ASSESSMENTS

New U.S. Agreements Unlikely to Ease Iraq's Economic Woes

Jul 28, 2026 | 19:23 GMT

U.S. President Donald Trump (right) speaks during a meeting with Iraqi Prime Minister Ali al-Zaidi (2nd-L) in the Oval Office of the White House on July 14, 2026.
U.S. President Donald Trump (right) speaks during a meeting with Iraqi Prime Minister Ali al-Zaidi (2nd-L) in the Oval Office of the White House on July 14, 2026.

(Andrew Harnik/Getty Images)

The Iraqi prime minister's visit to the United States yielded some economic deals and a limited banking reform framework, but implementation constraints will likely prevent substantive progress on broader security and economic reforms, resulting in renewed U.S. economic and potentially military pressure, and likely increasing Baghdad's need for financing. Iraqi Prime Minister Ali al-Zaidi concluded his visit to the United States on July 18, marking his first official visit to the country since his swearing-in in May. During a July 14 meeting, al-Zaidi and U.S. President Donald Trump discussed disarming Iran-backed Iraqi militias, the U.S. withdrawal of forces from Iraq and expanding bilateral economic ties, including multiple oil deals involving U.S. firms. Members of the Iraqi delegation also met with senior Trump administration officials and International Monetary Fund (IMF) officials to continue discussions about a potential IMF loan arrangement, which media reports suggest could be worth up to $8 billion....

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