An economist says that the transformations that Iraq witnessed after 2003 contributed to the emergence of the "new rich".
After 2003, Iraq witnessed profound political and economic transformations that produced a new class of wealthy people, amid the expansion of reconstruction projects and government contracts and the rise of new businessmen to the forefront of economic activity.
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Economic expert Raad Al-Masoudi said that the political and economic transformations that Iraq witnessed after 2003 contributed to the emergence of what is known as the “new rich class,” amid broad changes that reshaped the economic map and opened the way for new groups to rise to the forefront of financial and investment activity.
Al-Masoudi explained that before 2003, Iraq had a limited number of well-known wealthy families who had built their economic standing over decades of work in trade, contracting and various economic sectors, and they had a clear presence in Baghdad and a number of governorates.
He added that the post-2003 period witnessed a radical transformation in the structure of the economy, with the emergence of a new segment of businessmen, some of whom were able to move from difficult living conditions to owning large fortunes, benefiting from the reconstruction projects and contracts that accompanied that period, which gradually expanded to turn into investments worth millions of dollars.
He pointed out that another group has made great fortunes through its connections with influential political entities, obtaining large contracts and projects, or through companies linked to political forces, indicating that this segment has become an influential presence in the economic scene in recent years.
Financial corruption files
Al-Masoudi pointed out that the richest groups, in his estimation, are those linked to financial corruption cases, noting that a large part of the money collected during the past years was invested or transferred outside of Iraq, which makes tracking and recovering it a complex process.
He stressed that the traditional business families that dominated the economic scene before 2003 have seen their influence decline significantly, and most of them can no longer compete with the new capital that has grown due to government contracts and major projects, especially those awarded through state institutions.
After 2003, Iraq witnessed extensive economic changes that accompanied political transformations and the restructuring of state institutions, leading to the emergence of new categories in the business and investment sector.
Conversely, corruption files, government contracts, and public funds have sparked ongoing debate over the past years, amid calls to enhance transparency, develop the oversight system, and improve the business environment, in order to ensure equal opportunities and protect the national economy from illegal practices.
another version
From the depths of chaos to the pinnacle of wealth: How did the post-2003 era redraw the map of the rich?
Baghdad Today - Baghdad
Economic expert Raad Al-Masoudi said on Sunday (June 28, 2026) that the political and economic transformations that Iraq witnessed after 2003 contributed to the emergence of what is known as the “new rich class,” amid broad changes that reshaped the economic map and opened the way for new groups to rise to the forefront of financial and investment activity.
Al-Masoudi explained in an interview with “Baghdad Today” that before 2003, Iraq had a limited number of well-known wealthy families who had built their economic standing over decades of work in trade, contracting and various economic sectors, and they had a clear presence in Baghdad and a number of governorates.
He added that the post-2003 period witnessed a radical transformation in the structure of the economy, with the emergence of a new segment of businessmen, some of whom were able to move from difficult living conditions to owning large fortunes, benefiting from the reconstruction projects and contracts that accompanied that period, which gradually expanded to turn into investments worth millions of dollars.
He pointed out that another group has made great fortunes through its connections with influential political entities, obtaining large contracts and projects, or through companies linked to political forces, indicating that this segment has become an influential presence in the economic scene in recent years.
Al-Masoudi pointed out that the richest groups, in his estimation, are those linked to financial corruption cases, noting that a large part of the money collected during the past years was invested or transferred outside of Iraq, which makes tracking and recovering it a complex process.
He stressed that the traditional business families that dominated the economic scene before 2003 have seen their influence decline significantly, and most of them can no longer compete with the new capital that has grown due to government contracts and major projects, especially those awarded through state institutions.
After 2003, Iraq witnessed extensive economic changes that accompanied political transformations and the restructuring of state institutions, leading to the emergence of new categories in the business and investment sector.
Conversely, corruption files, government contracts, and public funds have sparked ongoing debate over the past years, amid calls to enhance transparency, develop the oversight system, and improve the business environment, in order to ensure equal opportunities and protect the national economy from illegal practices.
Araghchi congratulates Ali al-Zaidi and the new Iraqi cabinet
The Iraqi and Iranian foreign ministers emphasized strengthening bilateral relations, coordinating on regional stability, and finalizing joint logistics for the upcoming funeral processions of the late Supreme Leader, Ayatollah Ali Khamenei.
Iranian Foreign Minister Abbas Araghchi Araghchi arrived in Baghdad on Sunday for high-level meetings with senior Iraqi leadership, including the President, Prime Minister, National Security Advisor, and Speaker of Parliament.
Speaking at the joint conference after their meeting, Foreign Minister Fuad Hussein stated that the relations between Iraq and Iran are “historic,” and Minister Araghchi’s current visit holds “great significance.”
Hussein noted that Iraq maintains strong relations with both the United States and Iran, emphasizing that Iraq remains firmly opposed to the war.
Hussein stated that during the meeting with Minister Araghchi, comprehensive discussions were conducted, expressing gratitude for his continuous engagement regarding the conflict and ongoing negotiations.
He underlined that Iraq faced a severe crisis due to the war and the closure of the Strait of Hormuz, which directly impacted the nation's economy.
It is crucial that the MOU between Iran and the United States is implemented, he added.
The foreign minister called on countries within the region to actively preserve regional stability.
