The Sudanese government directs the follow-up on the disbursement of contractors' dues.
Prime Minister Mohammed Shia al-Sudani directed the relevant authorities to follow up on the disbursement of contractors' financial dues, indicating that the government is continuing its efforts to confront the major challenges it is facing. The country.
A statement from the Prime Minister's Media Office, received by Al-Sabah newspaper, indicated that "Al-Sudani met yesterday, Monday, with the head of the Iraqi Contractors Union, Ali Al-Sanafi, and affirmed during the meeting that the last three years have witnessed significant reconstruction efforts, as the government has made improving services a priority in its executive program, and based on this, the government has implemented hundreds of service and infrastructure projects in Baghdad and all other Iraqi governorates and districts." And its surrounding areas.
The statement explained that Al-Sudani praised the vital role of Iraqi contractors in implementing these projects, which contributed to improving public services. He directed the relevant authorities to follow up on the disbursement of the contractors' financial dues, stressing that the government is continuing its efforts to confront the major challenges facing the country as a result of the war's repercussions and its impact on the region. And the world.
Prime Minister Sudani warns war poses risk of ‘serious consequences’ for Iraq
Iraqi Prime Minister Mohammed Shia al-Sudani warned Saturday that the regional war has expanded and now threatens Iraq’s infrastructure, energy supplies and supply chains, while insisting that decisions on war and peace rest solely with the state.
“The war has expanded and all parties are now facing an imminent danger,” Sudani said during a meeting with Shia and Sunni religious figures, adding that Iraq faces “major challenges” his government is working to address.
“The state, through its institutions, is the authority concerned with the decision of war,” he said. Iran-aligned armed groups, some of which are formally incorporated into Iraq’s security forces, have already entered the conflict, launching drone and rocket attacks on targets across federal Iraq, the Kurdistan Region and elsewhere in the region.
Sudani condemned attacks on diplomatic missions and coalition forces headquarters in Iraq, warning they expose the country to “serious consequences.” The U.S. Embassy compound in Baghdad’s Green Zone was struck early Saturday, with thick smoke seen rising from the compound. The UAE Consulate General in Erbil was hit the same day, the second attack on it in a week, wounding two security guards.
“The state, through its constitutional institutions, will continue pursuing those involved in this condemned and rejected act,” he said.
He also condemned strikes on PMF members within Iraq’s security forces. “We will not accept our service members being exposed to such threats and we will do everything within our power to protect them,” Sudani said — hours after warplanes struck several PMF positions in Tuz Khurmatu district, wounding four fighters, two seriously.
Neither the United States nor Israel has claimed responsibility for strikes on PMF positions in Iraq. The PMF said Thursday that 32 airstrikes have hit its positions across seven governorates since the war began Feb. 28.
Iran-aligned factions under the Islamic Resistance in Iraq umbrella, including Kataib Hezbollah, Asaib Ahl al-Haq, Kataib Imam Ali and Harakat al-Nujaba, have claimed responsibility for numerous drone and rocket attacks on alleged U.S.-linked targets since the war began.
Trump: We can end the war with Iran this week
US President Donald Trump asserted on Monday that the war with Iran could be resolved this week, indicating that a nuclear war would have erupted had military operations not commenced.
In a speech, Trump stated, "The Iranian leadership is vicious and has killed 32,000 protesters. The Iranians are violent, and if they possessed a nuclear weapon, they would have used it."
He added, "If I hadn't withdrawn from the most foolish nuclear agreement, Iran would have acquired a nuclear weapon and would have blown up the Middle East and bombed us." He continued, "I don't want wars, and my principle is peace based on strength."
Trump emphasized, "Iran should not possess a nuclear weapon, and we have taken this military action against them." He added, "If we hadn't initiated military operations against Iran, a nuclear war would have broken out and escalated into World War III."
He further stated, "We have inflicted significant damage on Iran in just two weeks, and what we have accomplished is for the benefit of the world." He concluded, "We can certainly resolve the war this week."
China says it is "in contact" with the United States regarding Trump's visit.
Beijing announced on Monday that it is holding talks with Washington regarding a visit that US President Donald Trump is scheduled to make to Beijing at the end of this month.
Trump hinted that Washington might postpone the planned summit with Chinese President Xi Jinping if Beijing does not help reopen the Strait of Hormuz.
Iran effectively closed this vital waterway for oil and gas transport in response to the US-Israeli war against Tehran.
The Chinese Foreign Ministry stated on Monday that Beijing and Washington are "in constant communication regarding President Trump's visit to China."
