US calls for 'action, not words' from Iraq over militias
US State Department said Wednesday Washington is seeking “action, not words” from Iraqi leaders as concerns grow over armed militias within state institutions, while Prime Minister-Designate Ali al-Zaidi is expected to announce his cabinet in the coming days.
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“The Iraqi leaders, including the Prime Minister-designate, understand what the United States is looking for,” the senior US State Department told reporters, adding that they are "looking for action, not words.”
The official described a “blurry line” between the Iraqi state and armed militias, saying reform requires concrete steps including expelling “terrorist militias” from state institutions, cutting access to the national budget, and stopping salary payments to fighters.
The remarks come as discussions continue over forming Iraq’s next federal government.
On Wednesday, Zaidi’s office said that he received a phone call from US Secretary of War Pete Hegseth, who congratulated him on his designation to form the new government.
They discussed bilateral relations in various fields, particularly security cooperation under the Strategic Framework Agreement, and emphasized the importance of reactivating training to bolster the capabilities of the Iraqi Armed Forces.
Washington has repeatedly urged Baghdad to assert full control over its security apparatus and curb the influence of armed groups operating outside state command.
“Those are the type of concrete actions that would give us confidence and say that there’s a new mindset,” the American official told reporters.
According to the official, some elements within the Iraqi state continue to provide political, financial and operational cover to militias, complicating efforts to separate state authority from armed groups. They also said US facilities in Iraq were targeted more than 600 times during the recent US-Iran war that began on February 28 before a ceasefire was announced on April 8.
The remarks underscore Washington’s broader concern over non-state armed actors influencing Iraqi governance and security decision-making processes.
Al-Zaidi and the US Secretary of Defense emphasize the reactivation of training for Iraqi forces.
Prime Minister-designate Ali Faleh al-Zaidi received a phone call from US Secretary of Defense Pete Hegseth, who congratulated him on his appointment to form the new government.
During the call, bilateral relations between the two countries were discussed in various fields, particularly those related to security cooperation, in accordance with the Strategic Framework Agreement between Iraq and the United States.
The call emphasized the special relationship between the two countries and the importance of working to reactivate it in the area of training, in order to enhance the capabilities of the Iraqi armed forces and raise their level of efficiency.
Al-Zaidi and the US Secretary of Defense discuss reviving the special relationship between Baghdad and Washington 2026-05-06 | 10:03 Prime Minister-designate Ali Faleh al-Zaidi receives a phone call from the US Secretary of Defense Prime Minister-designate Ali Faleh al-Zaidi received a phone call from US Secretary of Defense Pete Hegseth, who congratulated him on his appointment to form the new government. During the call, bilateral relations between the two countries were discussed in various fields, particularly those related to security cooperation, in accordance with the Strategic Framework Agreement between Iraq and the United States. The call emphasized the special relationship between the two countries and the importance of working to reactivate it in the area of training, in order to enhance the capabilities of the Iraqi armed forces and raise their level of efficiency. Media Office of the Prime Minister, Mav 6. 2026
The Central Bank of Iraq: The flow of foreign currency into Iraq is stable.
The dollar exchange rate and the complex equation between budget support and rising inflation
The dollar exchange rate represents a dual-impact economic tool, as it contributes to improving the trade balance by boosting exports, but at the same time it fuels inflation and raises the cost of imports, which puts decision-makers before a delicate equation between financial stability and social stability.
Economic expert Salah Nouri confirmed on Wednesday that governments resort to raising the exchange rate of the dollar against the local currency to cover the financial deficit, especially during times of chronic financial crises.
Nouri said that this step has both advantages and disadvantages, explaining that one of its most prominent advantages is providing liquidity to the government that contributes to bridging the deficit, as well as making local exports cheaper for importing countries, which enhances competitiveness and supports the trade balance.
He added that one of the most significant drawbacks is the high inflation rates and the increased prices of imported goods, which directly impacts the poor and low-income groups, especially in the absence of government measures to alleviate the burdens of inflation.
The unified treasury recovers trillions of dinars and closes thousands of bank accounts.
The unified treasury recovers trillions of dinars and makes tangible progress in controlling government accounts, as the Ministry of Finance announced the closure of 3,743 bank accounts and the recovery of billions of dinars from inactive accounts.
The Ministry of Finance announced on Wednesday that more than 3 trillion dinars and 333 million dollars have been returned to the public treasury account since the implementation of the unified treasury account.
