After the end of the war, the Iraqi economy is on the path to recovery.
- The Iraqi government has reaffirmed its commitment to the stability of the exchange rate, in a move that should reassure markets against the backdrop of the US-Israeli war on Iran, the closure of the Strait of Hormuz, and the disruption of oil exports.
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The Iraqi government joined the Central Bank in reassuring markets about the dinar's exchange rate, with its spokesman Haider al-Aboudi stressing that there was no intention to print currency or adjust the exchange rate to compensate for lost liquidity amid the repercussions of the Iran war.
Al -Aboudi said in a television interview on Tuesday that “there is no intention to print currency or raise the dollar exchange rate to compensate for the lost liquidity,” considering that such options “do not serve the citizen and constitute a burden on him.”
The Central Bank of Iraq denied last week its intention to amend the dinar's exchange rate, warning against the circulation of misleading news, after a forged document was spread claiming there was a request to change the rate to 1,600 dinars per dollar.
Pressure on the dinar
However, these assurances did not completely stop the pressure on the dinar in the parallel market, where the price of the dollar rose from about 1449 dinars ten days ago to between 1550 and 1560 dinars, compared to the official price of 1310 dinars.
Reducing dependence on oil in the budget
In parallel, Al-Aboudi said that the government is working to reduce the country’s budget dependence on oil and enhance non-oil revenues, noting that Prime Minister Ali Al-Zaidi heads a specialized committee that aims to reduce the budget’s dependence on oil to 45% instead of 90% during the next ten years.
Al-Aboudi did not explain the mechanism for achieving this goal, but he indicated that the committee will work to maximize revenues from border crossings and customs and activate collection, at a time when the government needs to secure at least 10 trillion dinars per month to cover salaries and public expenses.
He added that “this figure requires revenue engineering in light of the current crisis, which is not easy at all.”
These moves come as Iraq faces exceptional financial pressures since the closure of the Strait of Hormuz, given its almost complete dependence on oil to finance its budget and exports.
The financial advisor to the Iraqi cabinet, Mazhar Muhammad Salih, said last week that Baghdad has not yet decided to request a loan from the International Monetary Fund, but it will need to decide its position by July if estimates indicate that the Iran war will continue beyond October.
Saleh added that Iraq is “almost financially settled until next October,” but noted that there are intensive consultations with the IMF about the nature of possible assistance.
Jihad Azour, director of the Middle East and Central Asia Department at the International Monetary Fund, said in April that Iraq had few options other than reducing spending and temporarily resorting to foreign exchange reserves, at a time when Bloomberg Economics estimated that Iraq needed about $75 billion to maintain the fixed exchange rate of the dinar against the dollar, out of foreign reserves that amounted to $100 billion on the eve of the war.
The Washington-Tehran agreement eases the pressure
With a temporary agreement reached between Washington and Tehran that would reopen the Strait of Hormuz, pressure on the Iraqi economy is likely to ease.
The economy needs two months to recover.
Zafer Mahdi Abdullah, head of the Iraqi External Development Fund and Iraq’s governor at the OPEC Fund for International Development, predicted that the Iraqi economy would recover within two months from the impact of the Strait crisis, with the gradual return of oil flow.
He added: “After the Strait of Hormuz was opened and Iraqi oil flowed through it, the economic situation began to recover gradually. It certainly needs time, but it will not take more than a month or two.”
Iraq asks the US to increase training for its military forces in three areas.
The Ministry of Defense stated in a statement received by Al-Furat News that the meeting, which was held at the headquarters of the Training Department, addressed a number of issues related to developing training curricula in military institutions in line with the requirements of the current stage.
The Deputy Chief of Staff of the Army stressed the importance of increasing the number of seats in foreign courses allocated to the Iraqi side, and intensifying specialized training on modern weapons, especially aircraft and tanks, in addition to developing the skills of special forces.
He pointed to the importance of establishing the principle of joint work and enhancing cooperation in training fields, praising the level of cooperation with the American company (CK), which specializes in manufacturing and developing military training and simulation simulator systems.