Araghchi Commends Iraq's Stance on Regional Attacks
Meanwhile, Araghchi congratulated Ali al-Zaidi and the new Iraqi cabinet, adding that Tehran aims to expand bilateral relations across all sectors.
Araghchi emphasized that his visit occurs during a critical juncture, marking his first trip to Baghdad following the recent American and Israeli military campaign in late February.
He noted that the Iraqi government took a positive stance in denouncing the attacks on Iran.
According to the current MOU, the Strait of Hormuz is scheduled to reopen under Iranian procedures within the next 30 days, Araghchi said.
Visit Focuses on Bilateral Cooperation
The foreign minister stated that the objectives of this visit focus on bilateral relations and enhancing economic, political, and security cooperation.
He added that one of the primary aims of the visit is coordination with Iraqi authorities regarding the upcoming funeral processions of the late Supreme Leader Ayatollah Ali Khamenei.
Mass Arrests in Baghdad’s Green Zone Amid Anti-Terror and Anti-Corruption Operation
In a joint anti-terror operation, the army and other security forces in Baghdad’s Green Zone arrested a number of current and former parliamentarians, political leaders, and advisors. Arrest warrants and travel bans were also issued for others.
Tension in the Green Zone
On Sunday morning, June 28, Baghdad’s Green Zone, home to government headquarters, foreign embassies, and residences of many officials, witnessed clashes between security forces and the guards of certain officials and parliamentarians, after years of relative calm.
Armed Confrontation During Arrests
Channel8’s Baghdad correspondent reported that during attempts to arrest several officials, armed confrontations broke out. The Green Zone became tense, some individuals with arrest warrants were detained, and the operation has not yet concluded.
Strict Security Measures
Channel8 also reported that in connection with the operation, strict security measures were imposed around the Green Zone. All entrances were closed to traffic, and large numbers of security forces were deployed across Baghdad’s streets.
Seizing Weapons and Confiscating Assets of Corrupt Officials
Iraqi PM Ali Faleh al-Zaidi stated that the operation aims to seize weapons held by the state and confront corruption. In recent months, Adnan Jumaili, a former Oil Ministry official, was arrested, and billions of dinars, houses, and properties were confiscated in Baghdad, Salahaddin, and Erbil.
Largest Anti-Corruption Operation in Iraq
Today’s operation is described as the largest ever against corruption in Iraq. For the first time, high-ranking officials and leaders, previously considered untouchable, have been arrested on corruption charges.
International Assessment of Corruption in Iraq
For years, Iraq has ranked internationally among the countries with the highest levels of corruption. This operation is seen as part of judicial and governmental efforts to hold senior officials accountable.
President Al-Zaidi receives the Iranian Foreign Minister: Iraq supports dialogue and negotiations to establish stability in the region.
Prime Minister Ali Faleh al-Zaidi received Iranian Foreign Minister Abbas Araqchi and his accompanying delegation on Sunday to discuss bilateral relations and regional developments.
The meeting included a discussion of the recent agreement between the Islamic Republic of Iran and the United States of America, which led to the cessation of hostilities between the two countries, as well as international and regional efforts aimed at promoting security and stability and respecting the sovereignty and territorial integrity of states.
Al-Zaydi stressed that Iraq stands with the priority of ending wars and adopting dialogue and negotiations as a way to consolidate stability in the region, noting that this would enhance development opportunities for the peoples of the region.
For his part, Araqchi reiterated his country’s support for Iraq, stressing the importance of continuing coordination and joint cooperation and strengthening bilateral relations, and emphasizing Iran’s keenness to establish the best relations with neighboring countries and Arab countries.
Central bank reserves of foreign currency and gold have declined
Foreign reserves and gold reserves at the Central Bank of Iraq recorded a notable decline at the end of April 2026, according to the latest official data issued by the bank.
According to the data, the Central Bank's foreign reserves fell to $97.809 billion at the end of April, down from $100.341 billion in March.
The figures also showed a slight decrease in Iraq's gold reserves, reaching 33.925 trillion dinars, compared to 34.277 trillion dinars during the same period.
In the same economic context, investments also declined, reaching 92.661 trillion dinars at the end of April, down from 95.317 trillion dinars in March. Meanwhile, cash reserves in the Central Bank of Iraq's vaults decreased to 566 billion dinars, compared to 849 billion dinars in the previous month.
Central bank reserves of foreign currency and gold have declined
Foreign reserves and gold reserves at the Central Bank of Iraq recorded a notable decline at the end of April 2026, according to the latest official data issued by the bank.
According to the data, the Central Bank's foreign reserves fell to $97.809 billion at the end of April, down from $100.341 billion in March.
The figures also showed a slight decrease in Iraq's gold reserves, reaching 33.925 trillion dinars, compared to 34.277 trillion dinars during the same period.
In the same economic context, investments also declined, reaching 92.661 trillion dinars at the end of April, down from 95.317 trillion dinars in March. Meanwhile, cash reserves in the Central Bank of Iraq's vaults decreased to 566 billion dinars, compared to 849 billion dinars in the previous month.
Warnings against "diplomacy of concessions": Will the Zaidi government buy America's favor with oil and energy files?
Political analyst Adnan al-Saadi asserted on Saturday that the Prime Minister's recent directives to prioritize American companies in sovereign sectors such as oil, electricity, and telecommunications raise "legitimate questions" about their timing and implications.
