Key Takeaways:

• POLITICS: PUK-New Generation Alliance Formalized; PM’s Allies Criticize Militarization of Anti-Corruption Sweep; Millions Attend Khamenei Funeral Events in Iraq – On July 2, the leaders of the New Generation (NG) party and the Patriotic Union of Kurdistan (PUK) signed an agreement formalizing their political alliance, which aims to break the deadlock with the rival Kurdistan Democratic Party (KDP) that has delayed government formation since the October 2024 regional elections. The new alliance, called the Coalition for Balance and Revival, creates a bloc of 38 lawmakers, just one seat short of the KDP’s 39 in the 100-member regional legislature. PUK leader Bafel Talabani and NG leader Shaswar Abdulwahid said the alliance aims to restore political balance by negotiating as a unified front and securing 50% of senior positions in the new cabinet. On July 7, Ammar al-Hakeem, leader of the Hikma Movement, criticized the use of heavy-handed military tactics during the June 28 anti-corruption sweep that led to the arrest of dozens of government officials. Hakeem argued that “dealing with a member of parliament or someone connected to a political or corruption case” should differ from dealing with a “terrorist.” He said such individuals could be simply summoned or detained through civilian law enforcement without the need to deploy tanks in the streets. Other Coordination Framework leaders reportedly echoed his criticism during a meeting on Tuesday. On July 7, a large Iranian delegation led by President Masoud Pezeshkian arrived in Najaf to participate in funeral processions held in Iraq’s holy cities of Najaf and Karbala for Iran’s late Supreme Leader, Ali Khamenei. Pezeshkian was received at Najaf International Airport by Prime Minister Ali al-Zaidi, who joined the processions alongside senior Iraqi officials and political leaders. Large crowds attended the events, which a government spokesman claimed drew an estimated three million participants. In other developments, on July 9, security forces arrested Hussein Talib al-Fadhli, director general of the state-owned Oil Products Distribution Company, on corruption charges. Fadhli is the third senior Oil Ministry official arrested on corruption charges in the past six weeks, following the arrests of Deputy Oil Ministers Adnan al-Jumaili and Ali Maarij. more…
• SECURITY & HUMANITARIAN: Parliament Presents Bill to Fund Air Defense Procurement as Missed Payments Threaten Key Acquisition Deal – On July 6, Iraq’s parliament conducted a first reading of a bill that would allocate additional funding to improve air defense capabilities. In a statement, parliament cited rapidly evolving aerial threats—especially drones, missiles, and long-range weapons—as the rationale for the legislation. If approved, the bill would establish the legal and financial framework to “purchase, operate, and maintain air-defense systems, as well as to train national personnel, transfer technology, and localize its production,” the statement added, without specifying a funding target. The development coincides with reports that South Korean officials recently informed Baghdad that a 2024 agreement worth $2.8 billion to procure advanced South Korean air defense systems could collapse because of missed payments. In other developments, on July 4, a junior officer in the Counter-Terrorism Service (CTS) was killed during clashes with suspected ISIS militants near the Dibis district of Kirkuk province. On July 5, authorities in Erbil arrested Khorshid and Haider Harki, two leaders of the restive Harki tribe, on charges including murder, incitement of violence against security forces, destruction of property, and sabotaging economic infrastructure and obstructing government operations. The charges appear to stem from incidents in November 2025, when clashes between Harki tribe protesters and security forces outside the Lanaz oil refinery near Erbil left at least two people dead and ten others wounded. On July 9, a drone strike targeted a camp belonging to an Iranian Kurdish opposition group northeast of Erbil. more…
• ECONOMY & CLIMATE: Iraq Commissions Study on New Oil Export Routes, Signs New Oil Field Development Agreements – On July 4, the Iraqi government authorized the Oil Ministry to sign a preliminary agreement with a consortium led by UT Capital and Chevron to study potential pipeline routes for exporting Iraqi crude oil. The study will compare the technical and financial feasibility of two proposed routes: Basra–Haditha–Ceyhan via Kirkuk and Basra–Haditha–Baniyas. The Oil Ministry will also sign a consulting agreement with KBR covering the Basra–Haditha segment of the broader strategic pipeline diversification project. On July 5, the Basra Oil Company and Halliburton signed a five-year contract to develop and operate the Bin Omar and Sindbad oil fields in Basra, following negotiations that began in March 2025. Oil Minister Basim Khudeir said the project aims to raise production capacity at Bin Omar to 150,000 barrels per day (bpd) and at Sindbad to 100,000 bpd. He added that Iraq expects to produce 300 million cubic feet per day (cf/d) of gas from Bin Omar—under a separate contract with local company Raban al-Safina—and 260 million cf/d from Sindbad. On July 9, Iraq’s state-owned North Oil Company signed an agreement with U.S. energy company HKN to develop the Himreen oil field, located between Kirkuk and Salah ad-Din provinces. The deal targets peak production of 140,000 bpd—significantly higher than previously reported—along with 40 million cf/d of natural gas for power generation and reservoir reinjection. more…

