Key Takeaways:

• POLITICS: Zaidi Replaces Central Bank Chief; PUK and New Generation Want to Take the KRG Premiership from Rival KDP – On June 21, Iraqi Prime Minister Ali al-Zaidi appointed Nizar Nasir Hussein as the new governor of the Central Bank of Iraq (CBI). Hussein, who previously served as director of the CBI’s Counter-Terror Financing and Anti-Money Laundering Bureau, replaced outgoing CBI Governor Ali al-Allaq. Zaidi also appointed Adil al-Yasiri as the new head of the National Investment Commission, replacing its outgoing chairman, Haider Makkiyah. The appointments follow a series of changes affecting senior government positions announced in recent days, including the National Security Adviser and the head of the National Security Service. On June 24, New Generation leader Shaswar Abdulwahid said that his party and the Patriotic Union of Kurdistan (PUK) have agreed that the next prime minister of the Kurdistan Regional Government (KRG) should come from their alliance. The two parties control 38 seats, just one fewer than the 39 seats held by the ruling Kurdistan Democratic Party (KDP). In response, KDP officials said the party does not recognize the PUK–New Generation alliance and continues to regard the PUK as holding only 23 seats in parliament. They warned that if the KDP and PUK fail to reach an agreement, the Kurdistan Parliament should be dissolved and new elections should be held. Government formation has been stalled since the October 2024 election due to disputes between the KDP and PUK over the premiership and the distribution of other key cabinet positions. In other developments, on June 22, Prime Minister Zaidi spoke with Turkish President Recep Tayyip Erdoğan to discuss Iraqi oil exports through the Kirkuk-Ceyhan pipeline and water issues. Erdoğan invited Zaidi to visit Ankara in late July. more…
• SECURITY & HUMANITARIAN: Judiciary Seeks Harsher Penalties for Drone Manufacturing, Possession, and Use – On June 24, Iraq’s Supreme Judicial Council issued new guidance instructing all courts handling cases involving drones to apply the provisions of the Anti-Terrorism Law (No. 13 of 2005) against individuals involved in the manufacture, possession, or use of drones in violation of the law. One-way attack drones have been used extensively by Iran-backed Iraqi militias in attacks on the Kurdistan region and U.S. interests in Iraq and elsewhere. The announcement also comes days after a small drone crashed near the guesthouse of Parliament Speaker Haybat al-Halbousi in Anbar province, igniting nearby brush and grass. The military said the drone’s origin was unclear but added that it had a short range and was not carrying an explosive payload. In other developments, on June 25, the Babylon Police Command said that unidentified individuals used a hand grenade to attack a pharmacy in the subdistrict of al-Iskandariyah, north of Hilla. The targeted business belongs to a member of an independent political party known as the Idrak Movement. There were no reports of casualties. more…
• ECONOMY & CLIMATE: Southern Oil Exports Begin to Rebound; Kurdistan Oil Producers to Restart Production – On June 23, Iraq’s State Organization for Marketing of Oil (SOMO) said that southern oil exports through the Strait of Hormuz have averaged 444,000 barrels per day (bpd) in recent days, citing improved traffic through the strategic shipping route. SOMO Director Ali al-Shatri said northern exports through Turkey were holding steady at around 230,000 bpd, bringing total exports to approximately 675,000 bpd—roughly double the lows reported in May but still only about one-fifth of pre-war levels. Oil Ministry officials said there is no fixed timeline for restoring exports to pre-war levels due to differences in reservoir characteristics among fields. The ministry is prioritizing fields that produce associated gas, condensates, and liquefied gas because of their importance for electricity generation and domestic cooking fuel supplies. Current production from southern oil fields stands at approximately 2.1 million bpd, according to remarks by Iraqi oil officials. Correspondence between the Oil Ministry and operating companies indicates that a shortage of tankers available to lift Iraqi crude continues to require production restrictions at southern fields, including Rumaila. On June 24, a spokesman for the KRG said that several foreign oil companies were preparing to resume operations in the region after a prolonged suspension due to security concerns. Gulf Keystone resumed production on Wednesday, while the U.S. company HKN is expected to restart production at the Atrush field on Sunday. The spokesman added that Norwegian firm DNO plans to resume production at the Tawke and Peshkabir fields by Friday, while another U.S. company, Hunt Oil, is scheduled to restart operations on July 8. The announcement follows talks between the federal government and the KRG that resulted in an agreement to develop joint plans to protect oil companies and facilities in the Kurdistan region from future attacks. more…

Read our latest analysis: What Does the U.S.-Iran MOU Mean for Iraq?

