Key Takeaways:

• POLITICS: Zaidi Faces Militia Threats Over Disarmament Push; Iran’s Ghalibaf Presents Tehran’s Proposal for Compromise – On August 13, the Badr Organization warned Prime Minister Ali al-Zaidi against moving too quickly to satisfy U.S. demands to place all weapons under state control. Badr official Mohammed Naji said the state and the “resistance” should not be viewed as opponents and warned that Badr “will not allow the Prime Minister or anyone” to use force against armed factions, saying such action could trigger internal conflict. Naji argued that removing the factions’ weapons by Zaidi’s September 30 deadline before securing the complete withdrawal of U.S. forces risks squandering an important bargaining chip. Meanwhile, Kataib Hezbollah (KH) reiterated its rejection of disarmament plans while criticizing Zaidi for allegedly following advice from U.S. envoy Tom Barrack. KH spokesman Abu Mujahid al-Assaf called for the dissolution of the Peshmerga and the withdrawal of Turkish forces from northern Iraq, in addition to the complete withdrawal of U.S. forces, as conditions for agreeing to regulate militia weapons. Assaf warned that the group’s “patience is running out” over what he described as provocative government measures against militia members, saying the group may respond with “an eye for an eye.” On August 19, Iranian parliament speaker Mohammad Bagher Ghalibaf arrived in Baghdad for talks with Prime Minister Zaidi, President Nizar Amedi, and other senior Iraqi officials focusing on border security and economic ties. Ghalibaf reportedly presented a proposal for a compromise between the Iraqi government and Iran-backed militias that involves “freezing” the factions’ heavy weapons and possibly transferring them to Iran until the two sides reach a political settlement that avoids confrontation. Speaking at a joint press conference with Deputy Speaker Adnan Feyhan, Ghalibaf praised the role of Iraqi armed factions during the Iran-U.S. war, saying that “resistance” had transcended borders to become a global power. He also said strong Iraq-Iran relations were laying the foundations for a new regional order independent of external influence. Ghalibaf appeared to rebuff a request by Iraqi Parliament Speaker Haybat al-Halbousi to give Iraq special treatment to allow its oil exports to pass through the Strait of Hormuz. Instead, Ghalibaf blamed U.S. policies for obstructing the natural flow of regional trade. more…
• SECURITY & HUMANITARIAN: Iranian Drones Target KRG Prime Minister’s Office; Senior Nujaba Commander Released by Judge 48 Hours After Arrest by CTS Troops – On August 17, two one-way attack drones launched from Iran struck the KRG Prime Minister Masrour Barzani’s office and the residence of the head of the Parastin security agency in the Pirmam district of Erbil province. The early-morning attack involved two Hadid-110 drones but caused no casualties, KRG security officials said. Barzani’s office condemned the “unprovoked” attack, describing it as an attempt to destabilize the Kurdistan Region despite its neutrality in the U.S.-Iran conflict. Prime Minister Zaidi spoke with Barzani and expressed his condemnation of the attacks while instructing security officials to investigate the incident. In a separate call with his Iranian counterpart, Iraqi Foreign Minister Fuad Hussein condemned the attack and demanded an official explanation from Tehran over what he called a “dangerous escalation.” Iranian Foreign Minister Abbas Araghchi said he had no information indicating that the attack was launched from Iran. On August 17, Counter-Terrorism Service troops arrested Abbas Hussein al-Yaqoubi, a senior intelligence officer in Harakat Hezbollah al-Nujaba. An Iraqi government spokesman said the arrest in Dhi-Qar province was carried out under a judicial warrant and affirmed that the government would deal with anyone resisting efforts to bring weapons under state control in accordance with the law. Yaqoubi, who was accused of carrying out attacks against U.S. interests, was later handed over to the PMF’s internal security department and soon released from custody after a judge dismissed the charges. Speaking at a press conference alongside other PMF officials, Yaqoubi blamed U.S. envoy Tom Barrack for instigating conflict between the government and the factions and said he would file a lawsuit against the Iraqi intelligence service over what he described as “malicious charges.” more…
• ECONOMY & CLIMATE: Pipeline to Syria Will Likely Cost $15 Billion and Take Four Years to Build; Budget Deficit Grew Higher in June – On August 17, a Reuters report citing sources familiar with Iraq’s oil-export plans said the country’s proposal to reduce its dependence on the Strait of Hormuz by building a pipeline to Baniyas in Syria would cost at least $15 billion and take four years to complete. The timeline is double previous estimates mentioned by officials. The cost and timeline are high because the plan calls for constructing entirely new infrastructure rather than repairing the heavily damaged old pipeline, which no longer meets the project’s technical specifications. The project also requires demolishing old infrastructure, securing land rights, and—critically—building a new pipeline from Basra to Haditha before oil can continue onward to Baniyas, adding further time and expense. On August 18, Finance Ministry data showed that government revenues through June totaled IQD 35.9 trillion, including IQD 28.4 trillion from oil exports and IQD 7.5 trillion from non-oil sources. Expenditures reached IQD 54.6 trillion, of which more than IQD 48.7 trillion went to salaries, pensions, and social security benefits. The figures indicate a deficit of more than IQD 18.7 trillion through the end of June. They also reflect a 42% decline in government revenue from the same period in 2025, when the ministry reported more than IQD 62 trillion in revenue. In other developments, on August 17–18, thousands of college graduates held demonstrations in Baghdad to demand jobs, while farmers demonstrated to demand payment for crops previously delivered to the government. On August 18, the Ministry of Water Resources signed a cooperation agreement with China’s state-owned ELINC CHINA to develop satellite- and AI-based systems for monitoring and managing Iraq’s water resources. 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 Faces Militia Threats Over Disarmament Push; Iran’s Ghalibaf Presents Tehran’s Proposal for Compromise