Al-Saadi told Al-Maalouma, "These preemptive steps, which immediately followed the visit of US President Donald Trump's envoy to Baghdad, appear to be, in essence, an attempt to appease Washington and offer reassurances, rather than a well-considered economic choice."
He added, "The current approach reflects a clear tendency on the part of the government to implement a strategy of avoiding confrontation with Washington," as "the Prime Minister is firmly convinced that the continuation of his government and the guarantee of political stability inevitably pass through the gateway of responding to Washington's desires and priorities."
Al-Saadi described this approach as regrettable, emphasizing that "what is required is managing an equitable relationship that protects sovereignty and national interests, instead of sliding into a policy of continuous concessions."
Al-Saadi warned that "this stage could leave profound political repercussions within the Coordination Framework," noting that "the widening divergence in visions and positions regarding this direction could lead, after the end of al-Zidi's government, to a reshaping of political alliances, or even the complete disintegration of the current Coordination Framework."
A high-ranking source: Several individuals accused in corruption cases were arrested based on Al-Jumaili's confessions.
A high-level source reported on Sunday that a number of suspects in corruption cases have been arrested, based on confessions made by the Undersecretary of the Ministry of Oil, Adnan al-Jumaili.
The source told the Iraqi News Agency (INA) that “a number of individuals accused in corruption cases were arrested based on confessions made by the Deputy Minister of Oil, Adnan al-Jumaili,” noting that “the arrests included members of parliament whose immunity had been lifted and officials whose names appeared in those confessions.”
The source added that “Prime Minister Ali Falih al-Zubaidi will not hesitate to pursue those involved in corruption and the misappropriation of state funds.”
BAGHDAD — Former Prime Minister Nouri al-Maliki, head of the State of Law Coalition, endorsed the government’s anti-corruption campaign on Sunday, calling it a long-awaited step and urging authorities to continue “until the end.”
In a message to Prime Minister Ali al-Zaidi and the judiciary, Maliki congratulated them on launching the campaign to pursue what he called “the corrupt who tampered with the Iraqi people’s money.”
“We affirm our support for you in establishing justice. Continue this mission until the end, as it is a step the Iraqi people have long awaited,” he wrote.
Separately, State of Law lawmaker Othman al-Shaibani issued a statement declaring the coalition’s “full support” for the government’s measures and thanking Supreme Judicial Council President Faiq Zaidan and Zaidi.
“We announce our full support for the measures taken by the government, in cooperation with the oversight and judicial authorities, as part of the national campaign to combat corruption and pursue those involved,” the statement said, adding that the steps were necessary to protect public funds and reinforce the rule of law.
The coalition said corruption had looted state funds, derailed vital projects, drained the country’s resources and deprived citizens of services, and called on authorities to hold accountable “everyone proven to be involved, without exception or discrimination.”
It said the campaign “must continue until it fully achieves its objectives, foremost among them recovering all stolen funds to the state treasury and holding the corrupt accountable under the law, without any leniency, favoritism or political pressure.”
Maliki and Sudani both bid to lead the next government after the 2025 election before the Shia Coordination Framework settled on Zaidi as a compromise. Several current and former members of Sudani’s Reconstruction and Development Coalition were among the 15 people state media named in Sunday’s campaign.
The statements followed a sweeping operation earlier Sunday that Iraqi authorities said led to the arrest of dozens of current and former officials. State media said the arrests were based on confessions by detained Deputy Oil Minister Adnan al-Jumaili, and that the 15 names released so far were the first group in a wider investigation it said involved 47 detainees whose identities would be released later.
The operation was the first official explanation for the large-scale deployment before dawn, when armored vehicles, tanks and Counter Terrorism Service units entered the Green Zone. Residents reported several minutes of gunfire, while ambulances were seen entering residential compounds housing senior officials.
Jumaili, who served as deputy oil minister for extraction affairs, was detained earlier this month over alleged financial irregularities in the oil sector. Authorities have disclosed few details about the investigation beyond confirming he was in custody, but state media has repeatedly linked Sunday’s arrests to confessions made during his interrogation.
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Government advisor: Recovering looted funds enhances the climate of trust and transparency.
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The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed on Sunday that recovering public funds looted due to corruption enhances the climate of trust and transparency.
Saleh said in a press statement that “recovering public funds that have left the economic cycle due to corruption or misappropriation of public funds is not only important in terms of its direct financial value, but also reflects a clear governmental will to combat corruption and restore the rights of the state, which enhances the confidence of citizens and investors in national institutions.”
Recovering stolen funds
He added that “the recovered funds contribute to easing the pressures on the general budget and reducing the need for borrowing, as well as providing additional resources that can be directed towards developing infrastructure and the health, education, housing and basic services sectors.”
He pointed out that “returning these funds to the official cycle of the national economy stimulates economic activity and supports government investment spending, especially if they are employed in productive and developmental projects capable of creating job opportunities and stimulating sustainable growth.”
Saleh explained that “the state’s success in pursuing and recovering looted funds sends reassuring messages to the local and international business community, enhances the climate of trust and transparency, and encourages attracting more investments.”
He explained that “integrating these funds into national development plans and Iraq’s Vision 2050 makes them an effective tool to support economic reform and achieve sustainable development goals.”
Al-Zaydi on "Operation Green Zone": It is a first phase and we will continue to fight corruption
Prime Minister Ali Faleh al-Zaidi said that the campaign carried out by the authorities against corruption files represents a "first phase," and pledged to continue procedures to recover public funds, while the Cabinet approved the "one million residential plots" initiative and a number of financial, oil and health decisions.