For his part, the representative of the US military attaché expressed his country’s readiness to continue providing logistical support in accordance with the memorandum of understanding concluded with the Iraqi Ministry of Defense.
Following the selection of the prime minister, American interventions are writing a new chapter of dominance over Iraqi decision-making.
A new chapter is being written in the saga of American intervention in Iraq through its proxies and control over political, security, and financial affairs, amidst the acquiescence of some political blocs who believe that implementing America's agendas guarantees their interests and personal gains. Conversely, voices are rising in opposition to this intervention, which has led to the erosion of national sovereignty and deprived the country of financial independence.
Currently, the country is in the process of forming a government following the appointment of Ali al-Zaidi as Prime Minister. Parliament failed in its first session to approve nine ministerial nominees, and observers asserted that this failure stems from American interference in this process. The
American website "Al-Monitor" announced the nomination of Peter Shea to temporarily head the US mission in Baghdad, replacing Joshua Harris. The same website warned of the danger of the envoy's interference in the remaining ministries, particularly those related to security. Regarding this issue, former MP Razzaq al-Haidari considered the US administration's appointment of a candidate to temporarily head the US mission in Baghdad an intervention in Iraqi affairs, emphasizing that this step represents a continuation of Washington's dominance over the country. Al-Haidari told Al-Maalouma News Agency that "the appointment of a new head of the US mission in Iraq is part of the continued American hegemony over the country," warning of "the danger of interference in the government formation process." He added that "Washington, through its new envoy, will pressure Prime Minister Ali Mohsen al-Ahmad to choose ministers who will implement its agenda, especially in the security ministries, at a time when Iraq is suffering from security threats represented by terrorism, the dangerous security developments in Syria, and the increasing regional tensions in the Middle East." Al-Haidari called on "the Iraqi Prime Minister not to succumb to external pressures and to keep them out of the ministerial appointments, and to bring forward candidates who will work on developing national plans that serve the country and not serve foreign interests." Protecting National Decision- Making: MP Faleh al-Khazali warned of the danger of foreign interference in Iraqi affairs, stressing the need for national political decisions to remain independent and free from any external dictates. Al-Khazali told Al-Maalouma that "Iraqi political decisions must be made within Iraqi constitutional institutions and must not be subject to any external pressures or dictates." He added that "preserving national sovereignty requires strengthening the independence of political, economic, and security decision-making, in line with Iraq's supreme interests." He pointed out that "national political forces and the government bear the responsibility of protecting national decision-making from any interference that might affect the course of the state and its institutions," emphasizing that "Iraq possesses the capabilities and resources to make its decisions independently, in a way that achieves stability and safeguards the interests of the Iraqi people." The issue of foreign interference in the government formation process remains a true test for Prime Minister Ali al-Zubaidi in preventing such interference and selecting suitable figures who align with national interests, not foreign ones.
Iraq: Domestic debt rises to 95.7 trillion dinars, while external debt declines.
Data from the Central Bank, released on Wednesday, showed that domestic public debt rose to 95.7 trillion dinars by the end of April 2026, while external debt saw a decline on an annual basis.
According to the bank's data, domestic public debt rose to 95.679 trillion dinars by the end of April of this year, compared to 90.515 trillion dinars recorded at the end of 2025, an increase of 5.164 trillion dinars, and about 12.629 trillion dinars compared to 2024, when it reached 83.050 trillion dinars.
According to the data, this increase was driven by the increase in the total liabilities of the Ministry of Finance to the Central Bank of Iraq to 55.699 trillion dinars as of April 2026, compared to 45.699 trillion dinars in 2025.
In contrast, loans decreased to 20.270 trillion dinars, after having been 22.899 trillion dinars, and the value of bonds decreased to 10.868 trillion dinars, compared to 13.075 trillion dinars, while treasury bills remained stable at 8.842 trillion dinars.
Iraq’s external debt reached $54.101 billion in 2025, down from $54.601 billion in 2024 and $56.207 billion in 2023, a total decrease of $2.106 billion over two years, according to data from the Central Bank of Iraq.