"The diplomacy of heads of state plays an indispensable strategic and guiding role in China-US relations," said Foreign Ministry spokesman Lin Jian during a press conference.
He did not address the recent pressure exerted by the US president on Beijing and NATO allies to help reopen the Strait of Hormuz.
When asked about Trump's remarks, Lin said that the "tense situation" in the strait "has disrupted international trade routes for goods and energy."
Global oil prices have risen by between 40 and 50 percent since the start of the war, as a result of the closure of the waterway and Iran's attacks on energy and shipping targets in neighboring Gulf states.
China is a major importer of oil resources and one of the major Asian economies that relies on the strait as a source of energy.
According to the analytics firm Kpler, the Middle East accounted for 57 percent of China’s direct imports of seaborne crude oil in 2025.
Washington had announced that Trump would visit China from March 31 to April 2, but Beijing has not yet confirmed these dates, as is its custom with such matters.
Trump asks China to postpone his visit for a month
US President Donald Trump announced that he had asked China to postpone his official visit "for about a month," after it was originally scheduled to run from March 31 to April 2.
Trump told reporters in the Oval Office, "I want to be here because of the war" in the Middle East, adding, "We asked to postpone the visit for about a month." He affirmed that the relationship with Beijing is "very good."
Preparations for this visit began months ago and include a meeting between Trump and his Chinese counterpart Xi Jinping, which could lead to defusing the trade war between the two giants.
But the war in the Middle East, which is entering its eighteenth day, is disrupting the agenda as much as it is disrupting the relationship between the two powers.
Donald Trump, who presents the joint US-Israeli war as a guarantee of the future security of the entire world, said that China, a major consumer of Iranian oil, "should thank us" for launching the attack.
The US president is putting pressure on his country's allies, as well as on China, to contribute to securing maritime traffic in the Strait of Hormuz after Iran almost completely disrupted it.
In an interview with the Financial Times on Sunday, he linked the postponement of his visit to China's response to his request for assistance.
- Iranian oil -
More than half of China's seaborne crude oil imports come from the Middle East and mostly pass through the Strait of Hormuz. More than 80% of Iran's oil exports were destined for China before the war, according to the specialist firm Kpler.
US Treasury Secretary Scott Bisent had indicated the possibility of postponing the visit on Monday, confirming to CNBC that it would be for "logistical" reasons and not to put pressure on Beijing.
For his part, Chinese Foreign Ministry spokesman Lin Jian said, "China and the United States remain in constant communication regarding President Trump's visit."
The spokesman declined to comment on potential Chinese assistance in fully reopening the strait.
China had expressed anger over the US and Israeli strikes on Iran, but also criticized Iranian strikes on Gulf states.
Lin Jian reiterated on Monday China's call for "all parties to immediately cease military operations".
Experts believe that the world's second-largest economy is better equipped than others to face the crisis thanks to its oil reserves.
But China has reason to be concerned about the impact of the situation in the Middle East on trade. Its economic indicators for the first two months of 2026 underscore the importance of international trade to it.
- "Protectionist tendencies" -
Donald Trump's visit to China is presented as an important opportunity to dispel the tensions that marked 2025 after the Republican billionaire's return to the White House.
Last year saw a bitter battle over tariffs and various restrictions, until a truce was declared in October following a meeting between Xi and Trump in South Korea.
Senior economic officials from the United States and China met in Paris for talks over the weekend.
China's chief trade negotiator, Li Zhengang, said it was "deep" and frank.
The US Treasury Secretary confirmed that the discussions "were constructive and indicative of a stable relationship."
But earlier, China’s Ministry of Commerce protested against the US trade investigations that were announced shortly before the talks.
These investigations target China, along with dozens of other countries. According to the US administration, they aim to investigate potential shortcomings in combating forced labor. These investigations could lead to the imposition of new tariffs.
China's Ministry of Commerce described the investigations as "one-sided, arbitrary, highly discriminatory, and a prime example of protectionism."
Agreement to postpone government formation: "cautious waiting" and a temporary government until the war ends
link
Well-informed political sources revealed on Tuesday (March 17, 2026) that there is what they described as a "near agreement" among major political forces to postpone the completion of procedures for forming the new Iraqi government until the course and repercussions of the ongoing military conflict between Iran, the United States, and Israel become clear, amid growing fears of the repercussions of regional escalation on the Iraqi interior.
Sources told Baghdad Today that “unannounced consultations took place during the past few days between the leaders of prominent political blocs, which concluded that it is necessary to adopt a policy of cautious waiting, in order to avoid forming a government that may face complex security and economic challenges in the event of an expansion of the scope of military confrontation in the region.”