A report from the Accounting Department at the Ministry of Finance stated that “the number of zero accounts that were closed in accordance with Cabinet decisions was (3743) bank accounts,” indicating that “the total amount recovered during the implementation of Decision No. (23581 of the year (2023) on inactive accounts that had been inactive for more than 5 years was 159 billion, 560 million, 226 thousand, 325 dinars, and in dollars 133 million, 866 thousand, 180 dollars.”
He added that “the amounts recovered from the dormant accounts of the public treasury amounted to 26 billion, 348 million, 90 thousand and 17 dinars, and in dollars 198 million, 304 thousand and 312 dollars,” noting that “the recommendations regarding the non-moving accounts belonging to the departments affiliated with the Ministry of Finance have been completed, as the total amount recovered for the public treasury amounted to (149220725960) dinars.”
The report explained that “the total amount recovered from the remaining balance of the unified treasury account for salaries for the year 2024, which is withdrawn monthly, amounted to large sums in dinars of 726990927864 dinars and in dollars of $458928, while other amounts were recorded relating to the remaining salaries for the year 2025 amounted to 299601275444 dinars and in dollars of $495790.”
Remaining operating expenses
He noted that “pending the end of the fiscal year on 12/31/2023, banks were instructed to withdraw the remaining operating expenses, and the total amounts withdrawn according to the unified treasury account amounted to large sums in dinars.”
The report indicated that “during the year 2025, banks began withdrawing amounts from the (old) operating expenses accounts into the unified treasury account, amounting to 293819265860 dinars.”
As part of organizing the work, after the end of the fiscal year on 12/31/2025, the cash liquidity for the operating accounts was withdrawn, while continuing to adopt the previous work mechanism to ensure the accuracy of matching between bank statements and central records.
The report confirmed that “the total amount recovered for the public treasury during the implementation of Resolution No. (24913) of 2024, related to central accounts that have not been active for more than five years, amounted to 34071023130 dinars and $9481.”
In a related context, the report explained “the implementation of the paragraph regarding the transfer of bank account balances for centrally funded entities that have not been held for five years, where an account was opened with the bank in the name of the Ministry of Finance/Accounting Department, and the necessary procedures were completed in coordination with the banks,” noting that “the number of accounts is 121 with an amount of 48958677591496 dinars and in dollars 1644977 dollars.”
Implementing the unified treasury system
She also noted “the continuation of work on implementing the unified treasury system, with advanced steps taken to address inactive accounts, where data was collected, audited and submitted to higher authorities to make the necessary decisions regarding them,” pointing out “the completion of control and oversight procedures for bank accounts, by contacting government agencies to provide a comprehensive database of the accounts they have open, whether paper or electronic.”
He stated that “in implementation of paragraph (Second 3 (a) - (b) of Resolution 24913 of 2024, which included transferring the balances of bank accounts of self-financing entities that have been more than (5) years old and those that have not been (5) years old with banks to the account opened in the name of the Ministry of Finance / Accounting Department until the committees complete the work regarding their recommendations, and in light of that, our letter No. (49) was issued on 1/5/2025 to inform the banks to take the necessary action.”
The report confirmed “the follow-up and monitoring of balances that were transferred in accordance with Cabinet Resolution (24913) of 2024 to our accounts opened at the main branch of each bank that has inactive accounts. Our circular No. (24089 on 2025/8/25) was issued to provide us with a statement for each account.”
He explained that “with regard to the recommendations that were provided to us by the committees in the ministries and non-ministerial entities formed according to Resolution 23452 of 2023, paragraph (3) thereof, a unified database of accounts was prepared for the purpose of sorting and settling those accounts and sending them to the banks according to our circular No. (12477) dated 5/11/2025 for auditing and matching the inactive bank accounts belonging to the spending units and stating any observations on them. After the issuance of Cabinet Resolution No. (373) of 2025, which included the formation of a committee, Diwani Order No. (46) was issued regarding settling the issue of inactive accounts, whereby a committee was formed headed by the Financial Control Bureau and with the membership of the Accounting Department and the Rafidain and Rasheed Banks, and all the documents were handed over to the committee member from the Ministry of Finance, according to the note of the respected Director General.”
Tightening control and oversight
He explained that “in order to tighten control and oversight of bank accounts at spending units, our circular No. (29016 on 10/30/2024) was issued, followed by circular No. (34325) on 12/23/2024, which included the creation of a unified treasury account division in the financial department of the headquarters of each ministry or entity not affiliated with a ministry or governorate, as well as for the general administrations of government banks, to create a database of bank accounts opened with them and to update it periodically.”