The Prime Minister’s Media Office stated in a statement that Al-Zidi chaired the eighth regular session of the Council of Ministers, during which developments in the country were discussed, the files on the agenda were reviewed, and the necessary decisions were made regarding them.
At the beginning of the session, Al-Zaydi said that "what has happened in the crackdown against corruption is a first stage, and that the government will continue to fight corruption and recover public funds, and that it is tasked with protecting the interests of the Iraqi people and there will be no leniency in this responsibility."
He added that the situation "has become impossible to remain silent about," noting that concern for the plight of Iraqis compels the government to emphasize that there are strong guardians of public funds, and that it will work to ensure their proper use.
Al-Zaydi tasked the oversight bodies with receiving any indicators related to government performance or the performance of ministries, in order to uncover cases of corruption or negligence, noting that Iraq has gone through periods of wars, chaos and fighting terrorism, and that the government’s path today is based on strengthening the power of the state and its monopoly on force and weapons, and not allowing corrupt individuals to be within the body of the state with the aim of stealing public money.
In the budget file, Al-Zaydi indicated that the preparation of next year’s budget will proceed according to the “program budget” approach, explaining that it will allocate more funds to the electricity sector, to contract for 25,000 megawatts during the current year, which will make the national grid situation much better next year.
He also confirmed that there is ongoing monitoring of the million residential plots project, which he said will be completed and its results will appear as soon as possible.
In this context, the Cabinet approved the “One Million Residential Plots” initiative as a national and strategic project to provide residential land with the necessary infrastructure in all governorates, except for the Kurdistan Region, in preparation for distributing it among eligible citizens to provide them with decent housing.
The Council decided to form the Supreme Committee for the Initiative, chaired by the Prime Minister and with the membership of a number of ministers and heads of relevant bodies and authorities, to take over the general policy for implementing the initiative and approving the strategic work plan and timetable, according to axes that include determining the eligibility controls and the database of those entitled, inventorying and providing lands, preparing the economic model and financing, and determining the legal frameworks for implementing the initiative.
As part of the financial reform, the Council approved the recommendation of the Ministerial Council for the Economy regarding tax accounting, which includes subjecting foreign oil companies operating in Iraq, including contractors, to the Income Tax Law No. 19 of 2010, at a fixed rate of 35 percent of their total income in Iraq.
According to the decision, the General Authority for Taxes shall provide the Ministry of Oil with detailed lists of foreign companies, their branches, offices, and contractors who have outstanding income taxes, additional amounts, or unpaid tax obligations, in order to collect them.
The council also decided to obligate private universities, colleges and institutes subject to tax accounting to pay the original tax due on them for income tax and direct deduction, with a 100 percent exemption from fines and additional amounts if the original tax is paid and the tax accounting is completed within four working months from the date of issuance of the decision.
The exemption will be 50 percent for private educational institutions that pay the original tax and complete the accounting procedures within the following four months, provided that no taxpayer who does not complete the procedures and payment within the specified periods will benefit from the exemption, with the application of fines and applicable legal procedures against him.
In the energy sector, the Cabinet excluded the preliminary principles agreement signed with ExxonMobil, and the contracts and agreements stemming from it, from Cabinet Resolution 48 of 2018, while the Ministry of Oil continues to follow up on the arbitration case pending before the international judiciary to ensure the financial rights of the Iraqi state independently of the course of implementing the agreement.
The Council also approved the recommendation of the Central Review and Approval Committee regarding the referral of the Basra Oil Company to Halliburton Iraq Branch for the Integrated Field Management and Engineering, Procurement and Construction Management contracts, for a period of five years, extendable for an optional three years, with payments to be made according to the work actually completed.
The council also decided to refer the draft contract for the development of the Hamrin field to HKN Energy, and to begin petroleum operations in accordance with the proper procedures, as confirmed by the Ministry of Oil.
Regarding environmental matters, the Cabinet authorized the Ministry of Environment, with its approval, to propose exemptions for certain facilities from the environmental regulations for establishing projects and monitoring the safety of their implementation No. 3 of 2011, in accordance with standards and criteria adopted by the Ministry.
In the health sector, the council voted to allocate 30 billion dinars to the Ministry of Health to finance drug contracts.
He also approved the creation of a component within the Ministry of Planning for the school construction project for contracts approved by the General Secretariat of the Council of Ministers, and the disbursement of the approved entitlements from the surplus amount in the project to build 1,000 schools, after deducting 15 percent of the amount and depositing it into a special account with the Ministry of Finance.
From Baghdad to Ankara: Money laundering networks for corrupt officials in Iraq exposed
A Syrian source revealed on Sunday the existence of money smuggling networks operating between Iraq, Syria, and Turkey.
The source told the Information Agency: "There is a money smuggling network managed by Syrian figures. Smuggled funds are transferred to certain Iraqi political figures accused of corruption, including individuals close to Sarmad al-Khanjar, son of the head of the Sovereignty Alliance, and Mohammed al-Halbousi, head of the Progress Party, as well as other figures associated with Muthanna al-Samarrai." The source
added that "Syrian figures close to Turkish-backed factions, such as the former Hamza Division (which was later integrated into the 76th Division, a unit of the de facto government's Ministry of Defense), are also involved." The source explained that "this division oversees the smuggling of funds from Iraq to Syria, and then their transfer to Turkey."