For more background on most of the institutions, key actors, political parties, and locations mentioned in our takeaways or in the stories that follow, see the ISHM Reference Guide.

POLITICS: Zaidi Replaces Central Bank Chief; PUK and New Generation Want to Take the KRG Premiership from Rival KDP

On June 21, Iraqi Prime Minister Ali al-Zaidi announced the appointment of a new governor of the Central Bank of Iraq (CBI). A statement issued by Zaidi’s office said that Nizar Nasir Hussein has replaced outgoing CBI Governor Ali al-Allaq. Hussein previously served as director of the CBI’s Counter-Terror Financing and Anti-Money Laundering Bureau. Earlier, Zaidi had also appointed Adil al-Yasiri as the new head of the National Investment Commission, replacing its outgoing chairman, Haider Makkiyah. The appointments follow a series of changes affecting senior government positions announced in recent days, including the National Security Adviser and the head of the National Security Service. Allaq and Araji have both been given lower profile government advisory positions, reports have indicated.

On June 22, Iraqi Prime Minister Ali al-Zaidi spoke with Turkish President Recep Tayyip Erdoğan to discuss bilateral relations, focusing on the resumption and development of Iraqi oil exports through the Kirkuk-Ceyhan pipeline, according to a statement by Zaidi’s office. They also discussed water issues, potential cooperation agreements in the fields of gas and agriculture, and reaffirmed their commitment to advancing the Development Road project as a strategic initiative to strengthen regional economic and trade connectivity. During the call, Erdoğan renewed his invitation for Zaidi to visit Ankara, which is expected to take place in late July.

On June 23, judiciary sources said the Central Criminal Court sentenced Salah ad‑Din politician Yezin Mishan al‑Jubouri to five years in prison after convicting him on fraud charges. Jubouri was arrested in February on allegations that he had falsely presented himself as a senior government official to obtain financial gains estimated at IQD 41 billion. According to the sources, the court determined that Jubouri had indeed taken the large sum from a businessman after convincing the victim that he could provide access to the prime minister’s office and arrange meetings with him to facilitate business transactions.

On June 23, security forces arrested former Salah ad-Din Governor Raed al-Jubouri on corruption charges, government sources told al-Sumaria. Later, an investigative judge at the Central Anti-Corruption Court said that confessions made by Adnan Hamad al-Jumaili, the former Deputy Oil Minister for Refineries, who was arrested on corruption charges in May, implicated Jubouri and led to his arrest. The judge added that authorities had recovered additional assets linked to the investigation, bringing the total seized to $11 million and nearly IQD 98 billion in cash, along with gold, weapons, and titles to dozens of properties.

On June 23, a report by al-Mada mentioned that protests have escalated for a second week in several areas of Diwaniyah province amid growing public frustration over worsening electricity outages. According to the report, most towns in the province are experiencing outages lasting as long as 18 hours a day.

On June 24, New Generation leader Shaswar Abdulwahid said that his party and the Patriotic Union of Kurdistan (PUK) have agreed that the next prime minister of the Kurdistan Regional Government (KRG) should come from their alliance. According to Abdulwahid, the PUK and New Generation plan to sign a document formalizing their political partnership—first announced in January—by next week. In January, the two parties formed a joint parliamentary bloc with 38 seats, just one fewer than the 39 seats held by the ruling Kurdistan Democratic Party (KDP), creating near parity in the legislature. The PUK holds 23 seats and New Generation 15. Government formation has been stalled for more than 18 months due to disputes between the KDP and PUK over the premiership and the distribution of other key cabinet positions. Meanwhile, PUK member Mahmoud Khoshnaw said the alliance between the PUK and New Generation is genuine and that, together with its allies, the PUK bloc in the Kurdistan Parliament is now equal in size to the KDP bloc. He argued that positions in the next KRG are not the property of any one party to distribute and called on the KDP to join the PUK’s efforts to form a new government. In response, KDP member Wafa Mohammed Karim said that the KDP does not recognize the PUK–New Generation alliance and continues to regard the PUK as holding only 23 seats in parliament. He called on the PUK to return to negotiations and form a government based on each party’s parliamentary representation, warning that if the KDP and PUK fail to reach an agreement, the Kurdistan Parliament could be dissolved and new elections held.

Sources cited in this section include: Iraqi PM’s office, al-Mada, ISHM archive, Shafaq, Iraq Observer, al-Sumaia, Rudaw, PUKMedia, Ultra Iraq.