The data indicates that domestic debt continued to rise during the first four months of 2026, while external debt continued its downward trend compared to previous years.
International oil companies resume operations in the Kurdistan Region's oil fields.
The Kurdistan Regional Government announced on Wednesday that a number of international oil companies have resumed their production operations in the region's oil fields according to a specific timetable, after completing the rehabilitation work on sites that were damaged as a result of the recent attacks that targeted oil facilities in the region.
Government spokesman Peshwa Hawrami said in a statement received by Shafaq News Agency that HKN has resumed production at a rate of 7,000 barrels per day, and will fully resume production at the Atrush field next Sunday.
Horami added that Gulf Keystone started production operations in the Sheikhan field on Wednesday, while DNO is scheduled to resume production in the Tawke and Fishkhabur fields next Friday.
He noted that Hunt Oil will join the companies resuming production on July 8, as part of a phased plan to restart the damaged oil fields.
The spokesman for the regional government explained that a number of oil companies suffered serious damage as a result of the attacks that targeted oil fields during the past period, which necessitated the temporary suspension of some production operations to carry out maintenance and rehabilitation work.
Horami stressed that the renovation and rehabilitation work carried out at the affected sites was necessary to ensure the safe resumption and continuation of production, and to maintain the stability of oil operations in the region.
The Interior Minister of the Kurdistan Region, Reber Ahmed, confirmed last Saturday that the Federal Prime Minister, Ali al-Zaidi, is "very serious" about the issue of the work of oil companies, indicating that the region will provide its support in this matter in coordination with the federal government.
Last week, a high-level Iraqi military delegation, headed by Chief of Staff of the Army, Lieutenant General Abdul Amir Rashid Yarallah, visited Erbil, as part of moves aimed at strengthening security and protecting vital facilities in the Kurdistan Region, particularly oil fields.
On June 6, the Ministry of Natural Resources in the Kurdistan Region announced that an agreement had been reached with the federal government to resume exporting the region's oil through the Turkish port of Ceyhan.
It is worth noting that the Iraqi Prime Minister, Ali Faleh al-Zaidi, directed the resumption of work by oil companies in Kurdistan starting from June 4th, during his reception of a high-level delegation from Kurdistan.
Kurdistan Region's oil exports have fallen from 200,000 barrels to 20,000 barrels due to attacks by Iraqi factions and Iranian forces, which have forced companies to halt their operations.
Al-Zaydi: American companies have priority in investing in Iraq
Prime Minister Ali Faleh al-Zaidi affirmed on Wednesday (June 24, 2026) that American companies will have "top priority" in investment opportunities within Iraq, indicating a government direction to strengthen the economic partnership with the United States during the next stage.
Al-Zaydi said, during an interview with journalist Hadley Gamble, which was followed by "Baghdad Today", that "American companies will be given the highest priority for investment in Iraq."
He added that "500,000 barrels per day of Iraqi oil will be allocated to contribute to replenishing the US Strategic Petroleum Reserve (SPR)."
He added that "Iraq will consider suspending its membership in (OPEC) if it is prevented from producing in proportion to its production capabilities," explaining that "we want (OPEC) to increase our oil production in proportion to Iraq's oil capabilities and population size."
Al-Zaydi indicated that "the relationship with the United States will transform from a military one to an economic partnership," emphasizing that "most factions have already begun handing over their weapons to the state."
He explained that "after the withdrawal of all American forces, there will be no justification or need for any resistance in Iraq," adding that "combating corruption is at the top of my priorities, and I have already begun implementing measures in every ministry and department to eliminate the sources of corruption."
Iraqi-American relations have recently witnessed an increasing trend towards expanding economic and investment cooperation, coinciding with Baghdad's efforts to attract international companies to participate in energy and infrastructure projects.
The Ministry of Finance and the Adam Smith International Foundation are exploring mechanisms to support the transition to program and performance budgeting.