On August 13, the Badr Organization’s political bureau warned Prime Minister Ali al-Zaidi against moving too quickly to satisfy U.S. demands for placing all weapons under state control, arguing that the process should not proceed at the expense of Iraq’s national interests. Badr official Mohammed Naji said the state and the “resistance” should not be viewed as opponents and warned that Badr “will not allow the Prime Minister or anyone” to use force “against the brothers in the resistance,” saying that could trigger internal conflict. He called for disarmament to proceed through dialogue and consensus, conditioned on the complete withdrawal of U.S. forces, the removal of “strategic threats” to Iraq, and further development of the Iraqi armed forces, particularly air defenses. Naji argued that getting rid of the factions’ weapons before securing complete U.S. departure risks squandering an important bargaining card. Later in the week, Kataib Hezbollah (KH) reiterated its rejection for disarmament plans while criticizing Zaidi for allegedly following advice from U.S. envoy Tom Barrack. KH spokesman Abu Mujahid al-Assaf called in a statement for the dissolution of the Peshmerga and withdrawal of Turkish forces from northern Iraq, in addition to the complete withdrawal of U.S. forces, as conditions for reaching an agreement with the government on regulating militia weapons. Assaf warned that the group’s “patience is running out” over what he described as provocative government measures against militia members, saying the group may have to respond using the principle of “an eye for an eye.” Meanwhile, a Coordination Framework (CF) source said the State of Law (SoL)Coalition had proposed separating the militia disarmament process from the timeline for the U.S. withdrawal and giving the former more time, with the proposal still under consideration. Meanwhile, SoL leader Nouri al-Maliki told the U.S. charge d’affaires in Baghdad that the CF has formed its own committee to manage the process of placing weapons under state control, saying the committee will start working in coordination with the government soon. Prime Minister Zaidi’s security adviser Qasim al-Araji, meanwhile, said efforts to bring weapons under state control were not intended to marginalize former fighters, but to provide them and their families with legal and social protections under the authority of the state. He also called for public messaging on the issue to emphasize reassurance and national partnership rather than threats. 

On August 14, security sources said that a special force from the Integrity Commission arrested Deputy Electricity Minister for Distribution Khalid Ghazzay Atiyah. The sources said the arrest was based on a judicial warrant related to corruption charges, but did not provide further details. Later, on August 17, INA reported, citing informed sources, that security forces executing a judicial warrant had arrested former lawmaker Kadhim al-Sayyadi. Sayyadi, who represented the Sadrist bloc in parliament, is facing extortion charges, the sources said, without providing details about the case or the party that filed the charges.