She explained that “a number of political parties believe that the current stage requires a transitional government with limited powers or a continuation of temporary caretaker government until the regional scene stabilizes, especially with the possibility of Iraq being directly affected by military developments due to its geographical location and the entanglement of its political and economic interests with the parties to the conflict.”
The sources added that "internal disputes have not been fully resolved yet, but the regional factor has become an additional pressure that has prompted some forces to reassess their political priorities and focus on maintaining security stability and avoiding political division during the period of tension."
While the region is ablaze with cross-border conflicts and escalating regional tensions, the Iraqi scene seems to be moving at a different pace, governed less by the results of the war than by deep internal disputes that extend from the Coordination Framework to the Kurdish forces, hindering the identification of both the Prime Minister and the President of the Republic. With no real signs of resolution, fears are growing that the political waiting will become a permanent state, making the formation of the next government a task postponed indefinitely. Political sources confirm that there is no specific timeframe for forming the next government, indicating that the disputes between the Coordination Framework and the Kurdish forces remain unresolved, while emphasizing that the delay in forming the government is related to internal problems and not to the results of the ongoing war in the region.
For security reasons, British Petroleum (BP) is withdrawing its staff from Kirkuk oil projects.
Sources in the Iraqi state-owned North Oil Company revealed on Monday that the British company BP had withdrawn a number of its foreign employees working on oil field development projects in Kirkuk, due to security tensions and the repercussions of the war in the region.
Sources told Shafaq News Agency that the company informed the Ministry of Oil and the North Oil Company of its decision to withdraw foreign employees working within the technical and advisory support teams in oil field development projects, explaining that the step came as a precautionary measure to protect its staff in light of recent security developments.
She added that the decision does not mean canceling or terminating the contract concluded between the two parties, but rather represents a temporary measure until the security situation is assessed, noting that some field work may be partially affected due to the absence of foreign technical teams that supervise specialized aspects of the development operations.
The sources indicated that the cooperation between the North Oil Company and BP (British Petroleum) aims to implement an integrated program to develop a number of oil fields in Kirkuk Governorate, raise production rates and improve the infrastructure of the production and transportation system, thereby enhancing the technical efficiency of the old fields, which are among the most prominent oil fields in Iraq.
She explained that the current production of the North Oil Company is about 325,000 barrels per day from the fields located within its administration in Kirkuk and the surrounding areas, while development plans aim to gradually increase these quantities during the coming years by improving the management of oil reservoirs and developing the infrastructure of the fields.
The Kirkuk fields are among the oldest and largest oil fields in Iraq, containing major reservoirs including the Kirkuk, Bai Hassan, Jambur and Khabbaz fields. In recent years, they have faced technical and security challenges that have affected production levels, prompting the Ministry of Oil to seek the assistance of international companies to rehabilitate them and increase their production capacity.
In this context, oil expert Ali Khalil told Shafaq News Agency that the cooperation agreement with BP represents one of the important projects within the Kirkuk fields development plan, noting that the British company has extensive technical experience in managing giant fields and enhancing production.
He added that the agreement falls within the framework of technical and advisory cooperation contracts aimed at reassessing oil reservoirs and developing advanced plans to increase production and improve the management of oil reservoirs, using modern technologies to improve oil extraction and address accumulated technical problems in the fields.
Khalil pointed out that the withdrawal of foreign employees at the moment does not mean the project will stop completely, but it may lead to a slowdown in some technical work that requires direct supervision from the foreign company’s experts, especially with regard to advanced geological studies and reservoir development programs.
He explained that international companies usually take precautionary measures in cases of security tension or escalating risks in work areas to protect their employees and reduce operational risks, stressing that such decisions are often temporary until the situation stabilizes.
He stressed that continued cooperation between the Iraqi Ministry of Oil and international companies is an important factor in developing the country’s energy sector, noting that the Kirkuk oil fields need significant investments and advanced technologies to rehabilitate them and make the most of their oil reserves.
He pointed out that any delay in implementing development programs could affect plans to increase production in the near term, but he stressed at the same time that Iraq has technical personnel capable of continuing to work in the fields until the foreign teams return and full technical cooperation is resumed.
The Ministry of Oil seeks to increase the production capacity of the northern fields as part of its strategic plans to boost oil production and increase exports, given the great economic importance of the Kirkuk fields to the country’s energy sector.
