulaymaniyah, Halabja and Garmian have witnessed a clear state of confusion over the past two days, as a number of traders have reduced their transactions in Toman while waiting for the market to stabilize, while others reported a decline in demand from customers who usually relied on the Iranian currency for daily transfers or for purchasing goods coming from the Iranian side.
This decline comes in the context of a long downward trend witnessed by the Iranian currency during 2025. According to a quick tracking, the year began with a price of approximately 4.8 million tomans per 100 dollars, then it rose to about 7.5 million tomans in the middle of the year following a new round of US sanctions. With the fall, and with the increase in regional tensions, the price exceeded 10 million tomans, reaching 11.15 million tomans in December, which is the lowest level in more than ten years.
Analysts agree that continued political tension and the absence of radical economic solutions could push the currency down further in the coming weeks unless Tehran intervenes with effective steps to curb the decline.
Economic: The shift towards an electronic payment system provides the state with financial liquidity.
Economic researcher Diaa Abdul Karim found that shifting government transactions to an electronic system for paying fees and collecting taxes would provide the state with significant liquidity.
Abdul Karim told Al-Maalouma, “Iraq is still in the early stages of transitioning to electronic payment systems, while European countries and even neighboring countries have preceded Iraq by many years in this transition.”
He added, "There is a lack of acceptance of the electronic system, as the public is not accustomed to such systems, despite their considerable benefits. These include protecting citizens from financial theft and ensuring ease of purchase without the burden of carrying and protecting cash."
He explained that "the primary goal of transitioning to an electronic payment system and generalizing this experience across various government departments is to guarantee the availability of cash for the state, in addition to ensuring that it does not bear additional burdens related to printing currency. Therefore, it is a good experiment, provided that it is properly educated about and accepted in Iraq."
The Baghdad dollar faces a new shock; Al-Sudani's oversight with Hezbollah embarrasses the Central Bank in front of Trump.
Ziad Al-Hashemi hopes that this is not the case.
Economic expert Ziad al-Hashemi paints a picture fraught with questions and anxieties surrounding the dollar's situation in Baghdad. This follows what was described as a "mistake" by Prime Minister Mohammed Shia al-Sudani's government regarding sanctions on Hezbollah and the Houthis, and subsequent statements aimed at lifting those sanctions. This has been characterized as a rare and unprecedented governmental confusion in official and legal documents, leading to significant protests in Baghdad and Basra. The situation has escalated to the point where many within the Shia community have "disavowed" al-Sudani, questioning how he could err in dealing with "Nasrallah and Abdul-Malik al-Houthi." However, al-Hashemi questions the future and how US law views what transpired in Iraq. Baghdad signed the agreement based on US criteria, then revoked it based on other considerations, amidst escalating tensions surrounding the formation of a new government and uncertainty about al-Sudani's continued presence or departure from the political scene. This uncertainty also raises questions about the potential impact on Iraq's exchange rate, which is already burdened by unprecedented levels of domestic debt.
(The Iraqi Central Bank is in trouble) and a potential crisis with the US Treasury, due to political pressures within Iraq to cancel the decision to sanction regional armed groups with close ties to the ruling system in Baghdad!
The sanctions decision, published in the Iraqi Official Gazette, was issued by a committee headed by the Central Bank Governor and his deputy, and concerns freezing and seizing financial assets belonging to internationally sanctioned groups!
The Iraqi decision was in line with the sanctions issued by the Office of Foreign Assets Control (OFAC) of the US Treasury Department against countries, entities and individuals accused by the US of money laundering and supporting terrorism!
The Central Bank of Iraq is facing a very difficult and critical situation. On one hand, there are Iraqi political pressures and firm internal demands to cancel the decision to punish those entities, and on the other hand, there are American financial sanctions on those entities, and the Central Bank has no option but to comply with the American sanctions!
The cancellation of the financial sanctions decision on armed groups by the relevant committee may indeed happen in response to internal pressures, but it will put the Central Bank in direct confrontation with the US Treasury!
This could undermine the Central Bank's efforts over the past period to improve compliance and eliminate the consequences of money laundering and smuggling, and push things back to square one!
This will bring back accusations against the Iraqi financial and banking system for supporting terrorism and facilitating the work of sanctioned entities, and things may end with new sanctions, but this time on Iraqi parties!
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The electronic payment system: a digital transformation that threatens citizens' trust.
The electronic payment system is facing a critical test today, after technical errors and shortages of funds when withdrawing became a source of concern for employees and retirees.
The electronic payment system in Iraq, particularly salary withdrawal outlets and smart cards, is witnessing a widespread wave of criticism and public discontent, as a result of a series of repeated technical and financial errors, amid questions about whether it is a technical issue or fraudulent operations that fall under the category of corruption.