On August 19, Iranian parliament speaker Mohammad Bagher Ghalibaf arrived in Baghdad for talks with Prime Minister Ali al-Zaidi, President Nizar Amedi, and other senior Iraqi officials on bilateral relations and regional conflicts, with discussions focusing on border security, counterterrorism, expanding economic ties, and implementing previously signed agreements. An Asharq al-Awsat report citing Iraqi sources familiar with the talks said Ghalibaf presented an Iranian proposal for a compromise between the Iraqi government and Iran-backed militias that Baghdad wants to disarm by September 30. The proposal reportedly involves “freezing” the factions’ heavy weapons and possibly transferring them to Iran until the two sides reach a political settlement that avoids confrontation. Speaking at a joint press conference with Deputy Speaker Adnan Feyhan, Ghalibaf praised the role of Iraqi armed factions during the Iran-U.S. war, saying that “resistance” had transcended borders to become a global power. He also said strong Iraq-Iran relations were laying the foundations for a new regional order independent of external influence. During a meeting with Ghalibaf, Iraqi Parliament Speaker Haybat al-Halbousi urged Iran to give Iraq special treatment to allow its oil exports to pass through the Strait of Hormuz. Ghalibaf blamed U.S. policies for obstructing the natural flow of regional trade. On other economic issues, he emphasized the need to implement long-stalled plans to extend the Shalamcheh-Basra railway connection.

Sources cited in this section include: al-Sumaria, Peregraf, al-Ghad, INA, Shafaq, Fars, Iraqi PM’s office, Asharq al-Awsat.

SECURITY & HUMANITARIAN: Iranian Drones Target KRG Prime Minister’s Office; Senior Nujaba Commander Released by Judge 48 Hours After Arrest by CTS Troops

On August 17, the Kurdistan Region’s Counter-Terrorism Directorate said that two one-way attack drones launched from Iran struck the KRG Prime Minister Masrour Barzani’s office and the residence of the head of the Parastin security agency in the Pirmam district of Erbil province. The early-morning attack involved two Hadid-110 drones but caused no casualties, the statement said. Barzani’s office condemned the “unprovoked” attack, describing it as an attempt to destabilize the Kurdistan Region despite its neutrality in the ongoing regional conflict. Prime Minister Ali al-Zaidi spoke with Barzani and expressed his condemnation of the attacks, while instructing security officials to investigate the incident. In a separate call with his Iranian counterpart, Iraqi Foreign Minister Fuad Hussein condemned the attack and demanded an official explanation from Tehran over what he called a “dangerous escalation.” Iranian Foreign Minister Abbas Araghchi said he had no information indicating that the attack was launched from Iran. A few days earlier, on August 14, three other one-way attack drones were shot down by Global Coalition forces over Erbil.

On August 17, security sources told Shafaq News that Counter-Terrorism Service troops dispatched from Baghdad arrested a senior member of Harakat Hezbollah al-Nujaba in the al-Fadheela subdistrict of Dhi-Qar province, south of Nasiriyah. Other reports later identified the detainee as Abbas Hussein al-Yaqoubi, a senior intelligence officer in the militia group. An Iraqi government spokesman said the arrest was carried out under a judicial warrant and affirmed that the government would deal with anyone resisting efforts to bring weapons under state control in accordance with the law. Yaqoubi, who was accused of carrying out attacks against U.S. interests, was later handed over to the PMF’s internal security department, according to a PMF spokesman. Yaqoubi was released from custody on Wednesday after a judge dismissed the charges against him, according to a statement by the Popular Mobilization Commission. Speaking at a press conference alongside other PMF officials, Yaqoubi blamed U.S. envoy Tom Barrack for instigating conflict between the government and the factions, and said he will file a lawsuit against the Iraqi intelligence service for what he described as “malicious charges” against him. (Note: The incident parallels a June 2020 episode in which 14 Kataib Hezbollah militiamen arrested for attacks on U.S. interests were transferred to PMF custody before being released by an Iraqi judge.) 

On August 17, a report by al-Arabiya citing Iraqi sources said that armed factions had allegedly been planning to assassinate Judge Faeq Zaidan, head of Iraq’s Supreme Judicial Council. The report linked the alleged plot to Zaidan’s support for Prime Minister Ali al-Zaidi’s efforts to combat corruption and bring weapons held by armed factions under state control, but provided no further details.

On August 17, security sources in Basra province said that an Iraqi national working for a demining company was killed when a landmine exploded while he was working in the North Rumaila region of the province. 

On August 17, the Security Media Cell reported that Iraqi F-16 jets bombed a position used by suspected ISIS militants in the Wadi Zghaytoun region of Kirkuk province. The strike destroyed the position and killed an unspecified number of suspected militants, the report added. 

