Rubio meets Iraq’s PM as remaining US troops prepare exit
The meeting in New York comes less than two weeks before remaining US troops are set to leave Iraq.
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NEW YORK — Days before the last US troops are due to withdraw from Iraq, US Secretary of State Marco Rubio on Monday met with the country’s prime minister as Baghdad faces mounting pressure from Washington to rein in Iran-backed militias.
Rubio’s meeting with Iraqi businessman-turned-politician Ali al-Zaidi on the sidelines of the UN General Assembly in New York comes ahead of the scheduled Sept. 30 departure of the hundreds of remaining US troops stationed in Iraq to help counter the Islamic State.
The American withdrawal coincides with an Iraqi government deadline for armed groups to hand over their weapons to the state-run Popular Mobilization Forces, an umbrella network of Shiite militias formed to fight ISIS and formally incorporated into Iraq’s security forces a decade ago.
In an interview with the New York Times published Monday, Zaidi outlined a new, extended deadline for the militias to disarm. Beginning on Sept. 30, Iraq's armed groups would be required to observe a 90-day halt in attacks. They would then begin handing over their weapons, with the process ending by June 30, 2027, Zaidi said.
US special presidential envoy for Iraq, Tom Barrack, told Al-Monitor as he was leaving the Rubio-Zaidi meeting that there is agreement that by the end of June “only the state is the keeper of the military force.”
The Iraqi government’s call to disarm, however, has been met with fierce resistance by the militias, even as the departure of US troops removes the justification many have used to retain their weapons.
Several of the most powerful factions, including Kata’ib Hizbollah, refuse to voluntarily surrender their weapons. Others have said they are prepared to do so but appear to be waiting for political concessions in return, said Victoria Taylor, director of the Iraq Initiative and Syria Project at the Atlantic Council.
Taylor pointed to Asaib Ahl al-Haq as an example, saying the group is waiting to see whether the United States will accept the appointment of Laith al-Khazali — the brother of its secretary-general, Qais al-Khazali — as a deputy prime minister in Iraq’s government.
“Ultimately, these groups want to see a political pathway that would allow them to be removed from designation lists and become full participants in Iraq’s political process,” Taylor said.
The disarmament push comes as the war between Iran and the United States continues into its seventh month, with Tehran maintaining a chokehold over the Strait of Hormuz and Yemen’s Houthis escalating their fight against Saudi Arabia.
Since the war began on Feb. 28, Iran-backed groups have carried out hundreds of attacks targeting US-linked sites in Iraq, including its embassy in Baghdad. They also struck outside of Iraq’s borders, including a September drone attack on Saudi Arabia’s East-West pipeline that the Iraqi government confirmed was launched from its territory.
The International Crisis Group's senior analyst for Iraq, Lahib Higel, said a genuine disarmament process involving these groups would likely take years.
“A fundamental condition for that to work will be that these groups that are ideologically and operationally aligned with Iran will not be at war with the US while that's supposed to happen,” Higel said.
Washington and Tehran have vied for influence in Iraq since the US-led invasion toppled longtime dictator Saddam Hussein in 2003. Days after meeting US President Donald Trump in Washington for his first foreign trip as prime minister, Zaidi met Iranian President Masoud Pezeshkian in Tehran.
Zaidi, who took office in May, emerged as a compromise candidate acceptable to both Washington and Tehran after the Iran-aligned Coordination Framework initially tapped Prime Minister Nouri al-Maliki to succeed outgoing premier Mohammed Shia al-Sudani. The coalition didn’t advance his nomination after Trump threatened to cut US aid in January, concerned that a pro-Iran government would take root should Maliki stage a political comeback.
Zaidi was previously chairman of the board at Al-Janoob Islamic Bank, one of several financial institutions that Iraq’s central bank barred in 2024 from making US dollar transactions as part of an effort to crack down on money laundering and illicit use of American currency.
Complaints from students, retirees, and travelers
Shenkali demands the Central Bank clarify the reasons for the disruption of electronic payment cards.
On Monday, September 21, 2026, former MP Majid Shenkali, a leader in the Kurdistan Democratic Party, called on the Central Bank and Iraqi banks to provide an explanation regarding the reasons for the cessation of some electronic payment cards from working outside the country, indicating that the crisis has been ongoing for days and has caused harm to students, retirees, and travelers.
Shankali said in a post seen by 964 Network that the service outage disrupted the accounts of citizens outside Iraq, especially the segments that rely on it the most, such as retirees, students studying abroad, and other travelers.