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: PUK-New Generation Alliance Formalized; PM’s Allies Criticize Militarization of Anti-Corruption Sweep; Millions Attend Khamenei Funeral Events in Iraq

On July 2, the leaders of the New Generation (NG) party and the Patriotic Union of Kurdistan (PUK) signed an agreement formalizing their political alliance, which aims to break the deadlock with the rival Kurdistan Democratic Party (KDP) that has delayed government formation since the October 2024 regional elections. The new alliance, called the Coalition for Balance and Revival, creates a parliamentary bloc of 38 lawmakers. The PUK holds 23 seats and New Generation 15, while the KDP controls 39 seats in the 100-member regional legislature. PUK leader Bafel Talabani and NG leader Shaswar Abdulwahid said the alliance aims to reform governance in the Kurdistan region and restore political balance by negotiating as a unified front during government formation talks. Backed by their near parity with the KDP, the PUK and NG are seeking 50% of senior positions in the new cabinet, arguing that such an arrangement would reflect a genuine partnership. KDP officials, however, have said the party does not recognize the PUK–NG alliance as a single entity for government formation purposes and continues to regard the PUK as holding only 23 seats in parliament.

On July 7, Ammar al-Hakeem, leader of the Hikma Movement within the Coordination Framework, criticized the use of heavy-handed military tactics during the June 28 anti-corruption sweep that led to the arrest of dozens of government officials. In televised remarks, Hakeem argued that “dealing with a member of parliament or someone connected to a political or corruption case” should differ from dealing with “a terrorist who possesses weapons or explosive belts.” He said such individuals could be summoned to court or detained through civilian law enforcement, without the need to deploy tanks in the streets. Hakeem added that some of the operations “used methods that were not actually necessary to achieve their objectives.” Other Coordination Framework leaders reportedly echoed his criticism during a meeting on Tuesday.

On July 7, a large Iranian delegation led by President Masoud Pezeshkian arrived in Najaf to participate in funeral processions for Iran’s late Supreme Leader, Ali Khamenei, who was killed in a U.S.-Israeli strike at the start of the Iran war. Pezeshkian was received at Najaf International Airport by Iraqi Prime Minister Ali al-Zaidi, who joined the processions alongside senior Iraqi officials and political leaders. The funeral procession first stopped at the Imam Ali Shrine in Najaf before traveling to Karbala and then returning to Iran for burial in Mashhad. Large crowds attended the events, which a government spokesman claimed drew an estimated three million participants. Footage showed mourners carrying portraits of Khamenei, Iranian flags, and the flags of allied militia groups such as Kataib Hezbollah while chanting anti-American and anti-Israeli slogans. Footage also confirms that General Esmail Qaani, the head of the Quds Force in the Islamic Revolutionary Guard Corps, was also in Iraq to attend the ceremonies. 

On July 9, security forces arrested Hussein Talib al-Fadhli, the director general of the state-owned Oil Products Distribution Company, on corruption charges, security sources told Shafaq News. The sources said Fadhli, who is affiliated with Ammar al-Hakeem’s Hikma Movement, was scheduled to be sworn in as a member of parliament on Thursday, replacing a Hikma lawmaker appointed to an executive position. A Hikma spokesman said the party supports the government’s anti-corruption campaign and stressed that legal responsibility for any alleged wrongdoing rests with the individual concerned and does not extend to the political or social institution to which they belong. Fadhli is the third senior Oil Ministry official to be arrested on corruption charges over the last six weeks, following the arrests of Deputy Ministers Adnan al-Jumaili and Ali Maarij. 

Sources cited in this section include: Peregraf, ISHM archive, Ultra Iraq, Baghdad Today, Shafaq, Iraqi PM’s office, INA.

SECURITY & HUMANITARIAN: Parliament Presents Bill to Fund Air Defense Procurement as Missed Payments Threaten Key Acquisition Deal

On July 4, Iraq’s Joint Operations Command said that a junior officer in the Counter-Terrorism Service (CTS) was killed during clashes with suspected ISIS militants near the Dibis district of Kirkuk province. A suspected ISIS militant was also killed by Iraqi forces, who had been deployed to inspect the site of an earlier Iraqi airstrike targeting ISIS hideouts in the area.

On July 5, Erbil police said authorities had arrested Khorshid and Haider Harki, two leaders of the Harki tribe, on charges including murder, incitement of violence against security forces, and the destruction of public and private property. In a statement, police said the charges also include sabotaging economic infrastructure and obstructing government operations in the Khabat district, west of Erbil. The charges appear to stem from incidents in November 2025, when clashes between Harki tribe protesters and security forces outside the Lanaz oil refinery near Erbil left at least two people dead and ten others wounded. At the time, the KRG Interior Ministry described the protesters as “rioters” acting on “domestic and external instigations” and linked the unrest to broader “attempts at sabotage,” including an attack on the Khor Mor gas field in Sulaymaniyah. The ministry also accused the protesters of firing at civilian traffic and blocking fuel trucks on the Erbil–Gwer road. Khorshid Harki later said the dispute had been resolved through negotiations with the Interior Ministry. That episode followed another incident in July 2025, when members of the Harki tribe engaged in deadly armed clashes with security forces that reports indicated were related to land disputes.