He pointed out that “bank account databases were received for the purpose of auditing and cross-referencing them from some of the Unified Treasury Account branches that were created in ministries, non-ministerial entities, and governorates, along with the bank account databases, after they were sent to the Unified Treasury Account branches in government banks.”
He emphasized, “Regarding the comprehensive banking system and to demonstrate the extent of its application in government banks and their branches that have joined, and the number of unified treasury bank accounts in each branch, statistics have been prepared for the purpose of preparing this memorandum.”
He pointed out that “in order to complete the monitoring of the movement and balances of bank accounts at bank branches and to access fast and reliable information, an electronic platform was created between government banks and this division according to pre-planned stages, including:
The first stage includes the accounts for the unified treasury (salaries/operating expenses) according to the Excel model that we have prepared, which includes all the information that we see as necessary in the work of the unified treasury account, according to our circular (14192 on 2025/5/25).
The second phase is subject to the successful implementation of the first phase. Our letter No. (18309 on 7/8/2025) was issued, which includes directing government banks to upload government (current) accounts via the platform.
The third phase, after the successful completion of the second phase, will involve unifying the platforms after selecting the most suitable platform that best meets the work requirements. A ministerial order was issued to form the technical team, which was tasked with unifying the platforms according to a modern work mechanism, and it contributes to implementing the steps of the unified treasury account. Successive meetings have been held, and we are now in the semi-final stages of implementing the third phase.
development process
The fourth (targeted) stage is a developmental process that can be updated in the field of platforms or by adding any new work mechanism that is implemented according to the requirements of the work.
He continued, “Based on the request of the Investment Plan Department to provide them with the Investment Plan accounts to compare them with the accounts they have,
our circular No. 31769 dated 11/2/2025 was prepared and directed to the banks to provide us with the accounts that they printed (my investment).”
He pointed out that “in order to resolve the non-active accounts and move towards advanced steps in the unified treasury account, and due to the existence of non-active accounts that appeared at the bank branches, our circular No. (26169 on 9/15/2025) and its successor (29404 on 10/12/2025) was issued to provide us with the non-active accounts. The data received by us was collected and verified, and it was submitted to the General Secretariat of the Council of Ministers/Office of the Secretary-General by virtue of letter No. (8558 on 4/13/2026) for the purpose of presenting it at the Council of Ministers session to issue a decision regarding it.”
The report concluded that “the total amount returned to the public treasury account since the implementation of the unified treasury account until the date of preparation of the report amounted to (3683869713303) dinars and (333134691) dollars only, while the number of zero bank accounts that were cancelled amounted to (3743) bank accounts.”
Oil discovered in Iraq with huge reserves near the Saudi border
An oil discovery has been announced in Iraq with reserves approaching 9 billion barrels, according to details obtained by the specialized energy platform, issued from Washington.
The announcement of the oil discovery within the “ Qarnayn ” area came during Oil Minister Hayyan Abdul Ghani’s reception on Wednesday, May 6, of a delegation from the Chinese company Zhenhua, in a move that supports Baghdad’s strategy to raise its production capacity to 6 million barrels per day by 2029.
During the meeting, developments in the work in the “Al-Qarnayn” exploration area, along with the East Baghdad South field, were discussed, in the presence of the Director General of the Central Oil Company, Muhammad Yassin.
The Minister of Oil confirmed the discovery of oil in Iraq in the Al-Qarnayn block, which was referred to the Chinese company as part of the fifth supplementary and sixth licensing rounds during 2024.
Abdulghani stressed the importance of accelerating the pace of work to achieve the goals of oil projects, in order to ensure the sustainability of crude oil production and maximize the benefit from associated gas.
Two Horns Field
The Al-Qarnayn field is the first exploration block to record an oil discovery within the blocks offered in the fifth supplementary and sixth rounds, demonstrating the great potential of undeveloped areas in Iraq, especially in border areas.
An oil discovery was made in Iraq in the Shams-11 exploratory well, which began drilling on January 10, 2026. On February 24, 2026, hydrocarbon reservoirs were reached with estimated reserves of approximately 8.8351 billion barrels.
The new oil discovery in Iraq is located within the (MUS) formation at depths ranging between 1916 and 1965 meters, with an initial production rate of approximately 3248 barrels per day.
The oil discovered in the Al-Qarnayn area is classified as light oil, which enhances its economic viability and ease of development.