He called on financial institutions to develop practical and quick solutions and clarify the circumstances to the public, stressing that he only brought the issue to the media after verifying the validity of the complaints and the repeated instances of bank rejections.
This crisis comes at a time when the Iraqi exchange market is suffering from continuous restrictions and updates imposed by the Central Bank in cooperation with international compliance platforms, to limit “double cash withdrawals” and speculation in dollars via electronic cards abroad.
The Central Bank had previously conducted reviews of international withdrawal transactions and reduced the financial limits for cards not linked to real bank accounts, which led to the freezing of some account categories due to strict control over foreign financial transfers.
Details of everything he will present to world leaders
Al-Zaidi will speak at the United Nations about the situation in the region and the sovereignty of Iraq.
The Prime Minister’s Media Office spoke today, Monday, September 21, 2026, about Al-Zidi’s agenda for his participation in the 81st session of the United Nations General Assembly in New York, explaining that he will deliver Iraq’s official speech to present Baghdad’s positions on regional crises, review the government’s steps in the files of economic reform, diversification of income sources, combating corruption, openness to investment, and affirmation of national sovereignty, in addition to holding bilateral talks with leaders and heads of international delegations to build new economic partnerships.
The media office of Al-Zaidi stated in a statement, a copy of which was received by 964 Network , that “Prime Minister Ali Falih Al-Zaidi is heading today, Monday, to New York to participate in the meetings of the 81st session of the United Nations General Assembly, and to deliver Iraq’s speech before the representatives of the member states of the United Nations.”
During his speech, Al-Zaydi will present “Iraq’s positions on regional and international developments and crises, and the Iraqi government’s approach to addressing the economic and developmental challenges that Iraq is overcoming.”
The Prime Minister will present “the strong and prominent steps that Iraq is taking in the paths of economic reform, achieving diversification in sources of income and national output, addressing corruption, opening up to investment, and affirming national sovereignty.”
Al-Zaydi will hold “a series of bilateral meetings and discussions with a number of heads of state, heads of government, and heads of participating delegations, addressing relations between Iraq and those sisterly and friendly countries, and opportunities to build and strengthen economic cooperation, in the interest of common interests.”
A decision is expected to raise the dollar exchange rate as part of the economic reform plan.
Former MP Baqir al-Saadi predicted on Monday (September 21, 2026) that the official exchange rate of the dollar would rise to 150,000 dinars per 100 dollars in the coming weeks, as part of what he described as an economic reform policy led by the government.
Al-Saadi explained in his interview with “Baghdad Today” that “Iraq is suffering from a severe financial and economic crisis as a result of the tensions in the Middle East and what is happening in the Strait of Hormuz, especially since Iraq depends on up to 90 percent of crude oil exports to finance the treasury, and therefore the repercussions of what is happening now have begun to appear clearly in the Iraqi scene.”
He added that "the government has begun adopting an economic reform plan whose features will become clearer in the coming months," noting that "he expects the dollar exchange rate to rise from 132,000 dinars per 100 dollars to 150,000 dinars per 100 dollars in the coming weeks."
Al-Saadi explained that "this difference has been exploited for years by companies and offices to achieve quick financial profits, and therefore raising the exchange rate will also have a role in securing more funds that can be used to provide salaries and other entitlements."
He pointed out that "the process of raising the exchange rate will require adjusting the pace of the markets and preventing the impact on low-income and poor segments, as well as not affecting basic commodities, especially food," stressing that "raising the exchange rate is a decision that will be taken during the coming period according to expectations, especially with the economic reform efforts that the government will work on."
The parliamentary finance committee is finalizing the closing accounts in preparation for approving the 2027 budget.
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The Parliamentary Finance Committee announced on Monday (September 21, 2026) the completion of procedures for discussing the final accounts of previous fiscal years, in preparation for approving them before voting on the Federal General Budget Law for 2027.
The Media Department of the House of Representatives stated in a statement received by "Baghdad Today" that the Finance Committee, headed by MP Uday Awad and with the attendance of its members, held a meeting today, September 21, 2026, to discuss the final accounts report for previous fiscal years.
She added that the committee has completed the procedures related to the final accounts, in preparation for their approval, which will contribute to fulfilling the legislative and financial requirements necessary for approving the federal general budget for 2027.
The committee stressed the importance of completing the study of the final accounts and reviewing the related financial data, which will enhance the accuracy of the procedures and pave the way for the approval of the general budget for next year.
Can Iraq break free from the grip of the American federal government?
Legal expert Ali Al-Tamimi explained the extent to which Iraq can break free from the control and dominance of the US Federal Reserve Bank, and obtain revenues from sold oil without the funds reaching the United States of America.