On Wednesday (June 24, 2026), the Ministry of Finance witnessed a meeting chaired by the Undersecretary of the Ministry of Finance, Ali Karim, with representatives of the Adam Smith International Consulting Foundation, in the presence of the Director General of the Budget Department, Ms. Milad Ziad Abdul-Mawla, to discuss mechanisms of cooperation in the field of training and qualifying Iraqi financial personnel and developing their technical capabilities in preparation for the new stage.
A statement from the ministry, received by "Baghdad Today," indicated that the undersecretary of the ministry affirmed that the transition to a program and performance budget is not limited to changing the method of preparing the budget only, but represents an institutional transformation in the management of public spending, based on linking the allocated funds to government objectives and the results achieved on the ground, which enhances transparency and accountability and raises the efficiency of the use of financial resources.
He explained that the ministry is working to implement this transformation gradually by building institutional capacities and preparing the necessary technical guides and application models, in preparation for expanding the scope of application according to the levels of readiness within government institutions.
For its part, the Budget Department expressed its readiness to participate in the proposed training and qualification programs, stressing that developing the skills of financial staff is a fundamental pillar for the success of the financial reform project and improving the management of public resources.
Program budgeting aims to reshape public spending amidst implementation and readiness challenges.
Program budgeting represents one of the most prominent transformations that the government seeks to adopt in managing public finances, by linking financial allocations to measurable performance indicators and results.
Specialists and experts confirmed that the program and performance budget that the government is moving towards implementing represents an important shift in the management of public spending, but it faces implementation challenges related to the readiness of ministries, the efficiency of follow-up, and the ability of institutions to convert financial allocations into tangible services for the citizen.
The Prime Minister’s financial advisor, Mazhar Muhammad Saleh, said that the government is moving towards implementing a program and performance budget, which links financial allocations to measurable achievement indicators and results within state institutions, with the aim of improving spending efficiency and directing resources towards the most effective programs.
He explained that the new system enhances transparency and financial governance and raises the level of accountability, which may be reflected in improved public services, but at the same time he pointed out that there are challenges related to the varying readiness of ministries, weak institutional and informational structures, and the need to develop monitoring systems and build administrative capacities.
For her part, Suad Al-Maliki, a former member of the Parliamentary Strategic Planning Committee, warned against proceeding with a program-based budget for 2027 without evaluating the results of the current budgets, stressing that the success of the experiment is linked to the government’s ability to effectively implement the 2025 and 2026 budgets.
She explained that the delay in the 2025 budget schedules and the lack of clarity regarding implementation results raise questions about the readiness for the transition to the new system. She added that the success of this transformation requires political will and coordination between the executive and legislative branches, along with the adoption of transparent standards and each ministry accurately identifying its needs before being audited by central authorities. She noted that the transitional phase may experience gaps due to administrative changes.
Program budgeting success
In the same context, economic expert Duraid Al-Anzi believes that the success of the program budget is not related to changing the name or form, but rather to the state’s ability to implement and follow up.
He said the main problem is not in preparing budgets, but in converting funds into actual projects and services, warning against the continuation of stalled projects that hinder the achievement of results.
He added that weak executive efficiency and the absence of integrated economic planning lead to continued waste and a weak impact of public spending, stressing that real reform begins with improving management before increasing allocations.
Al-Anzi pointed out that building an effective economic planning system requires extensive institutional reform that extends over years, and may reach about ten years to achieve integrated sustainable development, considering that the biggest challenge lies in implementation and not in plans.
While the government is banking on a program and performance-based budget to reorganize public spending and link it to results, the real test remains the ability of state institutions to transform into services that citizens actually feel
ility of state institutions to transform allocations into services that citizens actually fee
International oil companies resume operations in the Kurdistan Region's oil fields.
The spokesman for the Kurdistan Regional Government, Peshwa Hawrami, announced on Wednesday (June 24, 2026) that oil companies have begun resuming their production operations in the region's fields according to a specific timetable. Hawrami explained that the companies “HKN” and “Gulf Keystone” have already started production, while the companies “DNO” and “Hunt Oil” will join them successively in the coming days, after completing the rehabilitation of the oil sites damaged by previous attacks to ensure the continuity of production in a safe manner.