Sources cited in this section include: Kurdistan24, al-Sumaria, Iraqi PM’s office, Rudaw, Iraq’s Foreign Ministry, al-Arabiya, Shafaq, Ultra Iraq, NINA, ISHM archives, INA, social media. 

ECONOMY & CLIMATE: Pipeline to Syria Will Likely Cost $15 Billion and Take Four Years to Build; Budget Deficit Grew Higher in June

On August 17, a Reuters report citing sources familiar with Iraq’s oil‑export plans said the country’s proposal to mitigate disruptions in the Strait of Hormuz by building a pipeline through Syria would require at least $15 billion in investment and take four years to complete. The timeline is double the estimates previously mentioned by officials, including U.S. Treasury Secretary Scott Bessent, the report notes. Last month, the Iraqi government signed an agreement with a consortium involving Chevron, TI Capital, and Qatar’s UCC Holding to conduct technical and financial studies for rebuilding the oil‑export pipeline from Haditha to the Syrian port of Baniyas, a project intended to reduce Iraq’s reliance on the Strait of Hormuz. Sources told Reuters the cost and timeline are high because the plan calls for constructing entirely new infrastructure, rather than repairing the heavily damaged old pipeline, which no longer meets the project’s technical specifications. The original line was designed for 300,000 bpd, while the new plan requires 1 million bpd of capacity. They added that the project also involves demolishing old infrastructure, securing land rights, and—critically—building a new pipeline from Basra to Haditha before oil can continue onward to Baniyas, adding further time and expense.

On August 17, thousands of college graduates gathered outside the Green Zone in Baghdad to demand employment opportunities. Reports and interviews with demonstrators indicated that graduates from several provinces traveled to the capital to voice their frustration over the government’s inability to provide jobs, in some cases years after they completed their studies. Farmers also demonstrated near the Finance Ministry compound in Baghdad this week, reportedly demanding payment for crops previously delivered to the government, higher wheat procurement prices, and loan forgiveness.

On August 17, the governor of Iran’s central bank arrived in Baghdad for talks with Iraqi officials, including Prime Minister Ali al-Zaidi, Finance Minister Falih al-Sari, and Central Bank of Iraq Governor Nizar Nasir Hussein. Iranian media reported that the talks focused on mechanisms to recover nearly $12 billion owed to Iran by Iraq, most of it related to Iranian gas exports to Iraq. The two sides discussed several options that would facilitate Iranian traders’ and financial institutions’ access to the funds, the reports added.

On August 18, Iraq’s Finance Ministry released data showing that government revenues through June totaled IQD 35.9 trillion, including IQD 28.4 trillion from oil exports and IQD 7.5 trillion from non-oil sources. Expenditures reached IQD 54.6 trillion, including nearly IQD 51 trillion in operational spending, almost IQD 4 trillion in debt servicing, and just under IQD 16 trillion in capital expenditures. More than IQD 48.7 trillion of operational spending went to salaries, pensions, and social security benefits. The figures indicate a deficit of more than IQD 18.7 trillion through the end of June. They also reflect a 42% decline in government income from the same period of 2025, when the ministry reported more than IQD 62 billion in revenue. 

On August 18, the Ministry of Water Resources signed a cooperation agreement with China’s state‑owned ELINC CHINA to develop satellite and AI-based systems for managing Iraq’s water resources. The ministry said the agreement was signed during a meeting between Minister Muthanna al-Tamimi and Chinese Ambassador Xiang Bo to discuss expanding technical cooperation in the water sector. Under the agreement, Iraq will establish a national platform for dynamic water resource monitoring and management, enabling real-time tracking, analysis, and decision-making. The cooperation also covers creating a unified national water data registry and developing a digital monitoring system that provides an integrated database to support sustainable planning. The ministry added that the project will employ geospatial analysis, AI-supported remote sensing tools, and multispectral satellite data to improve data accuracy and strengthen Iraq’s monitoring capabilities.

Sources cited in this section include: Asharq al-Awsat, Shafaq, AP, Iraq’s Finance Ministry, al-Ghad, INA, Iraq Observer, 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.

Subscribe to our weekly ISHM and have the latest developments in Iraq sent straight to your inbox every Thursday and follow EPIC on Twitter to receive updates throughout the week.