Key Takeaways:

• POLITICS: Zaidi Gets Warm Welcome from Trump During White House Visit Rebuked by Militias – On July 13, Prime Minister Ali al-Zaidi arrived in Washington accompanied by the ministers of Oil, Finance, Electricity, Trade, and Foreign Affairs, along with nearly two dozen lawmakers and senior government officials. The following day, Zaidi met with President Donald Trump at the White House for talks focused on expanding economic ties, particularly in the energy sector, and advancing the transition from a security-centered relationship to one based on economic partnership. Trump praised Zaidi, saying he expects him “to be a great leader in the Middle East, beyond Iraq. His influence is going to spread all throughout the Middle East.” Zaidi’s office said the visit aims to “strengthen economic and development partnerships, attract investment, and expand the role of U.S. companies in implementing infrastructure projects.” The talks also addressed militia disarmament, with Zaidi telling reporters that armed factions would have no justification to exist outside state control after the remaining U.S. military personnel leave by September 30. Trump likewise emphasized that the bilateral relationship no longer needs to center on military cooperation. “We have a whole big relationship where we don’t need the military,” he said. In addition to meetings on Capitol Hill, Zaidi and his ministers held separate meetings with Secretary of Defense Pete Hegseth and Secretary of the Treasury Scott Bessent, while Iraq’s Oil and Electricity ministers met with Deputy Secretary of Energy James Danly. The talks covered the future of bilateral security and counterterrorism cooperation, banking reforms, and energy cooperation. The visit drew strong criticism from the Islamic Resistance of Iraq (IRI), which argued that it comes amid what it described as American and Israeli “crimes” against “innocent civilians in Iraq, Iran, Lebanon, Yemen, and Palestine.” The IRI, an umbrella group for several Iran-backed Iraqi militias, said its support for the government’s anti-corruption campaign “does not mean granting it an open-ended mandate in all of its policies.” The group also criticized potential business agreements that could emerge from the visit, saying it opposes projects “that mortgage the future of generations to companies that are directly or indirectly linked to the interests of the occupation” or that conduct business with Israel. more…
• SECURITY & HUMANITARIAN: Eight Drones Shot Down Over Erbil; Syria Intercepts Weapons Being Smuggled from Iraq to Hezbollah – On July 15, the Counter-Terrorism Service of the Kurdistan region said that a wave of eight one-way attack drones entered the airspace over the city of Erbil in an attack that lasted approximately half an hour. Global Coalition forces successfully shot down the drones, and there were no reports of casualties. Prime Minister Zaidi condemned the attack and ordered security agencies to work with their Kurdistan region counterparts to investigate the incident and prevent future attacks. Meanwhile, a spokesman for the Kataib Sayyid al-Shuhada militia said the group and fellow IRI factions were not responsible for launching the drones at Erbil. On July 16, the Syrian Interior Ministry said that it intercepted a large shipment of advanced weapons being smuggled into the country through the Iraqi border. The weapons, which were reportedly destined for Hezbollah in Lebanon, included long-range missiles, quadcopter drones, and anti-tank missiles. Iraqi news sources said the weapons had been concealed inside a tanker carrying fuel oil for export. The tanker was intercepted after reaching the al-Tanf customs checkpoint on its route to Baniyas on the Mediterranean coast. In other developments, on July 13, three one-way attack drones struck a camp for Iranian Kurdish refugees in the Pirmam district of Erbil province. On July 15, an unidentified drone crashed within the perimeter of Iraq’s Grand Faw Port. Initial reports suggest the drone, which appeared to bear a handwritten note in Farsi, was headed toward Kuwait before crashing. On July 15, Iraq’s Justice Ministry said it had significantly reduced overcrowding in the country’s prison system from more than 300% last year to between 100% and 150% by rehabilitating five major correctional facilities. more…
• ECONOMY & CLIMATE: State-Owned Banks to Merge; Water Reserves Rebound; Payments to KRG Resume; Khor-Mor Halts Gas Production – On July 11, informed government sources said the Finance Ministry plans to restructure and merge several state-owned financial institutions in an effort to address chronic capacity and management problems and modernize the banking sector. The plan reportedly envisions merging Rafidain and Rasheed into a single bank, as well as combining the Agricultural and Industrial banks into one institution, among other measures. On July 12, Water Resources Minister Muthanna al-Temimi said that Iraq’s water reserves have improved, reaching 34 billion cubic meters—a significant recovery from last summer’s low of just five billion cubic meters. Temimi noted, however, that current reserves are still only about half of what they were in 2021 and called on provincial governments to cooperate on water management, stressing that all provinces must adhere to their allocated water shares. On July 13, the federal government transferred IQD 841 billion to the Kurdistan Regional Government (KRG) to pay public-sector salaries for June. The payment was IQD 120 billion less than the previous transfer issued in May because the federal government deducted that amount to compensate for the KRG’s failure to remit the federal treasury’s share of non-petroleum revenue generated during the corresponding month. On July 16, Dana Gas initiated a temporary shutdown of production operations at the Khor-Mor gas field as a precautionary measure amid “credible security threats” and rising regional tensions. The disruption resulted in the loss of approximately 2,500 megawatts of electricity generation capacity. 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: Zaidi Gets Warm Welcome from Trump During White House Visit Rebuked by Militias