Iran's Revolutionary Guard issues urgent warning to US industries in the region
The Revolutionary Guard's public relations office said in a statement, "The United States must evacuate all American industries in the region, and residents of areas surrounding industrial plants in which American companies have shares must leave those areas so that they are not harmed."
She added, "These facilities will be attacked and targeted in the coming hours."
Iran warns US over attacks on Kharg Island oil facilities
Iran’s army has warned Washington against launching another attack on Kharg Island, a key hub for the country’s oil exports, after recent US strikes on military facilities there.
Army spokesperson Brigadier General Abolfazl Shekarchi issued the warning as tensions between Tehran and Washington continue to escalate.
“US officials and military repeat that they want to attack Kharg Island,” he said, according to Iran’s Tasnim news agency.
He added: “We warn that if the criminal US commits aggression and attacks Kharg Island, its facilities, and its oil terminal, we will decisively turn all the oil and gas facilities of the country of origin of the aggression into ashes.”
US President Donald Trump has recently threatened further strikes on the island.
Maliki's coalition: The oil dispute between Baghdad and Erbil threatens the livelihoods of citizens.
He called for prioritizing the national interest and avoiding escalation.
On Monday, the State of Law Coalition, led by Nouri al-Maliki, expressed its deep concern over the differences in positions between the Federal Ministry of Oil and the Ministry of Natural Resources in the Kurdistan Region, warning that the repercussions of this dispute will directly affect the livelihoods of citizens in light of the sensitive economic conditions the country is going through.
The coalition called on all concerned parties to prioritize the national interest and avoid escalation, stressing that the accumulated disputes between Baghdad and Erbil over the years have contributed to complicating the situation at a time that requires the highest degree of national responsibility, and emphasizing that economic security and the stability of citizens’ conditions must remain above any other considerations.
In the name of God, the most gracious, the most merciful
We have followed with great concern and interest the statements issued by the Federal Ministry of Oil and the Ministry of Natural Resources in the Kurdistan Region, and the accompanying differences in positions in light of the sensitive economic conditions the country is going through, and the repercussions that may result from this, which will directly affect the lives and livelihoods of citizens.
The accumulation of disputes between the federal government and the Kurdistan Regional Government over many years has contributed to complicating the situation, at a time when the current circumstances require the highest levels of national responsibility and prioritizing the public interest.
Given this exceptional circumstance, we call on all concerned parties to deal with the issues raised in a spirit of national responsibility, to avoid escalation or deepening of differences, and to work together to overcome the current crisis in a way that preserves economic stability and protects the interests of citizens.
We also emphasize that the contentious issues between the federal government and the Kurdistan Region should be addressed in a national spirit based on dialogue, cooperation and understanding, in a way that achieves the public interest and enhances political and economic stability in the country.
Iraq’s economic security and the stability of its citizens’ conditions must remain above all other considerations, which requires everyone to be wise and work together to overcome this sensitive stage in a way that serves the interest of Iraq and its people.
European Union: Keeping the Strait of Hormuz open is an urgent priority
The European Union affirmed on Monday that keeping the Strait of Hormuz open is a pressing priority, noting its focus on de-escalating tensions with Iran and protecting freedom of navigation.
EU foreign policy chief Kaja Kallas stated that EU foreign ministers confirmed that keeping the Strait of Hormuz open is a top priority, but they did not support expanding the mandate of the EU's maritime mission, ESPEDIS, to include the strait. She emphasized that the EU is focused on de-escalation and protecting freedom of navigation.
Kallas added that "following the Foreign Affairs Council meeting in Brussels on Monday, ministers discussed strengthening ESPEDIS in the Red Sea by increasing naval assets, but there was 'no appetite' among member states to amend its mandate at this time to extend northward towards the Strait of Hormuz."
Around 200 U.S. Troops Wounded Across Middle East Since Start of War with Iran: CENTCOM
Captain Tim Hawkins, spokesperson for United States Central Command (CENTCOM), said the injuries occurred in several countries across the region, including Bahrain, Iraq, Israel, Jordan, Kuwait, Saudi Arabia, and the United Arab Emirates.
Around 200 U.S. military personnel have been wounded in seven countries across the Middle East since the start of the U.S.-Israel war against Iran, a U.S. military spokesperson said on Monday.
Captain Tim Hawkins, spokesperson for United States Central Command (CENTCOM), said the injuries occurred in several countries across the region, including Bahrain, Iraq, Israel, Jordan, Kuwait, Saudi Arabia, and the United Arab Emirates.
