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Iraq

Economics

Military & Security

The United States resumed at least some air shipments of U.S. dollars to Iraq months after Washington had initially suspended them in April, The New York Times reported July 2, citing aides to Iraqi Prime Minister Ali al-Zaidi.

U.S., Iraq: U.S. Resumes Suspended Dollar Shipments to Iraq

Politics

Iraq's new Prime Minister Ali al-Zaidi was sworn in on May 14 with a partial cabinet after parliament approved 14 ministers but failed to reach consensus on nine remaining portfolios, including the key Interior and Defense ministries, Reuters reported the same day.

Iraq: New Prime Minister Sworn In With a Partial Cabinet

Iran

Energy

Iraqi officials are seeking financial assistance from the International Monetary Fund to offset the economic toll of the Iran war, Reuters reported on May 14.

Iraq: Officials Seek IMF Support To Offset Economic Impact of Iran War

Algeria

Kuwait

Oman

Saudi Arabia

United Arab Emirates

Kazakhstan

Russia

The seven OPEC+ members implementing voluntary production cuts agreed to increase production by 188,000 barrels per day in June, according to a statement released on May 3. 

Global: OPEC+ Agrees to Modest but Symbolic Production Hike in First Meeting Without the UAE

Iraq's Shiite Coordination Framework, or SCF, an umbrella organization of Shiite parties aligned with Iran, named Ali al-Zaidi, a businessman and head of a U.S.-sanctioned bank, as the "consensus candidate" to become Iraq's next prime minister, Reuters reported on April 27.

Iraq: Shiite Coordination Framework Nominates Ali al-Zaidi as Prime Minister

Bahrain

Qatar

Tasnim News Agency, an Iranian news outlet linked to the Islamic Revolutionary Guard Corps, published a report April 22 suggesting that Gulf states are vulnerable to sustaining damage to their undersea cables in the Strait of Hormuz.

Middle East: Iranian Outlet Highlights Sabotage Threat to Persian Gulf Undersea Cables

The United States reportedly withheld a shipment of $500 million in cash to Iraq from the Federal Reserve Bank of New York to intensify pressure on Baghdad to disarm Iranian-backed Shiite militias and select a nominee for prime minister suitable to the United States, Reuters reported April 22.

U.S., Iraq: U.S. Suspends Dollar Shipments to Iraqi Central Bank, Pauses Some Security Cooperation

Iraq's State Oil Marketing Organization notified customers on April 5 that all its loading terminals were operational, Bloomberg reported the next day.

Iraq, Iran: Iraq Reaches Out to Oil Buyers Following Exemption From Iran's Strait of Hormuz Restrictions

Assessments

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.

While the Iraqi prime minister's visit to the White House yielded some deals, implementation constraints will likely eventually lead to renewed U.S. economic pressure, further straining Baghdad's finances.

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

Members of Saraya al-Salam gather during a ceremony in the city of Samarra on June 4, 2026, marking their separation from the Sadrist movement and their integration into the Iraqi security forces.

Several militant factions have recently expressed a desire to integrate into Iraq's government structures, but more hard-line groups are unlikely to follow suit without Iran's approval.

Iraq's Push To Disarm Iranian-Backed Militias Will Have Only Partial Success

Israel

A member of the Iraqi security forces stands guard next to a national flag as pilgrims march from the center of Baghdad toward the shrine of Imam Moussa al-Kadhim, the seventh of 12 revered imams in Shiite Islam, during an annual religious commemoration on Feb. 16, 2023.

Ali al-Zaidi's lack of experience and ties to a U.S.-sanctioned bank will complicate his attempts to form a government by the constitutional deadline.

Iraq's Prime Minister-Designate Likely To Struggle To Form Government

Iraqi women light candles in memory of the victims of the U.S.-Israeli attacks on Iran and Lebanon during a rally in Baghdad's Tahrir Square on April 2, 2026.

Violent spillover from the Iran war will further complicate Iraq's government formation process, while disrupted oil exports will heavily strain Baghdad's finances and raise the risk of unrest.

Iraq Is Caught in the Crossfire of Another Destabilizing War

Jordan

Syria

Jordanian Armed Forces, U.S. Army and U.S. Marine Corps forces and other international forces conduct a combined Arms Live Fire Exercise on May 23, 2024 in the desert near Azraq, Jordan. 

As the United States prepares to withdraw its final troops from Syria, Amman will likely expand cross-border security operations to counter Islamic State and disrupt drug smuggling networks.

Jordan Likely To Step Up Anti-Islamic State, Countersmuggling Operations in Syria

Turkey

Members of the Kurdistan Democratic Party of Iran (KDPI) participate in a military drill in an outpost near Arbil, in the Kurdistan region of Iraq, on Jan. 15, 2026.

U.S.-Iran Relations

Although arming Iranian Kurdish factions might increase pressure on Tehran, such an uprising alone would be unlikely to collapse the regime, while significantly raising the risk of drawing Turkey and Iraq into the conflict.

The Risks and Constraints of a U.S.-Backed Kurdish Uprising in Iran

Lebanon

People attend a gathering honoring Iran's former Supreme Leader, Ayatollah Ali Khamenei, on March 1, 2026, at Ashura Square in southern Beirut, Lebanon. 