He confirmed that "the mastermind behind this network is a Syrian man residing in the Aleppo countryside and close to Turkey, named Abdul Rahman al-Mawali," explaining that "this network works to smuggle millions of dollars for corrupt figures linked to corruption cases in Iraq, depositing them in Turkish banks under the names of Syrians."
Mounting US pressure... Will the Zaidi government raise the "white flag" after Park's visit?
Former MP, Fadel Al-Fatlawi, confirmed today, Sunday, that the recent visit of the US President’s envoy, Tom Barak, to Baghdad and Erbil carries clear indications of Washington’s efforts to reshape the regional landscape in the Middle East in a way that serves its interests and strategy.
Al-Fatlawi told Al-Maalouma that "this diplomatic tour comes in the context of the ongoing American attempts to rearrange the cards in the region," noting that it "carries direct messages to the Iraqi government regarding highly sensitive political and security files."
He added that “the current American moves are focused on two main axes,” the first of which is related to “resolving the government file by exerting political pressure to end the stalled cabinet formation process in accordance with a vision that aligns with American interests and desires,” while the second is related to “pressuring Baghdad on the issue of ‘restricting weapons’ and controlling the security arena in its favor.”
Al-Fatlawi pointed out that "the United States is seeking, through these moves, to impose alternative policies to compensate for its political losses in the region, especially after the decline of its previous military options, and in contrast, the steadfastness of the Islamic Republic of Iran and its achievement of clear political superiority."
The former MP concluded his remarks by noting that "the recent American diplomatic move represents an attempt to impose a new political reality, ensuring that Washington maintains leverage and remains an influential player in both the Iraqi and regional arenas."
Nechirvan Barzani discusses strengthening relations and regional developments with a Canadian delegation
On Sunday, Kurdistan Region President Nechirvan Barzani discussed bilateral relations and developments in the region with a delegation from the Canadian-Kurdish Friendship Group in the Canadian Parliament.
A presidential statement received by Shafaq News Agency stated that the Canadian delegation was headed by Ahmed Hussen, Chairman of the Foreign Affairs Committee in Parliament, and included Ziad Abu Latif, in the presence of a number of members of the Federation of Kurdish Communities in Canada.
The statement added that the meeting discussed ways to strengthen relations between the Kurdistan Region, Iraq and Canada, while emphasizing the role played by the Kurdish community in consolidating cooperation between the two sides.
The members of the Canadian delegation praised the state of peaceful coexistence among the components of the Kurdistan Region, stressing the importance of maintaining security and stability, and Canada’s support for the people of Kurdistan.
The statement indicated that the meeting also addressed the latest political and security developments in the region, and the two sides exchanged views on regional developments.
Washington, Trump faces several contentious issues – Al-Zaidi
Iraqi Prime Minister Ali al-Zaidi assumed office, attempting to find solutions to thorny issues, most notably the proliferation of weapons and the country's reliance on a rentier economy to finance budgets whose funds are often siphoned off through politically sanctioned corruption deals. Despite the short time since al-Zaidi secured parliamentary approval and formed his first cabinet (14 ministers), he has demonstrated a serious commitment to addressing two sensitive issues that have long plagued Iraq: weapons and corruption. Al-Zaidi aims to achieve tangible results on these two fronts, in addition to completing his cabinet and appointing the remaining nine ministers, before a planned visit to the United States in mid-July to meet with President Donald Trump at the White House.
The visit, the first official foreign trip by the Prime Minister, embodies the government's direction and ministerial program through two main pillars. The first is to move towards building a productive economic partnership that serves the interests of the Iraqi people and supports development priorities. The second pillar focuses on deepening the strategic relationship between Iraq and the United States in a way that benefits mutual interests, enhances trade and investment, and supports economic growth in Iraq. The visit will strengthen opportunities for cooperation between the Iraqi and American private sectors, and this coordination will translate into positive opportunities that support the Iraqi economy.
The Iraqi government is pursuing a policy of openness, cooperation, and building balanced partnerships with various major economies around the world, and it aspires for Iraq to play a distinguished role in trade and development in the Middle East. We approach the world with confidence, given that Iraq possesses one of the largest proven oil reserves globally and enjoys promising resources and potential in the mining sector, in addition to significant opportunities in developing manufacturing industries.
The Al-Zaidi government is determined to protect public funds by all available means, and efforts to combat and fight corruption will not cease, because this confrontation is in the best interest of the Iraqi people. The Iraqi people, the future of their wealth, social welfare, and the process of building a state with strong institutions that uphold and are based on the rule of law—the essence of this confrontation against financial and administrative corruption represents a moral and national commitment. It embodies the governmental responsibility and its constitutional duty, which undoubtedly dictates that we stand and defend the interests of the Iraqi people and their economic future. There is no future on the horizon unless we rid ourselves of the scourge of corruption. This is what the Prime Minister and his government unequivocally embrace, because public funds have a sanctity that does not fade with time, nor is it erased from the memory of a patriotic action confident in its goals and principles.