These errors are now directly affecting employees, retirees, and all beneficiaries of this service. Instead of the electronic system being a means to facilitate the lives of citizens and reduce traditional paper queues, it has become a growing source of concern after repeated instances of salary cuts and shortages of deposited amounts during withdrawals.
In recent months, citizens have repeatedly complained about discrepancies in their withdrawals, as the balance appears in the system at one amount, but upon actual withdrawal, the citizen receives a smaller amount. This creates a clear imbalance in trust in the system. Despite assurances from government agencies that these errors are limited and being addressed, their almost daily recurrence at various outlets has led citizens to question the state's ability to impose a stable electronic system based on solid infrastructure.
Greed of outlet owners
The problem is not limited to electronic errors, but is exacerbated by the greed of outlet owners who impose illegal additional commissions, even though the Central Bank issued a clear circular stating that the commission is determined electronically and no additional amounts may be imposed. Nevertheless, many citizens are forced to accept this deduction to avoid long queues or to search for a less crowded outlet, a practice that has become a burden on low-income classes, especially retirees.
Economic experts believe that “the continuation of these phenomena will undermine public confidence in the state’s move towards digital transformation, a goal that is supposed to provide speed, accuracy and security in financial transactions, not turn into a new source of suffering.”
In the same context, economist Ahmed Al-Waili stressed that “the electronic system cannot succeed unless it is accompanied by a comprehensive upgrade of the infrastructure, increased monitoring of the ports, and ensuring that companies and operators adhere to technical and financial standards.”
He explained that “the lack of effective oversight has allowed some outlets to take advantage of the chaos and impose additional fees that burden citizens.”
human potential
He then added, “Iraq has the human and financial capabilities that enable it to move to an advanced electronic financial system, but the problem lies in the fragmentation of the responsible authorities and the weak coordination between government institutions and operating companies, in addition to hasty decisions to implement systems that are not yet fully ready.”
He also pointed out that “real reform begins with developing digital infrastructure, enhancing financial security, and imposing strict penalties on violating outlets.”
On the other hand, citizens express their surprise at the government’s insistence on generalizing the electronic system in all state departments, even though the current experience is still immature. The citizen who faces difficulty in withdrawing his salary today finds it even more difficult to accept any new step towards more digitization, which leads to a growing gap between the government and society, amid questions about the readiness of the infrastructure in Iraq for this transformation, especially with the many malfunctions, weak internet, and the multiplicity of operating companies without unifying fixed standards.
financial greed
Observers believe that “trust is the cornerstone of any electronic financial system, and it cannot be built while errors continue and the financial greed of some outlets is not punished. However, the opportunity remains for the government to rearrange the file by tightening control, updating systems, and opening effective and responsive complaint channels.”
Between the government’s ambition for digital transformation and the citizen’s daily suffering in queues at electronic outlets, the most important question is whether the government can reform this system in a way that restores the citizen’s confidence , or will the issue remain one of the most prominent indicators of the backwardness of the infrastructure and the weakness of the administration?
The President is impressed by Trump's commitment: Conflicts must be resolved through dialogue, not violence.
US President Donald Trump affirmed to his Iraqi counterpart Abdul Latif Jamal Rashid on Thursday his determination to end centuries of conflict in the Middle East .
The Presidency of the Republic stated in a statement received by "Mail" that "President Abdul Latif Jamal Rashid received, today, Thursday, at Baghdad Palace, the Chargé d'Affaires of the Embassy of the United States of America to Iraq, Joshua Harris, who offered him condolences and sympathy on the death of his brother, the late Shamal Jamal Rashid ."
The statement added that "the meeting discussed bilateral relations between the two countries and ways to develop joint cooperation in various fields in a way that serves the interests of the two friendly peoples. Developments in the regional and international situation were also reviewed, with emphasis on the importance of joint coordination to confront existing challenges, in a way that contributes to ensuring stability and security in the region ."
The President of the Republic expressed his "thanks and appreciation for the message sent to him by US President Donald Trump on November 21, 2025, which included gratitude for supporting the campaign to promote peace in troubled regions around the world ."
According to the statement, Trump asked Rashid to "continue his support to help ensure a brighter future for our citizens and the world ."
In the letter, Trump affirmed his "determination to end centuries of conflict in the Middle East," expressing his "hope that the international community will move beyond the long-standing conflicts of the past in order to save lives, in every region, and on every continent ."
Rashid welcomed “President Trump’s commitment, which is in line with his belief that all conflicts can, and indeed must, be resolved through dialogue rather than violence, and his support for all efforts aimed at achieving stability, cooperation and lasting peace, while emphasizing joint action for a more secure and harmonious global future,” according to the statement.
Trump Reaffirms Commitment to Middle East Peace in Letter to Iraqi President
President Rashid expressed appreciation for Trump’s letter, dated November 21, which praised Iraq’s efforts to support peace initiatives in conflict-affected areas around the world.