The official spokesperson stated in a statement received by Network 964 that “Regarding the resumption of oil companies’ operations in the Kurdistan Region, HKN has resumed its production at a rate of 7,000 barrels per day, and will resume production in the Atrush field next Sunday. As for the Leshkan field, Gulf Keystone has started production today, while DNO will resume its production in the Tawk and Fishkhabur fields next Friday.”
He added that Hunt Oil would resume its operations on July 8.
He added that “these companies have suffered serious damage as a result of previous attacks targeting oil fields, which necessitated the temporary cessation of work by some of them to rehabilitate and renovate the damaged sites, a measure that was necessary to ensure the safe continuation of production.”
The Central Bank Governor emphasizes to the US Chargé d'Affaires the importance of implementing the banking reform plan
Central Bank Governor Nizar Nasser Hussein stressed to the US Chargé d'Affaires Joshua Harris on Wednesday the importance of implementing the banking reform plan.
The media office of the governor of the Central Bank stated in a statement received by the Iraqi News Agency (INA) that “the Governor of the Central Bank of Iraq, Nizar Nasser Hussein, received the Chargé d'Affaires of the US Embassy in Iraq, Joshua Harris, who congratulated the Governor on assuming the position.”
He added that "during the meeting, prospects for strengthening the strategic partnership and common issues between the two countries were discussed, and the importance of supporting monetary and economic stability was emphasized, in line with the requirements of political and security stability in Iraq."
According to the statement, Harris affirmed "the United States' keenness to strengthen its relations with Iraq, and to support everything that would consolidate stability and keep the country away from any factors that might contribute to destabilizing its situation."
He praised "the significant reform developments undertaken by the Central Bank of Iraq, and the distinguished and productive relations it has with the US Treasury Department and the Federal Reserve."
For his part, the governor expressed his "appreciation for the relationship between the Central Bank of Iraq and the United States of America," explaining "the importance of implementing the banking reform plan and working to adapt it to achieve the interests of the Iraqi banking sector, in accordance with international standards related to foreign transfer operations, and regulating the sale of dollars according to the best practices required towards the banking sector."
At the conclusion of the meeting, Harris expressed "full readiness to continue supporting the efforts of the Central Bank of Iraq, enabling it to achieve its goals in promoting financial and monetary stability."
Al-Haidari: Appointing a new US mission to Iraq threatens the government formation process.
The former MP, Razzaq al-Haidari, stated on Wednesday
that the US administration's appointment of a candidate to temporarily head the US mission in Baghdad constitutes interference in Iraqi affairs, emphasizing that this move represents a continuation of Washington's dominance over the country.
Al-Haidari told the Information Agency that "the appointment of a head of the US mission in Iraq is part of the ongoing US hegemony over the country," warning of "the danger of interference in the government formation process."
He added that "Washington, through its new envoy, will pressure Prime Minister Ali al-Zubaidi to select ministers who will implement its agenda, particularly in the security ministries, at a time when Iraq is suffering from security threats represented by terrorism, the dangerous security developments in Syria, and the increasing regional tensions in the Middle East."
Al-Haidari called on "Prime Minister Ali al-Zubaidi not to succumb to external pressures and to keep them out of the ministerial appointments, and to bring forward candidates who will work on developing national plans that serve the country and not serve foreign interests."
Earlier, the US-based website Al-Monitor announced the nomination of Peter Shea to temporarily head the US mission in Baghdad, replacing Joshua Harris. The website also warned of the dangers of the envoy interfering in the government formation process.
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Calls to regulate markets and stabilize the exchange rate to protect low-income groups
Calls have increased for the government to intervene to control the markets and limit the repercussions of the rising exchange rate on the prices of goods and services, amid growing fears of increasing living burdens on citizens.