The season for hunting down the “corruption whales”: 50 names and $350 billion! – Tens of billions in the grip of the Integrity Commission, and the Commission speaks of a deterrent effect. The disclosure of huge sums of money and assets following the arrest of a number of individuals accused in corruption cases, including Deputy Oil Minister Adnan al-Jumaili, has brought the corruption file to the forefront of public attention. There are widespread demands to go beyond pursuing minor suspects and instead hold accountable those known as the “corruption whales” involved in major cases and recover the looted funds. Two senior officials in the Ministries of Oil and Electricity have confessed to embezzling millions of US dollars and billions of Iraqi dinars. Furthermore, they and those behind them (now referred to as the “corruption whales”) have carried out the largest money laundering campaign. Social media and news agencies have begun circulating stories about how the looted funds were hidden, whether in fortified houses.
The government has a clear vision and priority in the field of economic reform and combating corruption, alongside its other constitutional and legal responsibilities. It also adopts a comprehensive approach to protecting and revitalizing the economy. Iraq, and alleviating the burdens resulting from the rentier nature of the economy,” considering that “establishing a comprehensive vision of economic challenges and their concepts will contribute to enabling the government to manage all its files in a balanced and harmonious manner, thus creating a suitable environment for achieving the desired success. The government is proceeding with strengthening tax and customs mechanisms, and the fair targeting of collecting revenues from border crossings, or public service fees, all of which are legal tributaries that support the state budget. Likewise, tax accounting, which represents a gateway to paying people's rights and protecting public funds, will be a contributing factor in expanding the activity of the private sector. Prime Minister Ali Faleh al-Zaidi also rejected the budget in its current form based on allocations, expenditure resources, payments, and inputs, because it contains a systemic flaw. He pointed out that “Iraq today needs a ‘program budget,’ meaning that we define the goal or program first, and that we stipulate that the identified program or the program on which funding is chosen must be within the path of reform, and that it must have clear returns in the short or medium term. He aspires to a budget whose paths lead to creating development opportunities and raising the levels of added value in the economic process. Therefore, the lesson is not in presenting drafts, schedules of expenditures, allocations, and spending categories, but rather in directing funding towards productive programs that carry solutions that touch the core of the need for development.”
Prime Minister Ali al-Zaidi is expected to arrive in Washington in mid-July, after he has completed a large part of the process of removing figures and leaders associated with factions from sensitive positions within the state. Well-informed political sources say these measures represent one pillar of a three-pronged plan
agreed upon with the United States. This plan is based on parallel tracks, including on-the-ground measures related to weapons, cutting off funding sources, and removing influential figures from positions of power and influence.
In recent weeks, al-Zaidi's opponents within the Shia political forces have begun to view his actions as more than just an administrative or security reform campaign; they see it as a project that could lead to what they describe as a "cold coup" against the power structure established after 2003.
The Prime Minister is working within a tight timeframe to implement what has become known in political circles as the "June Agreement," an understanding that crystallized during the visit of US President Donald Trump's envoy, Tom Barrack, to Baghdad. According to sources close to the government, al-Zaidi has opened three parallel fronts to achieve this goal. The first involves removing influential figures from key positions within the state, a front that has seen tangible progress recently. The second focuses on pursuing corruption cases and dismantling economic networks believed to have provided funding to political forces and armed factions in recent years. The third, and most sensitive, front concerns the issue of weapons and their monopoly by the state, a file that continues to move at a slower pace than the others.
Sources say the government has achieved relative success in removing senior officials whose dismissal is believed to be related to their ties with factions, their proximity to Iranian influence, or their failure to curb the expansion of this influence within state institutions. Within a few weeks, the Prime Minister managed to make changes in some of the most sensitive positions in the country, including the National Security Service and the National Security Advisory. Al-Zaidi also succeeded in making an important change within the Central Bank, which is seen as one of the main pillars of the financial and economic reform plan linked to the Iraqi-American understandings. Political circles believe that these measures will have repercussions on complex financial and economic networks whose effects extend to political forces and armed factions.
Al-Zaidi's plan aims to achieve two goals simultaneously: to achieve economic reform on the one hand, and to strike at the networks of interests that link some influential figures to powerful parties and factions on the other. The Prime Minister views corruption as the most serious threat facing the country and the political system, indicating that all previous contracts will be subject to auditing and review, and that several projects have been halted despite some of them having received more than 50 percent of the funding.
Al-Zaidi's success hinges on his ability to build an "independent, civilian, national government." Otherwise, the alternatives will be harsh, ranging from early political failure to more complex scenarios, such as extending the caretaker government or holding early elections under indirect international supervision—a move akin to "re-internationalizing" the Iraqi political process. Washington seeks to preserve Iraq's sovereignty, bolster security against terrorism, and build a prosperous future that tangibly benefits both Iraqis and Americans. This stance comes amidst a notable escalation in the sanctions and prosecutions recently announced by Washington, targeting several armed leaders within Iraq, including figures belonging to opposing political camps within the "coordination framework."
- Prime Minister Ali al-Zaidi is moving quickly on major reforms shortly after forming his government (only 14 ministers so far, 9 positions still vacant).
- His top priorities are combating corruption and reducing the proliferation of weapons outside state control.
- He plans a major visit to Washington in mid-July to meet President Donald Trump — his first official foreign trip.
- The visit aims to build a new strategic & economic partnership with the US, focused on trade, investment, and moving away from a purely rentier (oil-dependent) economy.
- Zaidi is actively removing influential figures linked to factions from key positions (described by opponents as a potential “cold coup”).
- There is a strong push against “corruption whales” — large-scale corruption cases involving tens of billions of dollars. The Integrity Commission is actively pursuing high-level arrests.
- The government wants to shift to a program-based budget focused on real development and productive spending rather than just distributing oil money.
