Key Takeaways:

• POLITICS: Zaidi Signs New Cooperation Agreements in Tehran Days After Landmark U.S. Visit – On July 23, Prime Minister Ali al-Zaidi arrived in Tehran on his first official visit to Iran, where he was received at the airport by President Masoud Pezeshkian. Zaidi and Pezeshkian chaired expanded talks involving the Iraqi delegation—which included the ministers of Electricity and Foreign Affairs, along with several deputy ministers and other senior officials—and their Iranian counterparts. The visit, which came days after Zaidi’s return from what many considered a successful White House meeting, focused on containing regional conflicts and strengthening bilateral cooperation in the industry and transportation sectors. The two sides signed four agreements covering cross-border transportation of goods, the construction of a railway linking Kermanshah to Baghdad via Khosravi and Khanaqin, a city-twinning arrangement between Baghdad and Tehran, and cooperation in human capital development and management. In other developments, on July 19, Zaidi visited Doha for talks with the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani, that focused on addressing regional tensions and safeguarding freedom of navigation through the Strait of Hormuz. On July 19, authorities seized cash, gold, luxury cars, and apartments belonging to current and former members of parliament during an anti-corruption raid in Baghdad. On July 21, Turkish Minister of Transport and Infrastructure Abdulkadir Uraloğlu held talks with Zaidi focused on advancing Iraq’s Development Road project. On July 22, Zaidi and German Chancellor Friedrich Merz discussed strengthening bilateral cooperation on trade, German investment in Iraq, and migration. On July 23, an anti-corruption court sentenced lawmaker Hasanain al-Khafaji to two years in prison after finding him guilty of extortion. more…
• SECURITY & HUMANITARIAN: U.S. Soldier Killed as Iranian Drones and Missiles Target Kurdistan Region; Navy Chief Faces Dismissal; Counter-Terrorism Commander Replaced – Between July 17-22, Iran launched a series of drone and missile attacks on the Kurdistan region. The attacks targeted the U.S. consulate and military base near Erbil International Airport, along with several camps housing members of Iranian Kurdish opposition groups. The attacks killed at least nine people and wounded 17 others, most of them Iranian Kurds. A U.S. soldier was also killed during a controlled detonation of a crashed drone. Coalition air defenses shot down more than a dozen one-way attack drones over Erbil during the period. On July 19, Iraq’s parliament endorsed the recommendations of its Defense and Security Committee to dismiss three senior naval commanders over a recent maritime border incident in which Kuwaiti sailors killed an Iraqi fisherman and detained several others. In its report to parliament, the committee recommended dismissing Navy Commander General Mazin Abdulwahid, as well as the commanders of Naval Operations and the Umm Qasr Naval Base, citing their failure to prevent the incident. Between July 22-23, Prime Minister Zaidi appointed Lieutenant General Zaid Hoshi al-Mousawi and Major General Mohammed Qasim al-Fahad as the new commanders of the Counter-Terrorism Service and the Federal Police, respectively. Zaidi also appointed General Falah Shaghati to head the Interior Ministry’s Intelligence Agency and former Interior Minister Abdulamir al-Shammari as director of the Office of the Commander in Chief, an entity abolished by former Prime Minister Haider al-Abadi in 2014. Meanwhile, Zaidi appointed Brigadier General Osama Saad Hasan as commander of the Special Division responsible for security in the Green Zone. In other developments, on July 19, Anbar police arrested two suspects in connection with the weapons smuggling operation disrupted by Syrian authorities last week. On July 21, security forces raided a workshop in Baghdad used to manufacture FPV drones and arrested three suspects. more…
• ECONOMY & CLIMATE: Iraq Signs Major Energy Deals With U.S. Firms; Washington to Ease Banking Restrictions; Oil Companies Suspend Production; Electricity Shortages Spark Protests – On July 17, Iraq signed a series of agreements with U.S. companies worth an estimated $60 billion, U.S. Energy Secretary Chris Wright announced after meeting with Prime Minister Zaidi. Among the most significant deals, Chevron will undertake a project to rehabilitate the oil export pipeline extending to the Syrian port of Baniyas, while ConocoPhillips will acquire a stake in BP’s project to redevelop the Kirkuk oil fields. On July 18, the Central Bank of Iraq and the U.S. Treasury Department reached an agreement paving the way for seven restricted Iraqi banks to resume using correspondent banking relationships. Between July 20-21, Gulf Keystone Petroleum and ShaMaran Petroleum announced temporary suspensions of production at the Sheikhan, Atrush, and Sarsang oil fields they operate in the Kurdistan region as a precaution amid rising security risks. On July 21, at least five civilians were reportedly injured as security forces attempted to disperse protests over worsening electricity shortages in Najaf province. Reports indicate that most provinces are receiving an average of only six to ten hours of electricity per day. Electricity officials said the country faces a large gap between supply and demand, with available generation at 21,600 megawatts against peak demand approaching 55,000 megawatts. In other developments, on July 21, Iraq concluded this year’s wheat harvest, with farmers delivering approximately 4.8 million tons of grain—enough to cover the country’s wheat needs until the next harvest season. 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 Signs New Cooperation Agreements in Tehran Days After Landmark U.S. Visit