Oil discovery site in Iraq
The Al-Qarnayn area is located in the southwest of the country within the borders of Najaf Governorate, along the Iraqi-Saudi border, and is considered one of the promising exploration areas, as it extends over an area estimated at about 8773 square kilometers.
The large geographical extent reflects additional opportunities for the existence of other potential reserves, opening the way for further exploration operations during the next phase.
The oil exploration, development and production contract for the block was signed on October 17, 2024 between the Middle Oil Company and North Petroleum International, wholly owned by the Chinese company Zhenhua, as part of the oil licensing rounds.
The contract came into effect on November 18, 2024, before operations were subsequently transferred to Qurnain Petroleum Limited, which took over management of the block starting from May 17, 2025, as the new operator of the project.
During the meeting, Zenhua reviewed the ongoing work stages, both in the Al-Qarnain area through the operating company, and in the East Baghdad South field, where EBS is working to increase production rates.
The company proposed the idea of rapid investment in the exploration block, which would contribute to accelerating the conversion of discoveries into actual production, and maximizing economic returns in the shortest possible time.
US-Iranian rapprochement over a one-page "memorandum of understanding" to end the war
this came from Axios and I am a bit skeptical of them but if it is true other news will come out later too
US officials and informed sources reported that the White House is close to reaching an agreement with Iran on a one-page "memorandum of understanding" aimed at ending the current war and setting a framework for more detailed nuclear negotiations.
General features of the agreement
The United States expects to receive Iranian responses on several key points within the next 48 hours. While a final agreement has not yet been reached, sources confirmed that the two sides are very close to signing, marking the closest understanding has been reached since the outbreak of the war.
The memorandum (draft) includes the following provisions:
Iran's commitment to a temporary halt to uranium enrichment.
- The United States agreed to lift sanctions and release billions of dollars of frozen Iranian funds.
- Lifting mutual restrictions on traffic in the Strait of Hormuz.
However, many of these provisions remain conditional on reaching a final agreement, leaving the door open to the possibility of a return to war or remaining in a state of "prolonged stalemate" where the fighting on the ground stops without resolving the underlying issues.
Behind the scenes of the negotiations and Trump's role
According to US officials, President Donald Trump’s recent decision to back down from a military operation he had announced in the Strait of Hormuz, and to avoid the collapse of the fragile ceasefire, came as a result of progress made in these talks.
Negotiations over the 14-point memorandum are being conducted by Trump's envoys, Steve Wittkopf and Jared Kushner, with Iranian officials directly and through intermediaries.
Details of the "30-day period"
The memorandum, in its current form, calls for a declaration ending the war in the region and the commencement of a 30-day negotiation period to reach a detailed agreement that includes:
- Opening the Strait of Hormuz permanently.
- Restricting Iran's nuclear program.
- The complete lifting of US sanctions.
It is proposed that these negotiations be held in Islamabad or Geneva. During this period, the US naval blockade and Iranian restrictions on shipping would be gradually lifted, with Washington retaining the right to reimpose the blockade or resume military action should the negotiations fail.
The nuclear file: points of disagreement and agreement
The duration of the "enrichment freeze" is a crucial point of contention; Washington demands 20 years while Iran proposes 5 years, with current negotiations focusing on a period between 12 and 15 years. After this period, Iran will be permitted to enrich uranium to a low level (3.67%).
The Iranian commitments in the memorandum also include:
- A pledge not to seek to acquire nuclear weapons or engage in "militarization" activities.
- Discussion of a clause stipulating that underground nuclear facilities should not be operated.
- Commitment to an enhanced inspection regime, including "surprise inspections" by United Nations inspectors.
- Surprise in the negotiations: Sources revealed that Iran may agree to "transfer highly enriched uranium" out of the country (possibly to the United States), a key US demand that Tehran had previously rejected.
Doubts and cautious optimism
Despite the progress, caution prevails within the White House due to divisions within the Iranian leadership and the difficulty of forging consensus among the various factions there. In this context, Secretary of State Marco Rubio stated, "We shouldn't have a fully written agreement in one day; it's very complex and technical. But we need a clear diplomatic solution regarding the issues and the concessions." However, Rubio expressed skepticism toward some Iranian leaders, using harsh language that reflects a lack of confidence in their seriousness about finalizing the deal.
Washington wants Iraq's next prime minister to take "concrete steps" to distance himself from Tehran.
A senior official said the United States is looking for “concrete steps” from Iraqi Prime Minister-designate Ali al-Zaidi to distance the state from pro-Iranian armed groups before resuming financial and security assistance.