US President Donald Trump has reiterated his commitment to resolving long-standing conflicts in the Middle East, according to a letter delivered to Iraqi President Abdul Latif Rashid and disclosed on Thursday.
The Iraqi Presidency said in a statement that President Rashid received US Embassy Chargé d’Affaires Joshua Harris in Baghdad, who conveyed condolences on the passing of the President’s brother, Shamal Jamal Rashid.
During the meeting, both sides discussed bilateral relations and ways to strengthen cooperation across various sectors in order to serve the shared interests of Iraq and the United States. They also reviewed regional and international developments and underlined the importance of continued coordination to address current challenges and promote stability and security.
President Rashid expressed appreciation for Trump’s letter, dated November 21, which praised Iraq’s efforts to support peace initiatives in conflict-affected areas around the world.
In his message, President Trump emphasized his administration’s commitment to ending “centuries of conflict” in the Middle East and voiced hope that the international community would overcome longstanding divisions to protect lives across all regions.
According to the Presidency, President Rashid welcomed Trump’s position, noting that it aligns with his own conviction that disputes must be resolved through dialogue rather than violence. He reaffirmed Iraq’s support for efforts aimed at achieving stability, cooperation, and lasting peace, stressing the importance of collective action for a more secure and harmonious global future.
Al-Rasheed Bank responds to Mustafa Sand's statement regarding bankruptcy
On Thursday, December 4, 2025, Al-Rasheed Bank responded to statements made by Iraqi Member of Parliament Mustafa Sand regarding "bankruptcy," confirming that its work continues "normally."
The bank said in a statement, a copy of which was received by Al-Jabal, that "work is continuing normally in all branches of the bank, with a commitment to disbursing entitlements and fulfilling withdrawal and deposit requests without any obstacles."
He added that "the bank is keen to fulfill its obligations as it is one of the long-established government banks," stressing "the management's keenness to enhance confidence and ensure the smooth flow of banking services."
Iraqi parliament member Mustafa Sand recently made a statement declaring the “bankruptcy of Al-Rasheed Bank,” as well as other banks, due to the government’s economic policies.
Sudanese: For the first time since the founding of the state, we have a maritime view through the navigation channel.
Prime Minister Mohammed Shia al-Sudani praised the Faw port and the development road on Thursday, stressing that it is the "dream" for the transition to a real economy, while pointing out that Iraq, for the first time, has a maritime view of the Gulf through the navigation channel.
The Prime Minister's Media Office stated in a statement received by "Mail" that "Prime Minister Mohammed Shia Al-Sudani attended the Iraqi British Business Council (IBBC) conference held in Basra Governorate under the slogan (Gateway to Iraq)."
The office explained that "the conference includes sessions and panel discussions with the participation of high-level officials from Iraq and the United Kingdom and leading companies, and aims to enhance trade and economic relations between the two countries and facilitate communication between companies and stakeholders, as well as explore opportunities for cooperation and investment in various fields, including energy, finance, climate and education."
Al-Sudani stressed that “(Iraq Gateway) is not a slogan for a conference, but rather a title for a stage in which we aspire for Basra and the rest of the governorates to be actual gateways for investment, trade and mutual opportunities,” noting that “the success of this vision depends on the ability of the government, the private sector and international partners to turn the dialogue into programs, and then into projects that work to improve the lives of citizens.”
He added, “The conference slogan (Iraq’s Gateway) expresses the government’s vision of Basra’s role as a key economic outlet and a center for services, energy, and logistics. We have worked on parallel tracks to improve the business environment, modernize infrastructure, reform the energy sector, and empower the private sector to be a key partner in development.” He pointed out that “our government has adopted a balanced policy and invested in Iraq’s location to be a bridge between East and West, and part of a broader vision for stability and development in the region.”
Al-Sudani stated that “Iraq’s strength lies in its oil and gas resources, as well as the Faw port, the development route, and its location as a corridor linking the Gulf, Asia, and Europe,” emphasizing “the development of business practices and finance, and our government has simplified administrative procedures, moved towards digitalization, and reduced complexities.”
He added, "Work is underway with Iraqi banks and international partners to develop financing tools that serve strategic, medium, and small productive projects," welcoming "technical and investment cooperation with experienced companies, including British companies and companies that are members of the Iraqi-British Business Council, and we emphasize the need to develop the logistics, ports, docks, and maritime transport sector as it represents an important economic resource."
The Prime Minister pointed out that “we have achieved optimal use of oil and gas resources, and Iraq was losing (8-9) billion dollars annually due to importing oil derivatives and flaring gas. During the 3 years of the government’s term, we have developed a clear vision to solve the problems related to oil and gas investment,” indicating that “the Faw port and the development road is the (dream) project to transform into a real economy and create a new Iraq.”