On July 19, news reports citing security sources said that authorities have confiscated cash, gold, and dozens of luxury cars during a raid on an upscale residential compound in Baghdad. Authorities also seized and sealed several luxury apartments during the raid, the sources added, noting that most of the seized property belongs to current and former members of parliament. This week, the Iraqi judiciary also recovered additional amounts of cash and gold in connection with the corruption case involving former senior Oil Ministry official Adnan al-Jumaili. The latest find includes IQD13 billion and $400,000 in cash, 40 gold bars, and five kilograms of other gold items.

On July 19, Iraqi Prime Minister Ali al-Zaidi visited Doha for talks with the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani. The discussions focused on strengthening bilateral relations and addressing regional tensions, with both sides emphasizing the importance of implementing the provisions of the U.S.-Iran memorandum of understanding to help restore regional stability and safeguard freedom of navigation through the Strait of Hormuz, according to a statement from Zaidi’s office. Zaidi also offered his condolences on the recent passing of the Emir’s father, the late Sheikh Hamad bin Khalifa Al Thani.

On July 21, Turkish Minister of Transport and Infrastructure Abdulkadir Uraloğlu visited Baghdad for talks with Prime Minister Ali al-Zaidi focused on advancing Iraq’s Development Road project. According to a statement from Zaidi’s office, the two discussed the need to establish clear financing and implementation mechanisms in order to set specific timelines for the project. Uraloğlu reaffirmed Turkey’s commitment to the initiative and emphasized the importance of beginning work on its core infrastructure. The statement added that Iraq and Turkey expect to sign several cooperation agreements in key sectors during Zaidi’s upcoming visit to Ankara.

On July 22, Prime Minister Ali al-Zaidi spoke with German Chancellor Friedrich Merz to discuss strengthening bilateral cooperation in trade, investment, and migration. Zaidi expressed his government’s interest in attracting additional German investment to Iraq and establishing a joint investment fund to support the development of Iraqi industries with German assistance, according to a statement from his office. Chancellor Merz reaffirmed Berlin’s support for Baghdad’s financial and economic reform efforts and invited Zaidi to visit Germany, the statement added.

On July 23, the Integrity Commission said that an anti-corruption court sentenced lawmaker Hasanain al-Khafaji to two years in prison after finding him guilty of extortion. Khafaji won his parliamentary seat in Baghdad as a member of former Prime Minister Mohammed al-Sudani’s coalition. His parliamentary immunity had previously been lifted after he was accused of demanding a $500,000 bribe from a real estate developer and pressuring the developer to grant a 40% stake in a development project to one of his staff members.

On July 23, Prime Minister Ali al-Zaidi arrived in Tehran on his first official visit to Iran, where he was received at the airport by Iranian President Masoud Pezeshkian. Following a meeting between the two leaders, Zaidi and Pezeshkian chaired expanded talks involving the Iraqi delegation—which included the ministers of Electricity and Foreign Affairs, along with several deputy ministers and other senior officials—and their Iranian counterparts. According to an Iraqi government spokesman, the visit focused on containing regional conflicts and strengthening bilateral cooperation in the industry and transportation sectors. The two sides concluded their talks by signing four agreements covering cross-border transportation of goods, the construction of a railway linking Kermanshah to Baghdad via Khosravi and Khanaqin, a city-twinning arrangement between Baghdad and Tehran, and cooperation in human capital development and management.