The “Coordination Framework,” a political alliance of pro-Iranian parties holding the largest bloc in parliament, tasked al-Zaidi with forming the next government, replacing Nouri al-Maliki. The prime minister-designate received a phone call from President Donald Trump, who had threatened to cut off all US aid if al-Maliki returned to the premiership.
But a senior U.S. State Department official, speaking on condition of anonymity, said Tuesday that al-Zaidi needs to clarify the “blurred line” between the Iraqi state and pro-Iranian groups.
Washington suspended cash payments for oil revenues, which were handled by the Federal Reserve in New York under an agreement dating back to the aftermath of the 2003 US invasion of Iraq, as well as suspending security assistance in the wake of a series of attacks on US interests following the outbreak of war in the Middle East with a US-Israeli attack on Iran.
The official stressed that “the resumption of full support requires first expelling the terrorist militias from all state institutions, cutting off their support from the Iraqi budget, and preventing the payment of salaries to their fighters.”
He added, "These are the concrete measures that will give us confidence and confirm the existence of a new mindset."
The official stated that US facilities in Iraq have been subjected to more than 600 attacks since the outbreak of war on February 28. The attacks have stopped since the ceasefire agreement between the United States and Iran on April 8, with the exception of Iranian strikes in the Kurdistan region.
The official said, “I do not underestimate the seriousness of the challenge or what it will take to unravel these relationships. It may begin with a clear and unequivocal political statement that terrorist militias are not part of the Iraqi state,” considering that some parties within the Iraqi state “still… provide political, financial and operational cover for these terrorist militias.”
The “coordination framework” announced in January the nomination of Maliki to form the government, succeeding Mohammed Shia al-Sudani. However, Washington threatened to halt support for Baghdad should Maliki return to the position he held for two terms between 2006 and 2014. His relations with Washington cooled during his second term, while his relationship with Tehran strengthened.
Attacks claimed by armed groups in Iraq have targeted the US embassy in Baghdad, its diplomatic and logistical headquarters at the capital's airport, and oil fields operated by foreign companies.
Most Iraqi armed groups coalesced under the umbrella of the Popular Mobilization Forces (PMF), established in 2014 to fight the Islamic State, before being integrated into the Iraqi military and becoming part of the armed forces. However, the PMF also includes brigades belonging to Iranian-backed factions that operate independently.
Repositioning of factions in Iraq… Handing over weapons is the gateway to participation in al-Zaydi's government
Iraq is witnessing a significant political and security development: several armed factions have announced their intention to hand over their weapons to the Popular Mobilization Forces (PMF) in the near future. This move is interpreted as a political repositioning in preparation for participation in the anticipated Iraqi government headed by Ali al-Zaidi .
Informed Iraqi sources confirmed to Al-Nahar that "the factions' move, spearheaded by Asa'ib Ahl al-Haq led by Qais al-Khazali, Kata'ib al-Imam Ali led by Shibl al-Zaidi, and Ansar Allah al-Awfiya led by Haider al-Gharazi, comes within the framework of their efforts to solidify their presence in the political arena and prepare themselves for joining the new government."
The sources added that "this move coincides with escalating international pressure, led by the United States , which has intensified its messages to Iraqi political leaders in recent weeks, warning against the inclusion of any armed faction in the upcoming government."
It indicates that “ Washington informed the Iraqi leadership, as well as the prime minister-designate, that the participation of any armed faction in the government would negatively affect bilateral relations, with the possibility of taking political, economic and security measures, especially in the areas of financial and security cooperation.”
A mere formality?
Observers believe that the announcement by some factions of their readiness to hand over their weapons to the Popular Mobilization Forces (PMF) may be interpreted in Washington as a superficial step aimed at repositioning, not dismantling the military structure. These reorganizations may also be used as a means to absorb international pressure without fundamentally altering the nature of armed influence.
Strategic affairs expert Abbas al-Jubouri told Al-Nahar, "Handing over weapons to the PMF may not be seen internationally as a genuine step towards ending the presence of weapons outside the state's control, but rather as a measure within the context of political and organizational repositioning."
He added, "The American assessment depends on the extent of actual change in the factions' military decision-making structure, not on political pronouncements. Any step that is not accompanied by a genuine dismantling of the armed structure and full integration into official institutions will be considered an attempt to absorb pressure."