A state of anxiety and fear prevails among the poor and middle-income segments due to the continued turmoil in the country's markets, in light of the continued rise in the dollar exchange rate without any government decision to control the rise occurring in the parallel market, amidst political confirmations of the existence of conditions from the Coordination Framework that require the Prime Minister not to proceed towards making any sensitive economic decisions without consultation and approval from the Framework, at a time when criticism towards the government has intensified, especially since its spokesperson did not confirm or deny Al-Zidi's intention to increase the dollar exchange rate against the dinar in the local markets.
Former State of Law Coalition MP Rasoul Radhi says , “There is an agreement within the coordination framework that important and crucial decisions should be made by the Prime Minister in consultation with and with the approval of the coordination framework.”
He added that “the framework’s approval of important decisions by al-Zaydi was a fundamental condition that was presented to the Prime Minister, in addition to the framework’s condition that al-Zaydi not form a new political bloc and not act on any issue that affects the Iraqi economy.”
He explained that “the country’s economy is sensitive and going through a critical phase at the moment, and therefore it is unlikely that Al-Zaidi would overstep the coordination framework in sensitive issues, especially economic ones, since the framework is considered the reference for making such decisions.”
For his part, the head of the political body of the National Tribal Movement, Abdul Rahman Al-Jazaeri, confirmed that “Prime Minister Ali Al-Zaidi is an expert in economic affairs and continues to work to solve the economic problems that Iraq is suffering from at the present time.”
Iraqi dinar
He added that “Al-Zaydi’s specialization in the economic field has led him to move towards finding ways out of the country’s current crises, which will push towards increasing the exchange rate of the dollar against the Iraqi dinar.”
He pointed out that “Iraq is moving towards the new program under which the value of the dollar will be raised against the dinar, due to the country’s suffering from economic hardship and problems, for which the Prime Minister is working to find solutions, according to an economic vision that will enable Iraq to overcome its crisis.”
Meanwhile, independent politician Haider al-Lami denied the existence of any governmental trend or movement towards increasing the value of the dollar against the Iraqi dinar.
Al-Lami said that “the talk circulating about the existence of a green light from the coordination framework or the government’s intention to increase or raise the value of the dollar against the dinar is not true, as there is absolutely no intention in this regard.”
He added that “the government is carrying out its work normally and it must bear its responsibilities towards the economic conditions of the country and work to find ways to ensure stability, draw up plans and implement them, and secure provisions for the people by working to stabilize the exchange rate domestically.”
He added that “the government has clear tasks that ensure that no decisions are made that harm the people , and that it works to combat corruption in a real and constructive way, and removes corrupt and controversial figures, and there is optimism about the coming days for Iraq.”
Saleh: Iraq needs a comprehensive revolution in economic diversification.
The government believes that increasing the production and export capacities of oil and oil derivatives is a priority at the present stage, which will enhance public revenues and restore to Iraq part of its share in global markets.
The Prime Minister’s financial advisor, Mazhar Muhammad Salih, confirmed on Wednesday that diversifying the country’s sources of financial funding has become “an unavoidable necessity” after the Hormuz shock and the resulting financial conditions in the country, given that Iraq relies almost entirely on revenues from exported crude oil.
Saleh said that the importance of parallel work lies in raising the export capacities of crude oil and oil derivatives in order to restore Iraq’s rightful place in the global market.
In reviewing the current production situation, Saleh explained that Iraq currently produces about 4 million barrels per day, of which 1 million barrels are directed to meet local needs and activities, while the remaining 3 million barrels are exported.
He pointed out that “this figure does not reflect the true weight of the country,” indicating that “Iraq’s supposed share in the international market should not be less than 7 million barrels per day or more.”
He also pointed out that “the successive wars, conflicts and crises that have plagued Iraq since the 1980s have caused its historical oil shares to go to other countries.”
The financial advisor added that “the current stability gives Iraq a favorable and available opportunity today to rearrange its economic papers, by raising production and export capacities, with a focus on expanding the export of high value-added oil derivatives instead of relying entirely on crude oil.”
Saleh concluded his remarks by emphasizing the government’s vision of achieving a “ comprehensive diversification
“A believer is not stung twice from the same hole”... There is no alternative to diversifying exports after the Hormuz shock.