“The vast majority of these injuries have been minor, and more than 180 troops have already returned to duty,” Hawkins said, noting that “10 are categorized as seriously wounded.”
The United States Department of Defense had previously reported around 140 wounded troops as of March 10. In addition, 13 U.S. service members have been killed since the conflict began—seven in attacks and six in a plane crash in Iraq.
U.S. and Israeli forces launched a large-scale air campaign against Iran on February 28. In response, Tehran has carried out waves of missile and drone strikes targeting countries across the region that host U.S. troops or military bases.
Iraqi pro-Iran group says senior official killed
Iraq’s pro-Iran Kata’ib Hezbollah said Monday that its spokesperson and senior security official, Abu Ali al-Askari, was killed. This comes following an attack reportedly on one of its positions in Baghdad on Saturday.
“We announce to you the martyrdom of Hajj Abu Ali al-Askari,” Kata’ib Hezbollah said in a statement by leader Ahmad al-Hamidawi, known as Abu Hussein, published by Sabreen News, a channel affiliated with Iranian-backed factions of the Popular Mobilization Forces (PMF).
The statement added that “the banner” Askari carried “will be raised” by the head of Hezbollah’s security, Abu Mujahid al-Asaf.
The announcement follows explosions heard in Baghdad early Saturday after airstrikes targeted a house in the city, which, according to Rudaw’s information, was used as the headquarters of a PMF leader. Security sources said a member of the PMF was killed in the attack.
AFP cited a security source at the time saying that “a key figure was martyred” in the strike on the house used by Kata’ib Hezbollah. Neither the PMF nor Iraqi authorities immediately released the identities of the victims, though some officials and lawmakers affiliated with the PMF posted verses from the Quran on social media referencing death.
Kata’ib Hezbollah is designated as a terrorist organization by Washington.
Last week, Askari had said that the killing of Iranian Supreme Leader Ayatollah Ali Khamenei during Israeli strikes at the onset of the war with Iran had made undermining the security of US assets and expelling them from the region a top priority for Iran-aligned Iraqi armed groups.
In late February, the group called on its fighters to prepare for what it described as a potential “war attrition that may be long-term, exceeding the estimates of the US administration.”
At the start of the war, several airstrikes targeted a PMF base in Babil province used by Kata’ib Hezbollah.
Another hotel in Baghdad closes its doors... The heart of the world apologizes to its guests.
The venue for the Arab Summit
The Heart of the World Hotel in Baghdad announces the temporary suspension of guest receptions until further notice following the bombing of the Al-Rasheed Hotel in the Green Zone.
The “Heart of the World” hotel, where the Arab Summit was held in Baghdad, has apologized for not being able to receive guests at the present time and until further notice, after the Al-Rasheed Hotel in the Green Zone was targeted.
In a statement received by 964 Network, the hotel management said, “Given the current situation in the region, the Heart of the World Hotel announces its apologies for not being able to receive guests at the present time and until further notice. We wish everyone safety and pray that God protects Iraq and its people with His watchful eye. Our final prayer is that all praise belongs to God, Lord of the Worlds.”
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Pakistan-bound oil tanker passes through Hormuz Strait amid Iran war
Ship-tracking data shows a Pakistan-bound oil tanker passing through the Strait of Hormuz over the weekend, indicating that some countries are able to negotiate safe passage for their vessels despite the U.S.-Israeli war on Iran.
Since the war began more than two weeks ago, Iran has attacked several ships in the Gulf, in effect closing the strait, conduit for a fifth of the world's crude oil and liquefied natural gas, and driving up global energy prices. [O/R]
Iran has, however, let some vessels through. Treasury Secretary Scott Bessent said on Monday that the U.S. believed some Indian and Chinese as well as Iranian fuel tankers had passed through the strait.
The Kpler data provider MarineTraffic said the Karachi was "the first non-Iranian cargo to transit the chokepoint while broadcasting its AIS signal, suggesting that select shipments may be receiving negotiated safe passage" in a post on X.
PAKISTAN WALKS DIPLOMATIC TIGHTROPE AMID IRAN WAR
The Aframax tanker Karachi, operated by Pakistan National Shipping Corporation, transited the strait around March 15 after loading crude at Das Island in Abu Dhabi, and is expected to arrive at Karachi on March 17, according to LSEG vessel-tracking data.
The data shows the vessel sailing along the Iranian side of the strait before turning east toward Pakistan.
Pakistan relies heavily on imported crude and refined fuels from Gulf producers, most of which come through the Strait of Hormuz.