On July 12, several news outlets published court documents indicating that an Iraqi court had issued an arrest warrant and a travel ban against former independent lawmaker Basim Khashan. Khashan, who represented Muthanna province in parliament, reportedly faces 46 charges related to abuse of office and soliciting bribes. The documents, dated January 26, 2026, also show that the court ordered the freezing of all of Khashan’s assets. In social media posts, Khashan—an outspoken critic of Supreme Judicial Council President Faeq Zaidan—dismissed the republication of the months-old documents as a smear campaign intended to divert attention from his continued allegations that senior members of the judiciary helped cover up the embezzlement scandal known as the “heist of the century.” Khashan has specifically accused Zaidan and Judge Dhiya Jafar of the Anti-Corruption Investigation Court, whom former Integrity Commission chairman Haider Hanoun previously accused of concealing key evidence in the case.

On July 12, Iraqi Foreign Minister Fuad Hussein visited Riyadh for talks with Saudi officials, accompanied by Iraqi intelligence chief Hameed al-Shatri and National Security Adviser Qasim al-Aboudi. A joint statement issued after the meeting with Saudi Foreign Minister Faisal bin Farhan stressed the importance of respecting the sovereignty of all states and fostering good-neighborly relations. Iraq also reaffirmed that it rejects the use of its territory or airspace to launch attacks against Saudi Arabia or any other regional country – a reference to militia attacks targeting Saudi Arabia and other Gulf states during the Iran war. The talks also covered cooperation in the security and energy sectors, as well as Iraq’s interest in expanding trade and investment ties with Saudi Arabia.

On July 12, the Islamic Resistance of Iraq (IRI) said it rejects Prime Minister Ali al-Zaidi’s visit to Washington, arguing that it comes amid what it described as American and Israeli “crimes” against “innocent civilians in Iraq, Iran, Lebanon, Yemen, and Palestine.” The IRI, an umbrella group representing several Iran-backed Iraqi militias, said its support for the government’s anti-corruption campaign “does not mean granting it an open-ended mandate in all of its policies.” The group also criticized potential business agreements that could emerge from the visit, saying it opposes projects “that mortgage the future of generations to companies that are directly or indirectly linked to the interests of the occupation” or conduct business with Israel. The statement further warned “against replacing military occupation with a more dangerous form of economic occupation” and insisted that any agreements signed during the visit should be submitted to the Iraqi parliament for ratification.

On July 13, the Supreme Judicial Council said that authorities have recovered a stash of gold bars totalling 375 kilograms in connection with the major corruption case involving former Deputy Oil Minister Adnan al-Jumaili. The gold stash was recovered through cooperation with authorities in the Kurdistan regional government (KRG), according to a statement by the judiciary. The gold was subsequently handed over to the relevant authorities within the Central Bank of Iraq, the statement explained. 