The Prime Minister’s financial advisor, Mazhar Muhammad Salih, confirmed on Wednesday that diversifying the country’s sources of financial funding has become “an unavoidable necessity” after the Hormuz shock and the resulting financial conditions in the country, given that Iraq relies almost entirely on revenues from exported crude oil.
Saleh told Al-Maalomah that the importance of parallel work lies in raising the export capacities of crude oil and oil derivatives to restore Iraq’s rightful place in the global market.
In reviewing the current production situation, Saleh explained that Iraq currently produces about 4 million barrels per day, of which 1 million barrels are directed to meet local needs and activities, while the remaining 3 million barrels are exported.
He pointed out that “this figure does not reflect the true weight of the country,” indicating that “Iraq’s supposed share in the international market should not be less than 7 million barrels per day or more.”
He pointed out that “the successive wars, conflicts and crises that have plagued Iraq since the 1980s have caused its historical oil shares to go to other countries.”
The financial advisor added that “the current stability gives Iraq a favorable and available opportunity today to rearrange its economic papers, by raising production and export capacities, with a focus on expanding the export of high value-added oil derivatives instead of relying entirely on crude oil.”
Saleh concluded his remarks by emphasizing the government's vision of achieving a "comprehensive diversification revolution" encompassing the oil, industrial, and agricultural sectors alike, thereby ensuring the development of a resilient economy capable of withstanding price fluctuations in global markets and achieving sustainable development.
Iraq is considering withdrawing from OPEC and is moving towards increasing its oil exports independently.
Government sources revealed on Wednesday that Iraq is considering a proposal to increase its oil exports outside of OPEC regulations to compensate for the shortfall that occurred during the war.
Sources told Shafaq News Agency that "Iraq is studying the repercussions and consequences of exceeding the oil production ceiling set by OPEC due to the oversupply of crude oil and the impact of this on the buying and selling price."
She added, "If OPEC rejects Iraq's proposals to raise the production ceiling, similar to some of its member states, it may resort to withdrawing from OPEC, thus providing it with sufficient space to raise the production and marketing ceiling."
She added that "the proposal to increase production or withdraw from OPEC may be realized after Prime Minister Ali al-Zaidi's visit to Washington in the middle of next month."
Earlier today, Basra Oil Company directed the suspension of pumping and reduction of production at the West Qurna/2 field, due to the continued state of "force majeure ".
A document issued by the company, which was received by Shafaq News Agency, stated that due to the continued state of force majeure in the region and the unavailability of tankers, please stop pumping by (100%) and reduce production to (50) thousand barrels and store it in your tanks, starting from 12 pm yesterday, corresponding to June 23rd .
This comes at a time when Iraqi oil prices recorded a sharp decline during trading on Wednesday, as Basra Heavy crude fell by 4.09% to $45.78 per barrel, while Basra Medium crude fell by 3.91% to $47.88, coinciding with a decline in crude prices in global markets .
Brent crude fell 0.71% to $76.53 a barrel, while US West Texas Intermediate crude fell by the same percentage to $72.69 a barrel, and UAE Murban crude dropped 1.64% to $69.63 .
An official source in the state-owned North Oil Company revealed earlier on Wednesday that the preparation and readiness of the Iraqi-Turkish pipeline extending from Kirkuk to the Turkish port of Ceyhan has been completed, confirming that trial pumping through the pipeline will begin within two weeks in preparation for resuming exports in a stable manner .
Iraq had asked Turkey to extend the Kirkuk-Ceyhan oil pipeline agreement for at least a year, in a move aimed at giving both sides more time to negotiate a new agreement regulating oil exports through this vital route.
Iran had lifted the de facto blockade of the strait last week after agreeing with the United States to extend the ceasefire for 60 days, before the Iranian Revolutionary Guard announced on Saturday that it was closing the waterway again in response to Israeli strikes in Lebanon, while the US military confirmed that commercial ships continued to operate.
Iraq-U.S. Ties to Shift from Military Cooperation to Economic Partnership, PM Says
Al-Zaidi added that Iraq's relationship with the United States is entering a new phase, saying, "The relationship with the United States will shift from a military one to an economic partnership."