It has good ties with Iran while also maintaining close relations with Washington and Saudi Arabia, with which it has a mutual defence pact, leaving Islamabad walking a diplomatic tightrope as tensions escalate.
Iranian Foreign Minister Seyed Abbas Araghchi thanked Pakistan for its "solidarity" in a post on X on Monday.
Pakistan's navy last week launched an operation to safeguard shipping lanes, including escorting merchant vessels.
A military source told Reuters the navy had contacted Iranian counterparts. "No escort was needed, being Pakistani vessels," the source added.
Pakistan's navy and military, as well as the foreign, petroleum and information ministries, did not immediately respond to requests for comment.
Another PNSC tanker, the Lahore, which loaded crude at Saudi Arabia's Red Sea port of Yanbu, was about three vessel days from Pakistan, LSEG vessel data showed.
The finance ministry on Monday said Pakistan held "comfortable" petroleum stocks, with supply secured for March and cargo coverage into mid-April. It also said Pakistan was diversifying its fuel imports.
US allows Iranian oil tankers through Strait of Hormuz to maintain global supply: Treasury secretary
The US is allowing Iranian oil tankers to transit the Strait of Hormuz in order to maintain global oil supplies, Treasury Secretary Scott Bessent said Monday, Anadolu reports.
“The Iranian ships have been getting out already, and we’ve let that happen to supply the rest of the world,” Bessent told CNBC, adding that tankers supplying India had already made the crossing and that some Chinese vessels were also believed to be getting through.
Bessent said the administration expected tanker traffic through the strait to increase further before the US Navy and allied forces begin escorting commercial ships through the waterway.
The Strait of Hormuz has been effectively closed to regular commercial shipping since early March amid Iranian retaliatory strikes as US-Israeli strikes continue.
Around 20 million barrels of oil pass through the waterway daily, and disruptions have pushed global oil prices up, raising concerns about energy supplies and food prices.
Four months after the Iraqi elections: The war may lead to an extension of al-Sudani's term.
More than four months after the Iraqi parliamentary elections, Baghdad remains mired in a profound political deadlock. The winning parties have been unable to form a new government, and the internal situation is further complicated by infighting among political blocs and conflicting regional and international interests. This impasse raises questions about the future of the democratic process and the possibility of the caretaker government, headed by Mohammed Shia al-Sudani, remaining in power longer than anticipated, especially given the escalating military tensions in the region between Iran, the United States, and Israel.
The elections, held amid promises of restoring political stability and ending the state of division, produced a complex parliamentary landscape that prevented any coalition from forming a clear majority government, plunging the country back into a cycle of protracted negotiations and shifting alliances. With disputes persisting over the distribution of sovereign and ministerial posts, the post-election period has become a true test of the Iraqi political system's ability to produce a stable executive authority within constitutional timeframes.
In contrast, the Iraqi scene is no longer separate from the accelerating regional developments, as the Middle East is witnessing a military escalation and an exchange of threats between international and regional powers, which has directly affected the political calculations within Iraq, as it is a sensitive arena of balance between American and Iranian influence
A new security and political reality
Mahmoud Al-Hayani, a member of the Coordination Framework, told Al-Araby Al-Jadeed that “regional security developments and the escalating military tensions between Iran, the United States, and Israel, along with the involvement of some Iraqi factions in the confrontation, have directly impacted the course of political dialogues regarding the formation of the new Iraqi government, and political priorities have shifted towards managing security risks and avoiding an executive vacuum in the country.”
Al-Hayani explained that "the exceptional circumstances that the region is going through have imposed a new political and security reality inside Iraq, which has led to a clear slowdown in the negotiations to form the government, after most of the discussions between the political forces turned to how to protect internal stability and prepare for any possible repercussions of the regional conflict."
He added that “the escalation of military tension and the possibility of expanding the scope of the confrontation have prompted the forces of the Coordination Framework to reassess their political options. There is a trend within the framework that supports renewing the mandate of Prime Minister Mohammed Shia Al-Sudani, considering that the current stage requires the continuation of the same executive leadership to ensure the stability of security and administrative decisions, and to avoid entering into a governmental vacuum that could benefit the parties affected by the crisis.”
Al-Hayani added that "there is another opinion within the coordination framework that leans towards keeping the current government and granting it full powers instead of it continuing as a caretaker government, through political and legislative understandings that allow it to make urgent strategic decisions to confront any security or economic emergency that may result from the ongoing war in the region."