Sources cited in this section include: New Sabah, Peregraf, INA, Iraqi PM’s office, ISHM archive, al-Sumaria, +964.

SECURITY & HUMANITARIAN: U.S. Soldier Killed as Iranian Drones and Missiles Target Kurdistan Region; Navy Chief Faces Dismissal; Counter-Terrorism Commander Replaced

On July 17, a one-way attack drone struck a building in the Tasluja suburb of Sulaymaniyah, igniting a large fire and wounding three people. Footage from the scene appeared to show munitions cooking off, lending support to reports that the targeted building was being used as a munitions storage facility, though its affiliation remains unclear. Elsewhere in Sulaymaniyah province, security sources said that seven ballistic missiles fired from Iran struck three camps belonging to the Kurdistan Toilers’ Party, an Iranian Kurdish opposition group based in Iraqi Kurdistan. The strikes on camps in Zargawila, Qaradagh, and Qasardi reportedly killed eight members of the group. Meanwhile, the Kurdistan region’s Counter-Terrorism Service said Coalition forces shot down a total of 13 one-way attack drones over Erbil between Friday and Saturday. Some of the drones were reportedly heading toward Erbil International Airport and the nearby U.S. consulate compound. According to the U.S. Central Command, an American soldier was killed “during a controlled detonation of unexploded ordnance” from one of the Iranian drones.  In a subsequent incident on Sunday, a one-way attack drone struck a camp belonging to the Kurdistan Freedom Party (PAK), another Iranian Kurdish opposition group, in Dar-Shukran, north of Erbil, wounding eight members of the group, four of them seriously. The attacks continued on Tuesday, with five more missiles targeting the same PAK camp. A source with the group said all projectiles were intercepted before reaching their target. This was followed on Wednesday by a missile attack on a camp for the Toilers’ Party in the Alanah region of Erbil that left at least six people injured. On the same day, Global Coalition air defenses reportedly shot down “several” additional one-way attack drones over Erbil.

On July 19, Iraq’s parliament endorsed the recommendations of its Defense and Security Committee to dismiss three senior naval commanders over a recent maritime border incident in which Kuwaiti sailors killed an Iraqi fisherman and detained several others. In its report to parliament, the committee recommended the dismissal of Navy Commander General Mazin Abdulwahid, as well as the commanders of Naval Operations and the Umm Qasr Naval Base, citing their failure to prevent the incident.

On July 19, news reports citing security sources said that Anbar police arrested two suspects in connection with the weapons smuggling operation disrupted by Syrian authorities last week. According to the sources, the two suspects—the tanker driver and another individual—were each paid $50,000 by an armed faction to transport the weapons across the Syrian border for delivery to Hezbollah in Lebanon. The sources identified the suspects as Salih Mohammed Salih and Hadi Sallal al-Jabir but did not identify the armed faction that allegedly recruited them.

On July 21, Iraq’s National Security Service said its forces raided a workshop in Baghdad used to manufacture drones and arrested three suspects. Authorities recovered 25 partially assembled first-person-view (FPV) drones, along with specialized tools, carbon-fiber components, and other materials used in their manufacture. According to the National Security Service, the drones were capable of carrying small explosive payloads. The agency did not disclose the workshop’s exact location or provide identifying information about the suspects.

On July 22, news reports citing informed sources said that Prime Minister Ali al-Zaidi had appointed new commanders for the Counter-Terrorism Service (CTS) and the Federal Police. According to the reports, Lieutenant General Zaid Hoshi al-Mousawi will replace General Kareem al-Tamimi as commander of the CTS, while Major General Mohammed Qasim al-Fahad will replace Major General Saad al-Hilfi as commander of the Federal Police. Hoshi had most recently served as head of the CTS internal security department. In a separate leadership change, Zaidi also appointed General Falah Shaghati to head the Interior Ministry’s Intelligence Agency, and appointed former Interior Minister Abdulamir al-Shamari as the director of the Office of the Commander in Chief, an entity that had been abolished by former Prime Minister Haider al-Abadi in 2014. On Thursday, reports said that Zaidi appointed Brigadier General Osama Saad Hasan as commander of the “Special Division” tasked with security in the Green Zone.  