Al-Tamimi told Al-Maalouma that "Iraq has the ability to go to the UN Security Council in order to ensure the amendment of Resolution 1483 of 2003, which obligated Baghdad to transfer oil and gas revenues to the US Federal Reserve Bank."
He added that "Iraq has the right to benefit from the bilateral agreement between Baghdad and Washington to improve the management of its funds and amend the Security Council resolution under which oil revenues were placed in the Federal Reserve Bank."
He explained that "the Council issued a resolution in 2015 ending the restrictions imposed on Iraq after the 1990 invasion of Kuwait, allowing Iraq greater control over its funds if it takes steps to reduce its dependence on the US dollar and increase the independence of its fiscal policy."
Kurdistan Presidency: Baghdad is responsible for protecting oil facilities after September 30
On Monday, the spokesperson for the Kurdistan Region Presidency, Dilshad Shahab, confirmed that the federal government will bear a great responsibility for defending Iraq, including the Kurdistan Region, after September 30, particularly in the airspace, noting that protecting the region's oil facilities is part of this responsibility.
Shahab said in a press conference, attended by a correspondent from Shafaq News Agency, that the protection of oil facilities by air in the Kurdistan Region comes in accordance with the agreement between the regional government and the federal government, noting that a major part of Iraq’s revenues comes from the region.
He explained that the threats to oil facilities in the region have had a significant and negative impact on the Iraqi economy, stressing that the issue is not only related to the Kurdistan Region, but to the Iraqi economy as a whole.
He added that the President of the Kurdistan Region and the regional government made it clear to the federal government that Kurdistan would support the protection of these oil facilities.
He noted the arrival of federal delegations to the Kurdistan Region and to the oil facilities, indicating that there is an agreement in principle with the federal government regarding the protection of the oil facilities, but he clarified that he does not know the remaining military details.
Regarding military support, Shihab said that the support provided by the coalition forces during the past period came within the agreement with the federal government, and that the date for the end of the coalition forces’ mission will come sooner or later, explaining that there is a strategic agreement between Iraq and the United States, which includes a part related to military matters.
He added that it is possible that in the future the coalition forces will not be present in their current form, but military support is not limited to a military presence on the ground.
He continued: "We heard from senior military leaders that Iraq still needs international support because of the many threats in the region," noting that unifying the Peshmerga forces was a prerequisite for the coalition forces to continue their support.
Regarding relations between the Kurdistan Democratic Party and the Patriotic Union of Kurdistan, Shihab said that he is not directly involved in this matter, but he believes that, when comparing the current situation to what it was a month ago, there has been an improvement in relations, with an exchange of views and some meetings, as well as a cessation of mutual media attacks.
Regarding the formation of the Kurdistan Regional Government, Shahab indicated that there was a "good atmosphere," stressing the need to activate the parliament, and considering that the current developments represent "good hope" for the formation of the government.
The September 30th date coincides with the deadlines related to ending the international coalition's military presence in Iraq.
In September 2024, Iraq and the United States agreed to end the military mission of the US-led international coalition against ISIS in Iraq, as part of a phased plan to move the security relationship between the two countries from the framework of the coalition to a bilateral partnership.
The first phase of the mission ended in September 2025, while forces remained in the Kurdistan Region to support operations against the organization in Syria, with the final phase to be completed by the end of September 2026.
The international coalition was formed in 2014 to assist Iraqi forces in confronting ISIS, which at the time controlled large areas of Iraq and Syria. The mission of the coalition forces later shifted primarily to training, advising, and intelligence support, while Baghdad asserts that its forces are now capable of assuming responsibility for security and pursuing the organization's cells.
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Iraq is Iran’s last route for smuggled dollars, Iraqi MP says
Iraq has become Iran’s only remaining route for obtaining smuggled US dollars following intensified American economic pressure on Tehran, an Iraqi lawmaker told Iran International.
“Dollar smuggling from Iraq to Iran or any other destination is continuing,” said Sherwan Doberndani, a member of the Iraqi parliament’s security and defense committee.
Doberndani said Washington stopped dollar transfers to Baghdad about a month ago, contributing to the dollar’s rise against the Iraqi dinar.
The United States is cutting off Iran’s access to the global financial system, State Department spokesperson Tommy Pigott said earlier this month, through its Operation Economic Outcast which has already led to sanctions against banks in Turkey, the UAE and Russia.
The Iraqi lawmaker warned that Iraq could face sweeping US sanctions, potentially extending to its oil sector, if Baghdad failed to bring armed groups outside state control under government authority.