He revealed that “the coordination framework is conducting intensive consultations with other political forces to reach a national consensus that prevents the disruption of state institutions. The current stage requires realistic decisions far removed from traditional political rivalries, because any governmental vacuum in light of regional tension may multiply the security challenges within the country. The coming days will witness crucial political meetings to decide the form of managing the transitional phase, whether through renewing the mandate of the current government or temporarily establishing its full powers, in order to ensure the state’s readiness to confront the possible scenarios resulting from the military escalation in the region.”
Disagreements are the "key factor"
For his part, political analyst Hussein al-Asaad told Al-Araby Al-Jadeed that “linking the delay in forming the new government to the military tensions in the region does not reflect the full picture of the political crisis in the country. Internal disputes between political forces are still the main factor in disrupting dialogues, and not just the escalation between Iran, the United States and Israel.”
At least 4 members of the Popular Mobilization Forces were killed in a bombing in western Iraq.
At least four members of the Popular Mobilization Forces were killed in a bombing of the city of Qaim, which borders Syria in western Iraq, two security sources told AFP on Monday.
A security official reported that "4 members of the Popular Mobilization Forces security were killed and three others were wounded (...) in a bombing that targeted their presence at the 'Martyr Haider' checkpoint at the entrance to the city of Al-Qaim" in Anbar province.
For his part, another security official said that the strike, which he attributed to the United States, resulted in the deaths of five personnel. He explained that the targeted checkpoint housed "members of the Popular Mobilization Forces, the Anbar Operations Command, and the Federal Police."
The US private credit market and the monetary tightening cycle
this is from Iraq's news he does an excellent job of explaining it
Dr. Haitham Hamid Mutlaq Al-Mansour
Dr. Haitham Hamid Mutlaq Al
-Mansour, an economist,
noted that the private credit market in the United States witnessed a significant increase in defaults during 2025, reflecting the growing financial pressures faced by borrowing companies due to persistently high interest rates. According to a report by Fitch Ratings, the default rate among American companies relying on private credit financing rose to approximately 9.2% last year, compared to about 8.1% in 2024—a relatively high level for this type of financing instrument.
The report, which monitored the performance of companies with outstanding debt obligations in the private credit market, recorded 38 defaults by 28 out of 302 indebted companies. This indicates that some companies faced difficulties in meeting more than one financing obligation simultaneously. This development reflects a relative fragility in the ability of many companies to service their debts, particularly given the tight monetary environment in the US economy resulting from the Federal Reserve's interest rate policies in recent years.
This rise in default rates is primarily linked to the nature of loans offered in the private credit market, as a significant portion of them are granted at variable interest rates tied to market indicators. With the US Federal Reserve raising interest rates in recent years to combat inflation, the cost of servicing these debts has automatically increased, leading to greater financial burdens on borrowing companies, particularly those already struggling with limited profit margins or high levels of leverage.
Many companies also failed to adopt sufficient tools to hedge against the risks of interest rate volatility, such as swap contracts or interest rate fixing, due to the following reasons:
1. Insufficient use of hedging instruments during interest rate volatility makes their cash flows more sensitive to rising financing costs. In such circumstances, companies become more vulnerable to default if interest rates remain at their current levels for an extended period.
2. High hedging costs: Contracts used for hedging, such as interest rate swaps or futures contracts, impose additional costs on companies. Therefore, some companies prefer to bear the risk rather than pay these costs.
3. The desire to minimize contractual constraints: Hedging instruments may impose additional obligations or conditions with financial institutions, which some companies prefer to avoid in order to maintain greater flexibility in managing liquidity.
4. Limited financial expertise among some companies, particularly medium-sized companies that rely on private credit. These companies do not always have dedicated financial teams to manage complex risks.
Therefore, when the monetary tightening cycle began and interest rates rose rapidly, these companies found themselves facing much higher financing costs than expected, increasing the likelihood of default.
These developments are causing increasing concern in financial circles, given the rapid growth of the private credit market over the past decade. The expanding role of major asset management firms like BlackRock and Blue Owl Capital in financing companies outside the traditional banking system is partly a consequence of stricter regulations on banks following the 2008 global financial crisis, which prompted many companies to seek alternative sources of financing.
While this growth has contributed to diversifying companies' funding sources and reducing their direct reliance on banks, the complexity of the private credit market's structure and its low transparency may harbor underlying risks, especially given the increasing default rates in a tight monetary environment. Although current indicators do not point to a widespread financial crisis, continued pressure on borrowing companies may prompt regulators to closely monitor this sector in the coming period.