Testing the seriousness of integration and weapons control
Al-Jubouri warns that "reorganizing Iraqi factions under an official umbrella without changing the nature of the leadership or the sources of decision-making could entrench the duality of armed groups within the state, raising international concerns about security stability in Iraq."
He points out that "continuing this approach could expose the next government to increasing political and economic pressures and could negatively impact the level of security cooperation and international support, thus necessitating the adoption of a clear path that ensures the state effectively monopolizes weapons."
Conversely, analysts believe that the success of this path in modifying the international stance remains contingent on the transparency of its implementation and the extent of genuine integration within the security apparatus, free from the duality of decision-making and armed groups. Experts also emphasize that any real transformation requires broad internal consensus and direct dialogue with international parties, given the complexities of the Iraqi landscape and the intertwining of security and political issues.
Experts: “Security guarantees” are a prerequisite for the return of international companies and missions to Iraq
Efforts to restore international activity in Iraq face significant challenges, with experts and specialists linking the return of foreign companies to certain conditions.
Diplomatic missions should obtain tangible security guarantees.
These demands come in the wake of a wave of withdrawals following attacks by armed groups on the headquarters of those missions and companies.
During a period of escalation that lasted forty days. Experts confirm that the departure of these companies caused serious damage to Iraq's national income and foreign relations.
This necessitates opening direct government communication channels to provide the necessary assurances for her return. In the same vein,
The responsibility lies with the government to rebuild investor confidence.
It is worth noting that the crisis worsened after embassies and diplomatic centers were subjected to daily attacks by missiles and drones.
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Trump: I believe we have won in Iran.
US President Donald Trump announced on Wednesday that "very good talks" had taken place with Iran during the past 24 hours, and that it was very possible that an agreement would be reached, adding, "I think we have won with Iran."
Trump added, during remarks to reporters at the White House, that "assassinating layers of leadership in Iran is, to me, regime change."
He stressed that Iran "cannot possess a nuclear weapon," adding that Tehran had agreed to this "among other things," noting that the United States wants "to keep everyone alive."
The government's features are taking shape, and the program is now in the hands of Parliament.
As the political scene approaches a crucial moment, dialogues between political blocs are accelerating to finalize the formation of the new government, amid growing expectations that the cabinet will be announced and voted on next Monday, according to political data circulating within parliament.
These developments come amid advanced political understandings between the main parties, which have given the prime minister-designate ample room to choose his ministerial team, in parallel with the continuation of talks on the distribution of portfolios and the establishment of political entitlements for the various components, which makes the birth of the government dependent on precise agreements that have not yet been definitively settled.
In a related context, parliamentary data indicates that the government program has reached, or is about to reach, the House of Representatives, in preparation for its discussion and approval within the constitutional process related to passing the cabinet.
As the decision nears, the political debate is shifting towards the nature of the government program rather than the names, as a number of MPs are demanding a move away from quotas and the adoption of standards of competence, integrity and transparency in the selection of ministers, while enhancing transparency by publishing their biographies to the public.
In this context, MPs confirm that the features of the government have begun to gradually take shape, despite the continued disagreements over some portfolios and the mechanisms for distribution among the blocs.
Political.
Parliamentary initiatives have also emerged concerning the regulation of the relationship between the executive position and electoral entitlement, through a proposal that obliges ministers not to run in the upcoming elections, and prevents their first-degree relatives from running, in addition to including holders of special grades and undersecretaries of ministries, with the aim of limiting the exploitation of government influence in election campaigns, with the intention of including this in the election law later.
In parallel, interest in the security file is escalating as one of the top priorities of the next government, with calls for a comprehensive reform of the security and military system and an update of the combat doctrine in line with regional and international changes.
MP: 2026 budget...service-oriented and focused on improving living standards
MP Mohammed Al-Shammari stressed that the budget file is a high priority for the political forces during the current stage, explaining that this year’s budget differs from previous budgets due to the formation of the government during the first half of the year, which imposed a special nature on the preparation of financial schedules and the distribution of allocations between ministries and governorates.
Al-Shammari told Al-Sabah newspaper that the government is focusing on service and infrastructure projects, prioritizing sectors that directly impact citizens' lives, such as electricity, water, roads, health, and education. He noted that the 2026 budget will be service-oriented and development-focused, with expanded support for stalled projects and the launch of new ones in several governorates. He added that the next phase requires political stability and harmony between the executive and legislative branches to ensure the budget's timely passage, especially since the Iraqi public is awaiting tangible solutions to service and economic issues. He pointed out that the government aims to direct revenues toward improving living conditions, creating job opportunities for young people, and supporting the agricultural and industrial sectors. Al-Shammari indicated that completing the cabinet within the specified timeframe will positively impact the implementation of financial and service plans, as filling the remaining ministerial positions will empower the government to execute its program and approve projects related to the new budget.