The warnings come ahead of the planned September 30 withdrawal of international coalition forces from Iraq, with efforts to disarm Iran-aligned forces yet to produce an agreement.
An Iraqi official told Al Jazeera
Al-Zaidi will inform Trump of a plan to disarm the factions that extends until the middle of next year.
An Iraqi official revealed on Monday (September 21, 2026) a government plan to disarm the factions that extends until the middle of next year.
Al Jazeera quoted the official’s statements, which were followed by Network 964 , that “the Iraqi government has a plan to disarm the factions that extends until the middle of next year.”
He added: “It is likely that Iraqi Prime Minister Ali al-Zaidi will inform US President Donald Trump of this plan during their meeting in New York.”
Al-Zaidi's nights in New York began... the government plane arrived
Prime Minister Ali al-Zaidi arrived in New York City on Monday (September 21, 2026) to participate in the 81st session of the United Nations General Assembly.
A brief statement from the media office, a copy of which was received by Network 964 , stated :
Prime Minister Ali Faleh al-Zaidi arrives in New York to participate in the 81st session of the United Nations General Assembly.
Al-Zaydi: The weapons control process begins with a 90-day deadline and ends in June 2027.
Iraqi Prime Minister Ali al-Zaidi pledged on Monday to disarm armed factions in Iraq by June 2027, stressing that the factions have 90 days after which they will be outlawed.
Al-Zaydi told the New York Times that the disarmament plan would be implemented in stages, explaining that this step would be a key focus in Iraq's management of its relations with its two main allies, the United States and Iran, in light of the ongoing war between them.
He added that "the disarmament plan is not optional, but a necessity."
Al-Zaydi continued, saying: "Others spoke about this matter and then backed down. They succumbed to pressure or other fears. As for me, this issue, along with the issue of corruption, is a matter of honor."
According to Al-Zaydi, there will first be a 90-day period during which the factions will refrain from launching any attacks, with a guarantee that they will not be attacked by US forces. After that, the factions will begin handing over their weapons, with the disarmament process to be completed by June 30, 2027.
Regarding oil, Al-Zaidi explained: "We lost 60% of our monthly oil revenues because of the war," clarifying that "Iran did not allow our tankers to pass through Hormuz, as its goal is to raise global oil prices."
The issue of armed factions is one of the most sensitive issues facing the Iraqi government, with the approach of September 30, which the main political forces have set as the deadline for restricting weapons to official institutions.
The State Administration Coalition, which includes the most prominent Shiite, Sunni and Kurdish political forces, stressed during its meeting on August 5 the need to restrict weapons to the state, and considered the parties that carry out activities that threaten the security of the country outside the framework of official institutions as “outlaws and must be fought.”
The September 30th date also coincides with the deadlines related to ending the military presence of the international coalition in Iraq, which some factions use as a basis for linking the future of their weapons to the withdrawal of foreign forces.
Prime Minister: The weapons control process will begin with a 90-day period during which factions will not attack or be subjected to American attacks.
Prime Minister Ali Faleh al-Zaidi confirmed that the weapons control process will begin with a 90-day period during which the factions will not attack or be subjected to American attacks, while he indicated that the government wants to build bridges and economic ties between Iraq and the countries of the world.
In an interview with The New York Times, which was monitored by the Iraqi News Agency (INA), Al-Zaidi stated that "controlling weapons in Iraq is not optional, but a necessity," emphasizing that "this issue, along with combating corruption, is a matter of honor for him."
He added that "Iraq, the world's third-largest oil exporter, lost 60 percent of its monthly oil export revenues due to the war between the United States and Iran, which led to the disruption of shipping through the Strait of Hormuz."
He continued, "We want to build bridges and economic ties between Iraq and the countries of the world, and under this government, Iraq will be a point of convergence, not a point of hostility."
Al-Zaidi stressed that "weapons must be controlled first so that we can build a robust economy," indicating that the terms of the agreement with the armed factions regarding disarmament and its timeline will be announced on September 30.
He explained that the process would begin with a 90-day period during which armed factions would refrain from launching any attacks, with a guarantee that they would not be attacked by US forces. Following this, the factions would begin handing over their weapons, with the disarmament process scheduled to conclude by June 30, 2027.
He stated that his objective was for these factions to cease existing as independent entities, adding, "They will join the Popular Mobilization Forces as individuals and be integrated into them." He emphasized that after the deadline, any groups operating under the names of armed factions "will be considered outlaws."
Regarding his efforts to reach an agreement with Turkey, al-Zaidi said he had focused Iraq's efforts on strengthening economic ties between the two countries. He noted that Iraq had agreed this year to a one-year agreement to increase oil exports to Turkey via an existing Iraqi pipeline, and that Iraq is currently aiming to expand the pipeline's capacity.