- Zaidi is working on three parallel tracks: removing faction-linked officials, fighting corruption networks, and gradually bringing weapons under state monopoly.
The banker of Baghdad: How Tom Barrack plans to starve Iran’s militia machine
Washington has found a weapon more precise than any cruise missile — the routing number of the Federal Reserve Bank of New York
![Ambassador to the Republic of Turkiye and Special Envoy for Syria, U.S. Thomas J. Barrack attends ADF2026 Talks within Antalya Diplomacy Forum, held under the theme of 'Mapping Tomorrow, Managing Uncertainties' in Antalya, Turkiye on April 17, 2026. [Utku Uçrak - Anadolu Agency]](https://ci3.googleusercontent.com/meips/ADKq_Na61acEBsApmeQ8vPKi2974h-vvBCBwO1egq3wtmXmOfJYjAv4umA0JjKdq8c7VK082fFWtlrZLj_ODzrNk-NdclmOGqncghbaamN-X3_URaLA5lS9sJ35zXGuikMaDzAXh2zLU8uWAqRHxIDz0JZ4EtfsIihgfoo_Rbx32_Mh6ngQDWbewZ614DlnDGUifMQ-nAHWyyc13BSKO2TnYamSSC-aO46pmP1X0P8YA8mPM=s0-d-e1-ft#https://i0.wp.com/www.middleeastmonitor.com/wp-content/uploads/2026/04/AA-20260417-41129680-41129658-ANTALYA_DIPLOMACY_FORUM_2026.jpg?fit=920%2C613&ssl=1)
When President Donald Trump announced on 31 May that Tom Barrack would serve simultaneously as US Ambassador to Ankara, Special Presidential Envoy to Syria, and now Special Presidential Envoy to Iraq, the diplomatic community in Baghdad greeted the news with the mild interest one accords a routine reshuffling. They were wrong. Barrack is not arriving in the Iraqi capital with a briefing book and a handshake. He is arriving with a vault key — and the vault holds Baghdad’s oxygen.
Since 2003, Iraq’s hydrocarbon revenues have been deposited into a dedicated account at the Federal Reserve Bank of New York. When Baghdad needs hard currency, the Treasury arranges for physical dollar banknotes — sometimes as much as $13 billion in a single year — to be flown on cargo planes from New Jersey to the Central Bank of Iraq. It is an arrangement born of post-invasion necessity, designed to shield Iraq’s new government from Saddam-era creditors and reparation claims. It has since become something else entirely: the master switch of Iraqi political economy, controlled from lower Manhattan.
In April, the Trump administration quietly demonstrated just how absolute that control is. The Treasury blocked a cargo-plane delivery of nearly $500 million in US banknotes — proceeds from Iraqi oil sales — and simultaneously suspended security cooperation programs with the Iraqi military. A senior Kurdish official, speaking to Fox News, offered the most frank assessment heard in months: “The dollar pause is the nuclear option in the Treasury Department’s arsenal, and the Americans have always been reluctant to leverage it.” Barrack’s appointment signals that the reluctance is over.
“The balance of power around which the United States operates works best when allies become more self-reliant and share the burden — always within a framework that preserves American influence, stability, and alignment with core US interests.” — Tom Barrack, Special Presidential Envoy for Syria and Iraq, June 2026
To understand what Barrack is up against, one must first understand the architecture of Iran’s position in Iraq, because it is not a foreign occupation in any conventional sense. It is an inside job. The Popular Mobilization Forces (PMF), an umbrella of some 238,000 fighters drawing $3.6 billion in annual state funding, was enshrined into Iraqi law in 2016 under Law No. 40. Its most powerful components — Kataib Hezbollah, Asa’ib Ahl al-Haq, Harakat Hezbollah al-Nujaba — were IRGC-Quds Force proxy formations long before they were absorbed into the Iraqi state payroll. In Tehran’s strategic calculus, the PMF is the Hezbollah model, replicated on a state budget.
“Tom Barrack, who has done an outstanding job, will advance our strategic cooperation with the Governments of Syria and Iraq. Our relationship with them continues to grow!” — President Donald J. Trump, Truth Social, 31 May, 2026
The money trail, painstakingly documented by the Foundation for Defense of Democracies, is darning: the state-owned Rafidain Bank, a downstream distributor of oil revenues held at the New York Fed, was disbursing dollar-converted wages directly to PMF militia fighters until mid-2025. When US Treasury pressure forced Rafidain from processing those payrolls, the PMF simply migrated its salary mechanism to a smaller state-owned lender, Al-Nahrain Islamic Bank — shifting the problem rather than solving it. Worse, multiple Treasury sanctions between 2024 and 2026 traced diverted Iraqi dollar-auction proceeds through fronts linked to IRGC financiers and networks procuring components for Shahed drones and Iranian ballistic missiles. Washington, in the most literal sense, has been subsidizing its own adversaries.
The war on Iran: Through the lenses of pragmatism and realpolitik
In Tehran, IRGC commanders have understood precisely what is at stake. According to reporting by Critical Threats, senior IRGC officials briefed President Masoud Pezeshkian that US and Israeli military pressure on Iran had paradoxically unified the population behind the regime, framing the entire confrontation, Iraq included, as a civilizational struggle rather than a policy dispute. That framing serves a purpose: it raises the psychological cost of compliance for PMF factions, as it can be recast as ideological betrayal. In this sense, the IRGC’s most effective weapon in Iraq is not a drone — it is a narrative.