Therefore, the rise in defaults in the private credit market is seen as a phenomenon that has crystallized within the framework of the monetary policy pursued by the US Federal Reserve in recent years. The monetary tightening that began in 2022 to curb high inflation led to interest rates rising to levels not seen in markets for nearly two decades, directly impacting the cost of financing in the economy, particularly in sectors reliant on variable-rate loans such as the private credit market. The Fed's strategy at that time was based on curbing aggregate demand by raising the benchmark interest rate and reducing liquidity in the markets, with the aim of stabilizing inflation at the target level. However, while this strategy was relatively successful in mitigating inflationary pressures, it also led to higher debt servicing costs for borrowing companies. Since a large proportion of loans in the private credit market are linked to variable interest rates, almost every increase in the interest rate is passed directly on to borrowers, raising interest payments and putting pressure on companies' cash flows.
In conclusion, the high default rate of approximately 9.2%, according to Fitch Ratings data, can be interpreted as a side effect of the monetary tightening cycle. Monetary policy traditionally operates through what is known as the “credit channel,” where raising interest rates reduces the ability of companies and households to borrow and spend, thereby cooling economic activity. However, in the private credit market, the impact of this channel is more pronounced due to the reliance of loans on variable interest rates and the high levels of leverage held by many borrowing companies. Furthermore, the structure of this market increases its sensitivity to monetary policy decisions. Institutions that manage private credit funds, such as BlackRock and Blue Owl Capital, often provide financing to mid-sized companies or high-debt acquisitions, which are less able to absorb interest rate shocks than larger companies that can access bond markets or refinance their debt on more favorable terms. Therefore, higher interest rates not only increase borrowing costs but can also lead to a decline in company valuations and refinancing capacity, increasing the likelihood of default.
This development reflects what is known in monetary economics as a "stress test," which typically occurs after periods of monetary tightening. When interest rates rise rapidly, sectors most reliant on cheap credit are the first to show signs of vulnerability. Similar events have occurred in earlier periods of financial history, albeit in different sectors, such as before the 2008 global financial crisis when the cycle of interest rate hikes exposed the fragility of the subprime mortgage market.
Therefore, in light of this analysis, it can be said that the rise in private credit defaults may not necessarily represent a failure of monetary policy, but rather is part of the mechanism of its transmission to the real economy.
Therefore, continued economic stagnation may present the Federal Reserve with two objectives: maintaining a tight monetary policy to curb inflation and preserve price stability, or easing monetary restrictions to prevent pressures from spreading from the private credit sector to the broader financial system. Achieving one of these objectives, or balancing the two, depends on closely monitoring these indicators, given their importance in determining the timing of any future shift in the interest rate cycle.
Coffee is securing a place in the Iraqi market, and the number of cafe patrons is doubling.
Perhaps before 2015, or a little earlier, Iraqis couldn't sit in places dedicated to selling coffee or various hot drinks. Instead, they were limited to small shops selling tea or perhaps cold drinks and ice cream.
Baghdadis, in particular, remember that the first café specializing in coffee opened in the Karrada district. After that, the trend gradually expanded until dozens of coffee shops selling various types of beverages could be found in every district and across all Iraqi provinces. For many, drinking coffee or sitting in these cafes became a daily ritual, whether for socializing or even working.
Fatima Samir, an academic, told Al-Mada, "With recent technological advancements, many, including myself, have adopted smartphones, laptops, and online work systems. Therefore, these cafes have become an essential place for this demographic."
Samir adds, "Also, students, especially university and high school seniors, have started frequenting these cafes primarily for reading, primarily because the cost is low, and the quiet atmosphere provides them with the space and freedom to study."
Regarding the development of these cafes, Arkan Alaa, manager of a branch of a famous Baghdad cafe, says, "The coffee industry is
developing remarkably. Every year, new drinks are introduced to Iraq and requested by customers."
Alaa explains to Al-Mada, "Many cafe owners send their experienced staff on training courses to Arab countries specializing in coffee or to European countries to keep up with developments in the field and learn about all the new drinks, in addition to importing the finest types of
coffee beans to serve to customers."
On the other hand, many cafes have adhered to their core business of selling coffee and pastries, without introducing food or shisha. This is the case in most large cafes, where there is an agreement to maintain the prevailing style in this regard.
Firas Ghazi, the manager of a small cafe in the Yarmouk area, told Al-Mada, "The most important issue in a cafe is maintaining its appearance. Patrons of these places are looking for tranquility and to drink coffee. If shisha and food are introduced, the cafe's appearance will change, and it will automatically lose its popularity and begin to decline. This has happened with many cafes."
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