Washington wants an Iranian response within 48 hours
Tehran sets its conditions from Beijing: We will only accept a fair and comprehensive agreement.
Iranian Foreign Minister Abbas Araqchi affirmed on Wednesday (May 6, 2026) that his
country will only accept a "fair and comprehensive agreement"in its negotiations with the
United States, in statements he made after his meeting with his Chinese counterpart Wang
Yi in Beijing, noting that Tehran will do its utmost to protect its legitimate rights and
interests in any future agreement.
Araghchi's remarks came at a time when US President Donald Trump indicated that "great
progress" had been made in the negotiation process, announcing the temporary
suspension of "Project Freedom"to escort ships through the Strait of Hormuz, in an
attempt to push for de-escalation with Tehran.
In this context, the American website Axios quoted officials on Wednesday as saying that
Washington and Tehran are close to agreeing on a one-page memorandum to end the war,
which includes opening the Strait of Hormuz from both sides, and Iran suspending uranium
enrichment, in exchange for lifting American sanctions and releasing frozen Iranian funds,
noting that Washington is waiting for an Iranian response to these points within 48 hours.
It is worth noting that the Strait of Hormuz has been effectively closed since the conflict
began on February 28, disrupting about 20 percent of global oil supplies and sparking an international energy crisis.
The coordination framework is meeting this evening to finalize the formation of the government.
The meeting comes to complete previous discussions and resolve the issue of forming the government.
Venezuela’s Oil Future at a Crossroads
Despite the green shoots of economic stabilization, Venezuela’s energy sector investment environment must evolve from a negative protection framework to a positive model for recovery. Two of the most significant blocking actions in US history — Executive Orders 13303 (Iraq) and 13884 (Venezuela) — both sought to protect oil revenues from creditor attack. However, they were built for entirely different purposes. Understanding those differences is essential for shifting Venezuela from a defensive sanctions architecture toward the legal and financial framework needed for reconstruction.
Venezuela sits on the world’s largest proven oil reserves, more than Saudi Arabia, more than Iraq. On paper, it should be one of the wealthiest countries in the Western Hemisphere. In practice, it has witnessed one of the most dramatic economic collapses of the modern era — and understanding why matters for what comes next.
From Resource Wealth to Systemic Collapse
At its peak in 1998, Venezuela pumped nearly 3.5 million barrels per day of oil. By late 2025, that figure had fallen to around 800,000 b/d, less than 1% of global production. The decline was not geological. Venezuela’s reserves are largely intact, buried beneath the Orinoco Belt in the form of ultraheavy crude.
The collapse was political and institutional. Mismanagement, stringent US sanctions and Venezuela’s lost access to international markets have undermined the country’s extraordinary natural endowments.
The human cost has been staggering. Venezuela’s GDP fell by an estimated 75%-80% between 2012 and 2020, a contraction of a scale that usually only occurs during major wars. The ensuing humanitarian crisis drove nearly eight million Venezuelans to leave the country from 2019 onward.
Oil is not just Venezuela’s main export. It accounts for between 50% and 60% of government revenues and up to 20% of GDP. Salaries, social programs and hospital projects flow from it. Which is precisely why what happens to that revenue stream, legally and financially, is not a technocratic deal. It is the central question of whether Venezuela recovers at all. The US is now invested in this recovery.
On Jan. 3 this year, US forces captured President Nicolas Maduro in an operation that killed at least 80 people, triggering the most consequential political transition Venezuela has seen in a generation. Washington moved quickly to assert control over oil proceeds, while Maduro’s successor, President Delcy Rodriguez, has overhauled the country’s energy sector with major pro-investment reforms.
What legal framework governs those revenues, and who they are protected from, is precisely what this analysis addresses.
Immunization Versus Escrow: The Legal Divide
Following a successful invasion, the US signed Executive Order 13303 in May 2003. This intervention achieved something legally remarkable: it placed Iraq’s entire petroleum revenue stream beyond the reach of courts, creditors and enforcement actions.
The order was sweeping by design. It immunized not just oil flows, but all proceeds derived from them, shielding the Development Fund for Iraq from judgement execution. An entire coalition of international actors, not just Washington, had decided that Iraq’s reconstruction finances should be untouchable.