SECURITY & HUMANITARIAN: Judiciary Seeks Harsher Penalties for Drone Manufacturing, Possession, and Use

On June 20, the Iraqi military said that a small drone crashed near the guesthouse of Parliament Speaker Haybat al-Halbousi in the district of al-Garma in Anbar province, igniting nearby brush and grass. The military said the drone’s origin was unclear, but added that it had a short range and was not carrying an explosive payload. 

On June 21, Iraq’s Joint Operations Command said that F-16 jets conducted two airstrikes against hideouts used by suspected ISIS militants in a remote desert area of Anbar province. Ground troops from the army’s 5th division were later dispatched to the site to assess the impact of the strikes. 

On June 24, Iraq’s Supreme Judicial Council issued new guidance instructing all courts handling cases involving the use of drones to apply the provisions of the Anti-Terrorism Law (No. 13 of 2005) against individuals involved in the manufacture, possession, or use of drones in violation of the law. One-way attack drones have been used in large numbers by Iran-backed Iraqi militias in attacks on the Kurdistan region and U.S. interests in Iraq and beyond.

On June 25, a spokesman for the Babylon police command said that unidentified individuals used a hand grenade to attack a pharmacy in the subdistrict of al-Iskandariyah, north of Hilla. The targeted business belongs to a member of an independent political party known as the Idrak Movement, the spokesman noted. There were no reports of casualties. 

On June 25, local sources in Maysan province said that armed clashes erupted between two tribes in al-Qadisiyah neighborhood of central Amara. One person was killed and two others were killed in the fighting, which the sources linked to a blood feud between the two tribes.

Sources cited in this section include: Ultra Iraq, INA, NINA, al-Mirbad.

ECONOMY & CLIMATE: Southern Oil Exports Begin to Rebound; Kurdistan Oil Producers to Restart Production

On June 20, Iraq’s Oil Ministry said it started drilling what it described as its first exploration well in northern provinces (outside the Kurdistan region) since 1978. The exploration well is targeting potential oil and gas deposits in the Amerli district of Salah ad-Din province, the ministry said in a statement. It added that the drilling operations are being performed under a trilateral contract between state-owned North Oil Company, the Iraqi Drilling Company, and the Oil Explorations Company. 

On June 23, the director of Iraq’s Oil Marketing Company (SOMO) said that southern oil exports through the Strait of Hormuz have averaged 444,000 barrels per day (bpd) in recent days, citing improvements in traffic across the oil shipping bottleneck. The director, Ali al-Shatri, also noted that northern exports through Turkey were holding steady at around 230,000 bpd, bringing total exports to approximately 675,00 bpd – roughly double the lows reported in May but still only about 20% of pre-war levels. A few days earlier, a spokesman for the Iraqi Oil Ministry said there is no fixed timeline for restoring crude oil production and exports to levels seen before the Iran war due to differences in reservoir characteristics and production capacity among fields. The spokesman, Salim Farhoud, said oil companies have begun restarting production where operations were reduced, while noting that many operators, particularly Chinese firms, had remained active at their sites throughout the disruption. Farhoud said the ministry is prioritizing fields that produce associated gas, condensates, and liquefied gas because of their importance for electricity generation and domestic cooking fuel supplies. He added that southern oil fields could potentially return to pre-war output levels of more than 3 million barrels per day (bpd) within one to two months. Current production from southern oil fields stands at approximately 2.1 million bpd, of which a little over one half is produced by the Rumaila field alone, according to remarks by Iraqi oil officials. Correspondences between the Oil Ministry and operating companies indicate that lack of tankers ready to lift Iraqi crude continues to require output restrictions at southern oil fields, including Rumaila.

On June 24, a spokesman for the Kurdistan Regional Government (KRG) said that several foreign oil companies were preparing to resume operations in the region after a prolonged suspension due to security concerns linked to the Iran conflict. According to the spokesman, Peshwa Hawrami, Gulf Keystone resumed production on Wednesday, while the U.S. company HKN is expected to restart production at the Atrush field on Sunday. Hawrami added that Norwegian firm DNO plans to resume production at the Tawke and Peshkabir fields by Friday, while another U.S. company, Hunt Oil, is scheduled to restart operations on July 8. The announcement follows talks between the federal government and the KRG that resulted in an agreement to develop joint plans to protect oil companies and facilities in the Kurdistan region from future attacks. Security guarantees were reportedly among the key demands raised by foreign oil companies during Baghdad’s latest effort to increase northern oil exports through Turkey.

Sources cited in this section include: INA, al-Ghad, ISHM archive, al-Mirbad, al-Sumaria.

Derived from firsthand accounts and Iraq-based Arabic and Kurdish news sources, the Iraq Security and Humanitarian Monitor is a free publication of the Enabling Peace in Iraq Center.

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