“The United States provides Iraq with more than counterterrorism aid annually, yet instead of using these funds to constrain Iran-backed terrorist organizations, the arrangement has at times channelled resources toward the very groups Washington designates as threats. The choice for Baghdad is simple: reclaim sovereignty from IRGC influence, or lose the financial and military support that sustains the current system.” — Washington Institute for Near East Policy, April 2026
Barrack is no career diplomat, and that is almost certainly the point. He is a private equity dealmaker who described Iraq, in an unguarded moment, as a “failed political experiment” — and Lebanon as “a farce.” Translated into policy, those are not insults but diagnostics: Washington no longer views Iraq as a political negotiating partner to be flattered, but as a malfunctioning security file to be restructured. His instrument of choice is the one he knows best — leverage. And the leverage is staggering. Oil export revenues fund an estimated 90 percent of the Iraqi government budget. A prolonged dollar shortage would not merely inconvenience Baghdad’s ministries; it would ignite inflation, destabilize the Iraqi dinar, and hollow out the very state salaries that keep the PMF nominally loyal to Baghdad rather than exclusively to Tehran.
There are early signs the strategy is drawing blood — or at least a strategic retreat. In late May and early June 2026, Muqtada al-Sadr dissolved his Saraya al-Salam militia, and Asa’ib Ahl al-Haq and Kataib Imam Ali announced they would hand their weapons over to state control. Barrack’s response on X was carefully calibrated — congratulatory but conditional. He told Iraqi Prime Minister Ali Falih al-Zaidi that the move represents the “nascent foundation for renewed Iraqi self-governance” — and then added the pointed rider: “Prime Minister Al Zaidi’s confidence is well-placed, for this marks only the beginning.” The subtext was unmistakable: the dollar tap remains in American hands.
But the hardest cases remain unmoved. Kataib Hezbollah and Harakat Hezbollah al-Nujaba — the formations most directly under IRGC command — have declined to disarm. The Middle East Forum has warned that what appears to be a militia shake-up may in fact be an Iranian adaptation: superficial compliance by manageable factions, preservation of the core command-and-control network. On 17 April, the Treasury designated seven senior commanders across four Iran-backed groups for attacks on US personnel — a signal that financial and kinetic pressure will run in parallel. The US conducted 138 strikes inside Iraq in April alone, killing 73 PMF members.
Tom Barrack enters Iraq carrying three portfolios — Ankara, Damascus, Baghdad — and one overarching thesis: that the architecture of Iranian influence in Iraq runs on American dollars, and that architecture can be disassembled the same way it was built, through the banking system. Lebanon took decades and a catastrophic financial collapse before Hezbollah’s model showed its limits. Iraq, with its oil revenues hostage to a New York account number, may face a compressed timeline. The barista who once claimed he was merely “bringing temperatures down and logic back together” in Kurdistan oil negotiations has a different mandate now. He holds the purse. And in Baghdad, the purse is the power.
Washington and Tehran agree to halt strikes and meet this week
The United States and Iran have agreed to halt military strikes and meet this week.
Axios quoted US officials as saying, "Washington and Tehran have agreed to halt military strikes and meet this week."
They added, "We have decided to cease all hostilities with Iran," confirming that "Washington and Tehran will meet next Tuesday in Doha to resolve the dispute over the Strait of Hormuz."
A US official announced on Sunday that technical talks between the United States and Iran are still scheduled, after the Wall Street Journal reported that talks between Washington and Tehran, which were supposed to resume this week, had been suspended due to "renewed fighting between the two sides" in recent days.
Israeli strikes hit four districts in Southern Lebanon
Israeli forces carried out fresh strikes and military operations across southern Lebanon on Sunday, according to local media, despite a US-mediated framework agreement outlining a phased Israeli withdrawal from the area.
In the Nabatiyeh district, an Israeli drone dropped a sound bomb over Nabatiyeh al-Fawqa after striking the town. Bint Jbeil witnessed a drone strike on an open area in Froun, which Mayor Hassan Bazzi described as the first ceasefire violation inside the town since the agreement took effect, saying it endangered civilians and spread fear among residents. Another drone dropped two sound bombs near a house in Baraachit, while a sound bomb in Burj Qallawiyeh wounded two people, according to Lebanon's Health Ministry.
Warplanes targeted the outskirts of Deir Seryan and Taybeh in Marjaayoun, while troops in Khiam detonated explosives, burned homes, and advanced with military vehicles inside the town.
Israeli forces also fired cluster munitions toward the outskirts of Shebaa and Shwaya in Hasbaya, as reconnaissance aircraft flew over Tyre and nearby areas, warplanes conducted low-altitude flights and a simulated raid over the Hermel highlands, and a drone was reported over Beirut's southern suburbs.
The Health Ministry said the cumulative toll from the Israeli offensive between March 2 and June 28 had reached 4,247 dead and 12,195 wounded, including women and children.
The framework agreement, signed in Washington on Friday after a fifth round of negotiations, sets out a phased Israeli withdrawal from southern Lebanon. It begins with two pilot zones to be transferred to the Lebanese army after armed groups are disarmed and their infrastructure dismantled. Lebanon's two main Shia parties, Hezbollah and the Amal Movement, along with other groups and parliamentary blocs, rejected the trilateral framework, describing it as unbalanced and a threat to Lebanese sovereignty.
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