That structure was not accidental. Its drafters had watched the Argentina debt crisis unfold in real time. They had seen how NML Capital and other holdout creditors used US courts to obtain injunctions that paralyzed Buenos Aries’ ability to pay even its restructured bondholders — the infamous “pari passu” trap that Judge Griesa would later formalize.
EO 13303, and the statutory authority underpinning it in the Emergency Wartime Supplemental Appropriations Act, was written specifically to foreclose that possibility. The language of “shall not be subject to judicial process, or judgement” that surrounded the act was a direct answer to the hostile fund litigation playbook. In simple terms, Iraq’s oil revenues were beyond creditor reach.
Venezuela’s situation under Executive Order 13884, signed in 2019, is structurally different, and to grasp both what the US-Venezuela economic relationship can offer and where its current limits lie, it is paramount to understand how it differs from the Iraqi model.
EO 13884 blocked Venezuelan government property within the US’s jurisdiction and restricted dealings with PDVSA. Revenues from assets like Citgo were diverted into restricted custody accounts accessible only with Office of Foreign Assets Control (Ofac) authorization. Those funds were frozen, but not immune.
The key legal distinction is between immunization and blocking. Unlike under EO 13303, Section 1, where a creditor cannot touch the property and the sovereign can deploy it under international oversight, EO 13884, Section 1(a), blocks the property. Meaning neither the creditor nor the sovereign can access it without US permission.
Venezuela’s revenues were placed in a form of controlled escrow under political duress. Bondholders pursuing PDVSA claims and arbitration award holders alike retained the ability to pursue their cases through US courts and international tribunals. EO 13884 brought benefits but did not eliminate pressure.
This distinction reflects the divergent policy objectives of the two orders. EO 13303 served as an enabling instrument, with reconstruction, coordinated debt restructuring through the Paris Club and the stabilization of post-conflict Iraq being the primary goals.
EO 13884 had more of a coercive purpose, including sanctions, pressure and regime-change leverage. A framework designed to constrain a government cannot simultaneously serve as a legal safe harbor for that government’s assets.
The political context has now shifted dramatically, and in ways that make the Iraq comparison more urgent, not less. The removal of Maduro in January transformed Venezuela’s political and financial landscape. Venezuelan sovereign bonds surged nearly 30%, and the creditor community signaled readiness to engage in restructuring talks.
Washington’s response to the transition validates the core legal argument of this analysis. Rather than moving toward the immunization model, the Trump administration formalized and extended the escrow architecture. US President Donald Trump announced that Venezuelan oil would be marketed and sold by the US, with proceeds deposited into US-controlled accounts, with a wave of new Ofac General Licenses following through.
Reconstruction Hinges on Creditor Protection
However, sanctions relief and higher oil output will not translate into durable stabilization without a credible strategy for the legacy debt. Creditors retain live claims against Venezuelan oil proceeds, meaning that the NML versus Argentina trap remains open.
One notable structural parallel between the current Venezuela framework and postwar Iraq is apparent — US-mandated custody of oil revenues mirrors Iraq’s centralized, monitored control of proceeds.
Such escrow mechanisms can enhance transparency and reduce off-books creditor repayments during restructuring. Nonetheless, escrow alone does not create a true legal safe harbor. The US remains the single most decisive external actor given that much of Venezuela’s debt is governed by New York law, Ofac control of access to the financial system and Citgo assets being tied up in US courts.
Turning Venezuelan oil revenues from creditor targets into a foundation for recovery would require Washington to move beyond blocking assets and toward actively protecting them. The legal architecture for such a shift exists as a historical template. Whether Washington chooses to deploy it is the central question of Venezuela’s reconstruction moment.
Expected agreement between Iran and the United States
The United States and Iran are nearing a preliminary agreement to de-escalate tensions and open a new negotiating track. Reuters and Axios, citing informed sources, reported that the proposal includes a temporary halt by Iran to its uranium enrichment activities in exchange for a US commitment to ease some economic sanctions imposed on Tehran. The proposed understanding also stipulates the launch of a detailed negotiation phase lasting approximately 30 days, aimed at reaching a comprehensive agreement that regulates the Iranian nuclear program and outlines mechanisms for the gradual lifting of sanctions.
Al-Halbousi sets date for vote on Al-Zidi's cabinet: MPs must be present on certain days.
The Snippet from Channel 8 Iraqi News
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Financial Warning: Iraq May Be Forced to Adjust Exchange Rate
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