Iraqi Prime Minister Ali al-Zaidi said on Wednesday that relations between Iraq and the United States are set to transition from a military-focused partnership to one centered on economic cooperation, while emphasizing his government's commitment to combating corruption and strengthening state authority.
Speaking to IMI, al-Zaidi said that fighting corruption remains his top priority.
"Combating corruption is at the top of my priorities," the prime minister stated.
Al-Zaidi added that Iraq's relationship with the United States is entering a new phase, saying, "The relationship with the United States will shift from a military one to an economic partnership."
He also noted progress in efforts to consolidate state control over weapons, stating that "most factions have already begun handing over their weapons to the state."
Addressing Iraq's energy sector, al-Zaidi said Baghdad wants the Organization of the Petroleum Exporting Countries to increase Iraq's oil production quota in line with the country's production capabilities and population size.
"We want OPEC to increase our oil production in line with Iraq's oil capabilities and population size," he said.
The prime minister further stated that the complete withdrawal of U.S. forces from Iraq would eliminate the rationale for armed resistance groups operating in the country.
"After the withdrawal of all U.S. forces, there will be no justification or need for any resistance in Iraq," al-Zaidi said.
Al-Zaidi is scheduled to visit Washington, D.C. in mid-July for talks with U.S. President Donald Trump at the White House. The visit will mark his first official trip abroad since assuming office in May.
Washington sends a message to Baghdad regarding the "Popular Mobilization Forces"
The US State Department published on Wednesday statements by its Secretary of State, Marco Rubio, which included a “message” to the Iraqi government, according to the Jerusalem Post.
According to what was translated by “Baghdad Today” and followed up by “Roj News”, Rubio’s statements, which he made yesterday and published today as an official statement, confirmed that “the factions in Iraq that launch drones and missiles are preventing the end of hostilities and conflict in the region and threaten its stability and will continue to do so unless they are dealt with.”
He added that “this issue will be dealt with in due course and will be raised in the negotiations currently underway,” while the US State Department stressed in its statement that its government is working to achieve stability in the region by eliminating the factors that affect it.
The newspaper, for its part, confirmed that Rubio’s statements represent “a clear and important message to the Iraqi government about Washington’s desire to control the factions in Iraq,” explaining that the US administration had already begun a “campaign” to target the factions and their leaders through economic sanctions and placement on terrorism lists.
It is worth noting that Rubio's statements coincided with the Iraqi government's calls to restrict weapons to the state, a matter emphasized by US President's envoy Tom Barrack during his visit to Baghdad and his meeting with Prime Minister Ali Faleh al-Zaidi.
Haitham al-Hiti told Al-Jarida: Washington is repositioning itself in the Middle East, and Iraq is facing a new political phase.
Strategic researcher and academic Haitham Al-Hiti confirmed that the United States is moving towards a comprehensive repositioning in the Middle East region, based on three main variables: the return of US President Donald Trump to the White House, the post-US-Iranian confrontation phase, and the repercussions of the US-China competition in the region.
Al-Hiti explained in a statement to “Al-Jarida” that the ruling political elite in Iraq is aware of the nature of the upcoming transformations, noting that Baghdad will be faced with the option of adapting to the new American vision that aims to expand American influence and reduce Iranian influence within Iraq.
He added that the anticipated changes are not related to changing the political system as much as they are related to reshaping the balance of influence and active forces, indicating that the influential political forces have already begun to take steps and measures that are consistent with the new stage.
Al-Hiti pointed out that the next prime minister will not be negotiating these conditions as much as he will be concerned with managing and implementing the requirements of the new phase, noting that the support he enjoys from the coordinating framework forces and the main political forces makes him part of the process of rearranging the political landscape in accordance with regional and international changes.
He concluded by saying that the future of the Iraqi-American partnership will be determined by the extent to which Iraqi political forces commit to the new transformations, which will lead to reducing the scope of Iranian influence and reshaping the relationship between Baghdad and Washington in the coming phase.
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