He pointed out that "for the first time since the establishment of the Iraqi state, we have a maritime view of the Gulf through the navigation channel, which is 20 meters deep and 23 kilometers long, and we look forward to partnership, training and funding initiatives that link female entrepreneurs in Iraq with their counterparts in the United Kingdom," explaining that "the platforms provided by the Iraqi-British Business Council help in implementing energy, infrastructure, services, education and training projects."
Iraq achieves a historic leap in the speed of international trade through the TIR system
he International Road Transport Union (IRU) confirmed in a report on Friday that Iraq has become a strategic and rapid transit hub for international trade, having shortened the time it takes to transport large shipments from Europe to the region from weeks to just a few days.
The report, which Kalima News reviewed, stated that "the successful transfer of film equipment from Hungary to Jordan via the Iraqi international road in just six days, after it used to take five weeks, is evidence of a major transformation."
The report noted that "this achievement highlights Iraq's growing role as a vital link connecting Europe with the Gulf and Middle Eastern countries, especially with the expansion of the use of the international (TIR) customs system, which speeds up procedures and reduces stops at borders."
The report noted that “the digital expansion of the system and the activation of transit routes through Iraq will enhance the country’s position on the global trade map, and will encourage the private sector to adopt the Iraqi route because of the time and cost savings it provides.”
It is worth noting that the Ministry of Transport had previously announced the implementation of successful trips within the (TIR) system, as more than 1,000 land transport operations were recorded on the Dohuk-Umm Qasr line since last June, reflecting a remarkable growth in commercial transport across Iraqi lands.
Washington pushes: A balanced government or economic isolation
Baghdad is witnessing increasing anticipation as the arrival of US Special Envoy Mark Savaya approaches. He is expected to hold intensive meetings with various political forces to convey Washington's clear messages regarding the shape of the next government after the recent elections.
This move comes in a context seen as the beginning of a new phase of US-Iranian competition for influence within Iraq, as the United States seeks to ensure the formation of a government that respects regional balances and limits foreign interference.
On the other hand, American circles confirm that Washington does not object to the formation of a government controlled by Iran’s allies if that is the will of the Iraqis, but in return it will refrain from providing any political or economic support to such a government, which puts Baghdad before two options: either a balanced government that attracts international partnerships, or facing possible isolation.
In a related development, US Deputy Secretary of State for Resource Management Michael Regas arrived in Baghdad on an official visit aimed at strengthening the partnership between the two countries and supporting joint efforts to promote sovereignty, stability and prosperity, as reported by the US Embassy in a post on the X platform, where he was received by the Chargé d'Affaires Joshua Harris.
It is also noted that Savaya himself, in a previous post a few days ago, described Iraq as standing at a crucial crossroads, either moving towards independent institutions capable of enforcing the law and attracting investments, or returning to the spiral of complications that have burdened everyone, warning against the continued interference of politics with unofficial forces.
This intensive US diplomatic activity reflects Washington’s concern about the growing influence of the factions, especially with their increased representation in the new parliament, making the government formation process a real test of Baghdad’s commitment to limiting weapons to the state.
"Baghdad Today" publishes Trump's Middle East strategy 2026... an official document
The “National Security Strategy 2026” document revealed a notable change in the shape of the American approach to the Middle East, with President Donald Trump’s administration moving towards reducing direct involvement and focusing on redistributing burdens among regional allies.
The document , according to a review by Baghdad Today, indicates that the United States no longer considers the Middle East a top priority in its foreign policy, having reduced its dependence on the region's oil and become a net energy exporter. It asserts that the Middle East is "no longer the constant source of trouble or the source of imminent disaster" it was in previous decades.
According to the document, the new strategy focuses on containing Iran as “the most destabilizing force in the region,” noting that its nuclear capabilities have declined as a result of the operation carried out by Washington in mid-2025, along with the ongoing Israeli strikes since October 2023.
The strategy also speaks of supporting the stability of Syria with joint American-Arab-Turkish-Israeli support, noting that the Arab-Israeli conflict has witnessed “tangible progress” after the hostage exchange deal and ceasefire negotiated by Washington.
The document highlights American interest in maintaining energy security, including keeping the Strait of Hormuz open, ensuring that the region does not become a breeding ground for terrorism, and supporting the expansion of the Abraham Accords to include additional countries in the Middle East and the Islamic world.
The document states that the era of “long wars to build nations” is over, and that Washington will adopt an approach based on economic partnership and expansion in areas such as nuclear energy, artificial intelligence, and defense industries, in cooperation with the Gulf states and regional partners.
The strategy concludes that the United States will not abandon the Middle East, but will deal with it through a mechanism of “reducing direct military engagement” in exchange for strengthening economic and security alliances, and exerting pressure to prevent any threat to its interests or the security of Israel.
To view the full strategy,
https://www.whitehouse.gov/wp-
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