He added that during his visits to France and Germany last week, he presented plans for constructing pipelines through Turkey to transport Iraqi oil directly to Europe.
During the interview, al-Zaydi addressed the economic challenges facing Iraq, stating that the country has lost approximately $60 billion in revenue since the start of the war.
He pointed out that despite Iraq being considered a regional partner of Iran, Iran has not allowed Iraqi tankers to pass through the Strait of Hormuz.
He said, "We spoke at length, and the decision issued by Iran is firm," adding, "Their goal is to raise global oil prices. It's not about whether we are close to them or not; in any case, they want to exert pressure."
US Treasury Secretary: In two days, all Iranian airlines worldwide will cease operations.
US Treasury Secretary Scott Bisent announced on Monday that Iranian airlines would cease operations worldwide in two days.
The minister said in press statements: We discussed the issue of Iran with China, and they are very involved.
He added: I cannot say how long the conflict will last.
Yesterday, an Iraqi security source reported that the Iranian side informed the Iraqi authorities of the possibility of not receiving flights coming from all countries, starting next Tuesday, with the possibility of extending the decision for several days.
The source explained to Shafaq News Agency that this report has not yet been accompanied by any official notification to the Iraqi aviation authorities regarding the suspension of flights.
Trump Pulls Back From Houthi Strikes After Reversing Himself Twice
MBS called Trump on Thursday to implore him to strike the Houthis, Trump told the Pentagon to prepare airstrikes, then reversed again by Sunday as his inner circle warned of military overextension in an already strained Iran war
President Donald Trump reversed himself twice over the question of striking Houthi targets in Yemen, ultimately deciding by midday Sunday not to join Saudi Arabia in strikes against the Iran-backed group for now, the New York Times reported citing administration officials, in a decision that reflects the acute strategic dilemma Washington faces between its obligations to a key Gulf ally and the limits of its military bandwidth in the seventh month of the Iran war.
The decision came after two weeks of Saudi pleading and a particularly intense episode on Thursday, when Crown Prince Mohammed bin Salman called Trump personally to implore him to help blunt the rapidly advancing Houthi forces. Trump had met with advisers just the day before and told them he did not favor strikes. But after speaking with MBS, he reversed himself and told the Pentagon to prepare for airstrikes against the Houthis. By midday Sunday, he had reversed himself again. There would be no US airstrikes against the Houthis, at least not for the time being.
Administration officials spoke on the condition of anonymity because they were not authorized to discuss military planning. The White House press office declined to discuss Trump's deliberations for the record. A senior administration official would say only that "the US has a defense agreement with Saudi Arabia and we will always defend our allies."
Most of Trump's inner circle was either deeply skeptical or outright opposed to joining the Saudi fight against the Houthis, especially given the existing strains facing the US military in the war with Iran, according to a senior administration official. The concern is that striking Houthi targets in Yemen would open another front in a conflict that Trump started but has been unable to end, as it continues to spread economic shock around the globe with Brent crude above $100 a barrel and diesel prices in the United States above $6 a gallon.
The strategic dilemma is acute. Saudi Arabia is one of Washington's most important partners in the Iran war, having participated in joint strikes on Iranian proxy targets in eastern Iraq, absorbed drone and missile attacks on its energy infrastructure, and cooperated with Operation Economic Outcast. Refusing to help Saudi Arabia against the Houthis risks alienating a key Gulf partner at the worst possible moment. But joining Saudi Arabia against the Houthis risks widening a conflict that the US military is already straining to sustain, with the Pentagon having polygraphed 50 officers over leaked reports of munitions shortfalls and Defense Secretary Hegseth having held no Iran war press briefing since May 5.
The Houthis took advantage of the instability generated by the broader US-Iran war to reignite their conflict with Saudi Arabia this summer. They captured the port of Mocha and Perim Island in the Bab al-Mandeb Strait, struck Saudi Arabia's East-West pipeline with drones launched from Iraq on September 10, and fired a ballistic missile toward Riyadh that was intercepted on Saturday morning. MBS called Trump twice on September 10 and again on Thursday, each time failing to secure American strike commitments, and Trump told the Pentagon to prepare strikes after Thursday's call before walking that back by Sunday.
The decision not to strike for now does not foreclose the option. Trump said Friday that he is talking to the Houthis and that they want to know whether a deal can be reached. A diplomatic track and a military threat are being held in parallel, as they have been throughout the conflict, with the threat of imminent action used as leverage even when the action itself is deferred.
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