On July 6, Iraq’s parliament conducted a first reading of a bill presented by the defense and security committee that aims to allocate additional funding to improve Iraq’s air defense capabilities. In a statement, parliament cites the rapidly evolving aerial threats—especially drones, missiles, and long‑range weapons—as the rationale for pushing the bill. If approved, the legislation will provide the legal and financial framework needed to “purchase, operate, and maintain air‑defense systems, as well as to train national personnel, transfer technology, and localize its production,” the statement added, without mentioning a specific funding target. The news coincides with reports that South Korean officials had formally informed Baghdad that a 2024 agreement to procure advanced South Korean air defense systems could collapse due to missed payments. According to lawmaker Falih al-Khazali, Iraq made an initial payment of $500 million under the $2.8 billion contract but failed to make additional payments due in 2025. Khazali said South Korean officials warned that the air defense batteries designated for Iraq could be sold to other buyers if Baghdad does not pay the remaining balance. In 2024, Iraq awarded a $2.8 billion contract to South Korean defense manufacturer LIG Nex1 to supply the Iraqi military with eight batteries of the M-SAM II (Cheongung II) air defense system. Iraq was set to become the fourth operator of the medium-range system after South Korea, Saudi Arabia, and the UAE, with deliveries scheduled to begin in early 2026.

On July 9, local sources in Erbil said that a drone strike targeted a camp for an Iranian Kurdish opposition group located in the northeastern parts of the province. The sources did not specify the targeted group, and there were no immediate reports of casualties.   

Sources cited in this section include: INA, Peregraf, ISHM archive, Iraq’s parliament, Shafaq, Mawazin.

ECONOMY & CLIMATE: Iraq Commissions Study on New Oil Export Routes, Signs New Oil Field Development Agreements

On July 4, the Iraqi government authorized the Oil Ministry to sign a preliminary agreement with a consortium led by UT Capital and Chevron to study potential pipeline routes for exporting Iraqi crude oil. The consortium, which also includes Qatar’s UCC, will compare the technical and financial feasibility of two proposed routes: Basra–Haditha–Ceyhan via Kirkuk and Basra–Haditha–Baniyas. The Oil Ministry will also sign a consulting agreement with KBR covering the Basra–Haditha segment of the broader strategic pipeline diversification project. In related developments, a delegation of senior Iraqi officials from the Oil and Foreign ministries held talks with their Turkish counterparts in Ankara on energy cooperation and the future of the Iraq–Turkey Pipeline treaty, which is set to expire at the end of the month. Iraqi officials said they expect to sign an interim technical agreement that would allow exports through the pipeline to continue while the two sides negotiate a new treaty, which they hope to conclude within 12 months of the current agreement’s expiration.

On July 5, the Basra Oil Company and Halliburton signed a five-year contract to develop and operate the Bin Omar and Sindbad oil fields in Basra, following negotiations that began in March 2025. Speaking at the signing ceremony, Oil Minister Basim Khudeir said the project aims to raise production capacity at Bin Omar to 150,000 barrels per day (bpd) and at Sindbad to 100,000 bpd. He added that Iraq expects to produce 300 million cubic feet per day (cf/d) of gas from Bin Omar – under a separate contract with local company Raban al-Safina – along with 260 million cf/d from Sindbad. Previous reporting indicated that Iraq had awarded the Sindbad field to China’s United Energy Group during the fifth oil licensing round in 2018. It is unclear whether United Energy Group remains involved in the development of the Sindbad field. 

On July 7, Iraqi oil officials said the country has been producing between 2 million and 2.5 million barrels per day (bpd) of crude oil. According to Oil Ministry spokesman Saleem al-Rikabi, output remains uneven and fluctuates depending on the pace of exports and shipping conditions through the Strait of Hormuz. The remarks suggest that production has largely plateaued in recent weeks. Iraq was reportedly producing about 2.1 million bpd around June 23. However, production could begin rising again soon. A July 3 correspondence between the Basra Oil Company and operating companies instructed them to restore production and pumping volumes at the North Rumaila, West Qurna-1, and Ratawi fields to their normal pre-war levels.

On July 9, Iraq’s state-owned North Oil Company signed an agreement with U.S. energy company HKN to develop the Himreen oil field, located between Kirkuk and Salah ad-Din provinces. The deal targets peak production of 140,000 barrels per day (bpd), along with 40 million cubic feet per day (cf/d) of natural gas, the Oil Ministry said in a statement. The ministry added that the gas will be used for electricity generation to support field operations and for reinjection to maintain reservoir pressure. Previous reporting on the preliminary agreement signed last year indicated that the project aimed to increase the field’s production from approximately 25,000 bpd to a plateau of 60,000 bpd, along with up to 50 million cf/d of natural gas.

Sources cited in this section include: Reuters, INA, Iraq’s Oil Ministry, ISHM archive, Rudaw, Ultra Iraq.

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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