The Iran war has thrown a wrench in Iraq's and Lebanon's political stalemates, likely further prolonging government formation and delaying elections.

Political Stalemates in Iraq and Lebanon Deepen Amid Regional Instability

Snapshots

Yemen

A plume of smoke rises following a reported explosion Feb. 28 in Tehran. The joint U.S.-Israel military operations on Feb. 28 against Iran have already escalated into a broader regional confrontation.

The military operations have already escalated into a broader regional confrontation and mark the onset of a sustained, multitheater conflict, but are unlikely on their own to trigger near-term regime collapse in Tehran.

A New U.S. and Israeli Attack on Iran Triggers a Regional Confrontation

Columns

On Geopolitics

Somalia

Sudan

Egypt

Libya

A dark earth map of the Middle East with glowing details of cities and human population density areas.

Two blocs are emerging in the Middle East: one focused on preserving existing states and institutions, and the other on creating new ones.

Preservation vs. Fragmentation: Two Paths Toward a New Order in the Middle East

Former Iraqi Prime Minister Nouri al-Maliki (center) delivers a speech during a campaign rally in Baghdad ahead of parliamentary elections on Nov. 7, 2025. 

If former Prime Minister al-Maliki overcomes challenges to form a new cabinet, it would likely deepen sectarian divisions, embolden Iran-backed militias and increase Iraq's exposure to U.S. financial and/or military pressure.

In Iraq, the Potential Return of a Divisive Leader Raises Alarm

Palestinian Territories

A stock image shows the silhouettes of soldiers.

Israel-Hamas Conflict

Emboldened by its recent capture of Venezuela's Maduro, the White House will likely seek to kill and potentially abduct more Middle Eastern extremists in the coming year, but pursuing high-profile targets like Iranian leaders will carry significant risks.

Potential Targets for U.S. Assassination and Abduction Operations in the Middle East

Iraqi riot police walk past a screen displaying a portrait of incumbent Iraqi Prime Minister Mohammed Shia al-Sudani during celebrations by his supporters following the announcement of preliminary election results in Baghdad on Nov. 12, 2025. 

The Nov. 11 elections produced another fragmented legislature where Iranian-backed parties still have significant influence, portending contentious government formation talks that could impede policymaking and trigger armed clashes.

Iraq Braces for Another Turbulent Government Formation Process

<p>Iraq rests at the heart of the Middle East, wedged between large and small powers alike. The country is divided into three topographic zones: the riverlands of Mesopotamia, the land between the Tigris and Euphrates rivers; the western and southern deserts, which reach into Saudi Arabia and Syria; and the highlands of Iraqi Kurdistan. The southern deserts shield Iraq from attack, while the northern highlands impede any attempt at conquest from Anatolia. But the open Syrian Desert provides a route into Iraq from Syria, especially along the Euphrates River, and the country&rsquo;s eastern frontier has few natural barriers to prevent invasion from Iran. The flat riverlands are similarly vulnerable to incursion from any power able to land an army from the Persian Gulf. Historically, foreign forces have used these routes as a means to penetrate Iraq&rsquo;s borders. In premodern times, Iraq&rsquo;s wealth came from its agricultural core, which forms the heart of the Fertile Crescent and stretches to the Persian Gulf. The country&rsquo;s 37 million people are still mostly concentrated in these farmlands today. But the discovery of oil in the north, east and south have shifted Iraq&rsquo;s economic core from the agricultural riverlands to the northern highlands and the Iranian border, bringing prosperity to cities such as Mosul, Arbil and Kirkuk. For most of its history, Iraq has been dominated by its neighbors, which have left behind unique cultural, religious and ethnic legacies. The Sunni Ottoman Turks and the Shiite Safavid Persians helped produce the country&rsquo;s modern Sunni and Shiite communities, while the sparsely inhabited western desert continues to have tribal and sectarian links to Saudi Arabia, Jordan and Syria. Some of these groups have kept their relationships with Iraq&rsquo;s neighbors, which leverage those ties for their own strategic purposes. Meanwhile, in Iraq&rsquo;s northern highlands, the indigenous Kurds have managed to maintain a cohesive identity throughout centuries of foreign domination. This isolation occasionally gives rise to Kurdish secessionism. As the northern highlands drift further from the central government&rsquo;s control, the Sunni, Shiite, Christian and other communities of the riverlands and deserts jockey with one another for dominance of the state. Iraq&rsquo;s geographic challenge is therefore to protect its vulnerable oil fields while managing a diverse population that is susceptible to external influence.</p>

SITUATION REPORTS

U.S., Iraq: U.S. Resumes Suspended Dollar Shipments to Iraq

Iraq: New Prime Minister Sworn In With a Partial Cabinet

Iraq: Officials Seek IMF Support To Offset Economic Impact of Iran War

Global: OPEC+ Agrees to Modest but Symbolic Production Hike in First Meeting Without the UAE

Iraq: Shiite Coordination Framework Nominates Ali al-Zaidi as Prime Minister

Middle East: Iranian Outlet Highlights Sabotage Threat to Persian Gulf Undersea Cables

U.S., Iraq: U.S. Suspends Dollar Shipments to Iraqi Central Bank, Pauses Some Security Cooperation

Iraq, Iran: Iraq Reaches Out to Oil Buyers Following Exemption From Iran's Strait of Hormuz Restrictions

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