Sources cited in this section include: Rudaw, Mawazin, al-Sumaria, INA, Baghdad Today, Iraq’s parliament, ISHM archive, Ultra Iraq, al-Sa’a, Iraq Observer, Azzaman, Shafaq.

ECONOMY & CLIMATE: Iraq Signs Major Energy Deals With U.S. Firms; Washington to Ease Banking Restrictions; Oil Companies Suspend Production; Electricity Shortages Spark Protests

On July 17, the Iraqi government signed a series of agreements with U.S. companies worth an estimated $60 billion, U.S. Energy Secretary Chris Wright announced after meeting with Prime Minister Ali al-Zaidi. Among the most significant deals, Chevron will undertake a project to rehabilitate the oil export pipeline linking Haditha in Iraq to the Syrian port of Baniyas. During Zaidi’s visit to Washington, Iraq and Syria also signed a parallel memorandum of understanding supporting the project. The agreements further include a trilateral deal involving BP and ConocoPhillips, under which the latter will reportedly acquire a 42% stake in BP’s project to redevelop the Kirkuk oil field and several adjacent hydrocarbon deposits. Other U.S. companies that signed agreements with Iraq last week in the energy and other sectors reportedly include Halliburton, GE Vernova, Starlink, Cisco, J.P. Morgan, Abbott, PepsiCo, and UGT Renewables. 

On July 18, the Central Bank of Iraq (CBI) and the U.S. Treasury Department reached an agreement paving the way for seven restricted Iraqi banks to resume using correspondent banking relationships in foreign currencies other than the U.S. dollar, according to an Iraqi government statement. This first phase of the reintegration could be completed this summer, provided the banks meet the governance and compliance requirements established by the CBI. Banks that subsequently satisfy additional requirements will also be permitted to conduct transactions in U.S. dollars, according to a statement by the Treasury Department’s Office of Terrorism and Financial Intelligence (TFI). These additional requirements include undergoing a satisfactory third-party audit of their compliance functions, securing a qualified institutional investor, and meeting international fit-and-proper standards, the TFI statement added. The seven banks are the Iraqi Investment Bank, al-Mosul Bank, al-Arabiyah Islamic Bank, al-Janoub Bank, International Development Bank, al-Mashriq al-Arabi Bank, and the Kurdistan International Investment Bank.

On July 20, Gulf Keystone Petroleum (GKP) announced a temporary suspension of production at the Sheikhan oil field in the Kurdistan region as a precautionary measure amid rising security risks. In a statement, the company said none of its facilities at the 45,000 barrels per day (bpd) field had sustained damage during recent incidents. The following day, Canadian oil company ShaMaran Petroleum also suspended production at the Atrush and Sarsang oil fields, which together had been producing an average of 70,000 bpd. The moves follow last week’s decision by Dana Gas to temporarily halt operations at the Khor-Mor gas field as a precautionary measure amid “credible security threats” and rising regional tensions.

On July 21, at least five civilians were reportedly injured during protests over worsening electricity shortages in Najaf province. Hundreds of demonstrators gathered outside the provincial government headquarters in central Najaf and blocked roads with burning tires, demanding improved electricity supplies as outages grew longer and more frequent amid soaring summer temperatures. The injuries occurred after security forces used tear gas to disperse the crowd. Recent reports indicate that most provinces are receiving an average of only six to ten hours a day of electricity through the national grid. According to officials with Iraq’s Ministry of Electricity, the country is facing a large gap between supply and demand for power, with available power generation at 21,600 megawatts against peak demand reaching approximately 55,000 megawatts.

On July 21, the Iraqi Minister of Trade, Nizar al-Ani, announced the conclusion of this year’s wheat harvest, with farmers across the country delivering approximately 4.8 million tons of grain. The minister noted that this amount should be sufficient to cover the country’s wheat needs until the next season. 

Sources cited in this section include: INA, CNBC, AP, social media, ISHM archive, Shafaq, al-Ghad, Rudaw, PUKMedia, al-Mada, +964, al-Aalem al-Jadeed.

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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