On July 13, Iraqi Prime Minister Ali al-Zaidi arrived in Washington on his first official visit since taking office. His delegation included the ministers of Oil, Finance, Electricity, Trade, and Foreign Affairs, along with nearly two dozen lawmakers and other senior government officials. The following day, Zaidi met with President Donald Trump at the White House for talks focused on expanding economic ties, particularly in the energy sector, and advancing the transition from a security-centered relationship to one based on economic partnership. Trump praised Zaidi, saying he expects him “to be a great leader in the Middle East, beyond Iraq. His influence is going to spread all throughout the Middle East.” Zaidi’s office said the visit aims to “strengthen economic and development partnerships, attract investment, and expand the role of U.S. companies in implementing infrastructure projects,” particularly in the energy sector. The talks also addressed the issue of militia disarmament. Speaking to reporters, Zaidi said armed factions would have no justification to continue operating outside state control once the remaining U.S. military personnel leave Iraq on September 30. Trump similarly emphasized that the bilateral relationship no longer needs to center on military cooperation. “We have a whole big relationship where we don’t need the military,” he said. “We’re there to help them. We’re there to protect them if need be. But we don’t think that’s going to be necessary.” The planned withdrawal, agreed to under a 2024 bilateral agreement, was reaffirmed by the Pentagon following Zaidi’s meeting with Defense Secretary Pete Hegseth. According to Zaidi’s office, the Pentagon talks also covered the future of bilateral security and counterterrorism cooperation, as well as continued U.S. support for Iraqi security forces. Zaidi and his ministers also held separate meetings with the Secretary of Treasury Scott Bessent and Deputy Secretary of Energy James Danly to discuss banking reforms and energy cooperation.

On July 16, the Integrity Commission said that an anti-corruption court has sentenced lawmaker Mohammed Nasir al-Karbouli to two years in prison after finding guilty of soliciting $50,000 in bribes. 

Sources cited in this section include: al-Sumaria, al-Mirbad, Baghdad Today, social media, ISHM archive, Shafaq, Iraq’s Oil Ministry, Iraq Observer, Kurdistan24, Iraqi PM’s office, AP, State Department. 

SECURITY & HUMANITARIAN: Eight Drones Shot Down Over Erbil; Syria Intercepts Weapons Being Smuggled from Iraq to Hezbollah

On July 13, security officials in the Kurdistan region of Iraq said that three one-way attack drones struck a camp for Iranian Kurdish refugees in the Pirmam district of Erbil province. The early morning attack did not result in casualties, the officials added. 

On July 14, a spokesman for the Kataib Hezbollah militia said that “Islamic Resistance” factions will participate “immediately and decisively” in fighting if the U.S. restarted its war on Iran. In a statement posted online, the Iran-backed militia also threatened retaliation against the governments of Syria and the Gulf states, citing their alleged persecution of Shia communities in those countries.

On July 15, security sources in Basra said that an unidentified drone crashed within the perimeter of Iraq’s Grand Faw Port on the Gulf shore. Initial indicators suggest the drone, which appeared to bear a handwritten note in Farsi, was moving in the direction of Kuwait before the crash, the sources added. The incident, which happened in an open area, did not result in casualties or significant material damage. 

On July 15, Iraq’s Justice Ministry said it has significantly reduced overcrowding in the country’s prison system by rehabilitating five major correctional facilities. Ministry spokesman Murad al‑Saadi said the ministry refurbished the five prisons and restored them to full capacity, reducing occupancy rates from more than 300% last year to between 100% and 150%, with efforts continuing to bring occupancy below full capacity. Saadi acknowledged that Iraq’s fiscal crisis has delayed some prison infrastructure projects and noted that the recent transfer of thousands of ISIS detainees from Syria has placed additional pressure on the system, with one facility now fully occupied by transferred inmates.

On July 15, the counter-terrorism service of the Kurdistan region said that a wave of eight one-way attack drones entered the airspace over Erbil in an attack that lasted approximately half an hour. Global coalition forces successfully intercepted and shot down the eight drones and there were no reports of casualties, the statement added, without providing information about the origin of the drones. Prime Minister Zaidi condemned the attack on Erbil, calling it a desperate attempt to destabilize the country. Zaidi added that he ordered security agencies to work with their counterparts in the Kurdistan region to investigate the incident and prevent future attacks. Meanwhile, a spokesman for the Kataib Sayyid al-Shuhada militia said the group and fellow “Islamic Resistance” factions were not responsible for launching the drones at Erbil. 

On July 16, the Syrian Interior Ministry said that it intercepted a large shipment of advanced weapons being smuggled into the country through the Iraqi border. The weapons, which were destined for Hezbollah in Lebanon, included long range missiles, quadcopter drones, and anti-tank missiles, the ministry added. Iraqi news sources revealed that the weapons had been hidden inside a tanker carrying fuel oil for export. The tanker was intercepted after reaching the al-Tanf customs checkpoint on its route to Baniyas on the Mediterranean.

Sources cited in this section include: al-Sumaria, Shafaq, Rudaw, AP, ISHM archive, Kurdistan24, INA, Sana, al-Mada.

ECONOMY & CLIMATE: State-Owned Banks to Merge; Water Reserves Rebound; Payments to KRG Resume; Khor-Mor Halts Gas Production

On July 11, Shafaq reported, citing an informed government source, that the Finance Ministry plans to restructure and merge several state‑owned financial institutions in an effort to address chronic capacity and management problems and modernize the banking sector. According to the official, the plan envisions merging the Rafidain and Rasheed banks into a single entity, as well as combining the Agricultural and Industrial banks into one institution, among other measures. The plan, which the Finance Minister reportedly discussed in detail with Prime Minister Ali al‑Zaidi, includes a two‑year timeline to complete the mergers and restructuring steps. The Iraqi government had previously contracted accounting and advisory company Ernst and Young in 2023 to help reform and modernize the country’s banking sector, starting with the state-owned Rafidain Bank. The government said at the time that the firm presented an eight-month plan involving a comprehensive assessment of the bank’s operations and introducing structural reforms and modern technologies to create a bank “capable of meeting the demands of contemporary global banking conditions.”  

On July 12, Water Resources Minister Muthanna al‑Temimi said that Iraq’s water reserves have improved, reaching 34 billion cubic meters — a significant recovery from last summer’s low of just five billion cubic meters. Temimi noted, however, that current reserves are still only about half of what they were in 2021, when volumes stood at roughly 60 billion cubic meters. He stressed that cooperation among stakeholders across the provinces is essential to ensure sufficient water supplies for the upcoming crop season. Specifically, Temimi called on provincial governments to cooperate with one another on water management, stressing that all provinces need to adhere to their allocated shares of water.

On July 13, the federal government sent IQD 841 billion to the Kurdistan Regional Government (KRG) to pay public‑sector salaries for the month of June, according to sources in the KRG Finance Ministry. This payment is IQD 120 billion less than the previous transfer issued in May, as the federal government deducted that amount to compensate for the KRG’s failure to remit the federal treasury’s share of non‑petroleum revenue generated in the Kurdistan region during the corresponding month. The source did not address the gap in June, when reporting indicates the federal government did not send any funds to the KRG. The transfer and deduction come after Deputy Speaker of Parliament Adnan Feyhan had called on the federal government to suspend all transfers to the KRG until a full settlement is reached regarding revenue remittances owed to Baghdad. 

On July 13, Iraq’s Minister of Communications, Mustafa Sanad, gave instructions to ban all electronic platforms used for gambling and online betting. Sanad said the move aims to prevent the rise of online gambling addiction and the economic and social problems that arise from its use. At the same time, Sanad said the Communications Ministry has lifted a 2024 ban on the movie data website, IMDb.

On July 16, Dana Gas said that it initiated a temporary shutdown of production operations at the Khor-Mor gas field in the Kurdistan region as a precautionary measure amid “credible security threats” and rising regional tensions. The disruption, which followed the July 15 drone attack on Erbil, resulted in the loss of 2,500 megawatts of power generation capacity, according to the KRG’s Ministry of Electricity. 

Sources cited in this section include: Shafaq, ISHM archive, Rudaw, INA, Baghdad Today, Mawazin.

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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