Exclusive: Baghdad and Washington prepare to sign 18 agreements and establish a $1 trillion development fund

An informed source revealed on Tuesday that Iraq will sign more than 18 agreements with the United States in various fields, while noting that there are agreements ready that will be signed soon. Iraqeconomic analysis

The source told Shafaq News Agency that “Prime Minister Ali al-Zaidi’s visit, which is considered historic as he is the first prime minister to be received with such warmth and attention, will lead to the signing of more than 18 partnership agreements in various fields, including politics, economy, industry, energy, oil, education, health, investment and armament, and that these agreements will strengthen the partnership between Iraq and the United States.”

He added that “Iraq is looking to establish a development fund in one of the American banks, not in the Federal Reserve Bank. According to initial data, the fund will be financed from the revenues of oil exported to the United States, in an amount of up to 500,000 barrels per day, which makes the value of the fund’s financing reach one trillion dollars, to finance investment projects and infrastructure projects, foremost among them electricity projects and other important projects.”

The source indicated that “there are agreements ready that have been finalized and discussed between the two sides, and they will be signed by the relevant officials and ministers accompanying Al-Zaidi with their American counterparts, which will constitute a positive step that reflects the strengthening of relations between the two countries.”

Earlier, US President Donald Trump announced that next week will see the announcement of a major oil partnership with Iraq, in addition to the conclusion of major trade deals.

Earlier, Al-Zaydi called on Iraqi businessmen in the United States, particularly members of the Christian community, to invest in the education, health and oil industries, and to participate in the reconstruction of the Nineveh Plain region.

Al-Zaidi arrived in the US capital, Washington, on Monday, at the head of a high-level delegation that included a number of ministers, officials, investors and business owners, for an official visit that will last for seven days.

Last month, Iraqi government spokesman Haider al-Aboudi announced that the cabinet had decided to establish a development fund project with international guarantees and contributions amounting to $150 billion to achieve economic stability through investment.

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Beyond the statements: Messages from the Trump-al-Zaidi meeting at the White House

In a meeting that carried multiple political, economic and security messages, US President Donald Trump received Iraqi Prime Minister Ali al-Zaidi at the White House on Tuesday evening, Baghdad time, in his first foreign visit since assuming the premiership, amid complex regional circumstances, most notably the renewed tension between the United States and Iran, and escalating fears of a wider confrontation in the region.

The meeting that brought the two sides together in the Oval Office was not just a protocol stop in Iraqi-American relations, but rather seemed to be an attempt to redefine the nature of the relationship between Baghdad and Washington, by moving from a phase that focused on the security and military file to a new phase that puts the economy, energy and investment at the forefront of priorities, while the files of weapons and regional influence remain strongly present on the table of discussion.

During the joint press conference, Trump announced that the United States does not see a need for a continued American military presence in Iraq, stressing that the next phase will depend on a broad economic partnership, especially in the oil sector, while Al-Zaidi stressed that his country is moving towards ending the mission of the international coalition in exchange for opening the door for American companies to invest in Iraq.

But behind the diplomatic language, the meeting addressed more sensitive issues, most notably the future of armed factions, the relationship with Iran, energy security, and the future of Iraq’s role in a region witnessing increasing tensions.

New partnership

During the meeting, the US president stressed that the relationship with Baghdad is entering a different phase, noting that the United States supported Iraq during the war against ISIS, but no longer sees a need for its forces to remain militarily in the country.

Trump said that “there is no need for an American military presence in Iraq,” while emphasizing Washington’s readiness to support Iraq’s security when necessary.

He noted that the United States and Iraq are moving towards a strong partnership in the oil sector, announcing that American energy companies will enter Iraq at levels he described as “unprecedented,” and that next week will witness the announcement of a major oil partnership and extensive trade deals between the two countries.

Trump also described Iraq as a country rich in resources and oil reserves, arguing that the next phase should invest these capabilities in strengthening economic cooperation.

The US president did not hide his political support for al-Zaidi, saying that he was interested in him becoming prime minister, considering that his rival was adopting inappropriate positions towards Washington (referring to Nouri al-Maliki).

Trump described al-Zaidi as a “great leader,” expressing his belief that he would remain in office for a long time, and said that Iraq was undergoing a transformation in its relationship with the United States.

Energy Hub

The energy file occupied a large part of the White House discussions, given Baghdad’s desire to attract American companies to develop the oil and gas sector, increase production and improve infrastructure.

Al-Zaydi said that Iraq wants a strong economic partnership with the United States, and that the end of the American military presence will be met with the entry of American companies into the Iraqi market.

He stressed that the relationship between the two countries should be based on economic and social ties, and not just on military cooperation.

He explained that Iraq, as one of the founding members of OPEC, demands a fair share of oil production commensurate with its capabilities, noting that the country paid a heavy price during the war on terror, which left widespread damage to the infrastructure.

Simultaneously with the White House meeting, Iraqi Oil Minister Bassem al-Abadi discussed in Washington with the president of the American company Chevron, Jake Sperring, opportunities to expand cooperation in the oil and gas sectors, develop production, and benefit from global expertise and technology.

This comes as part of a government initiative to attract major energy companies, diversify oil export outlets, and reduce the risks associated with dependence on the Strait of Hormuz.

The factional dilemma

The issue of armed factions was one of the most sensitive issues during Al-Zaidi’s visit, as the Iraqi Prime Minister confirmed that his government is proceeding with the implementation of the decision to restrict weapons to the state.

Al-Zaydi said that the Iraqi security forces have become capable of protecting the country, and that the phase following the end of the international coalition’s mission at the end of next September will witness full reliance on Iraqi security capabilities.

He added that the government had received quantities of weapons from some factions, and that it would continue to work with those who choose to engage in the political process, stressing that it would not allow any party to carry weapons outside of official institutions.

He explained in his statements that “there is no need for any factions after the end of September,” stressing that the state’s decision is to end the duality of weapons.

Washington had made it clear before the visit that it would assess its position based on “measurable actions and results,” not just political pledges, indicating that the issue of the factions would be a key criterion in evaluating the future relationship with Baghdad.

In this context, Ihsan Al-Shammari, head of the Center for Political Thought and professor of strategic and international studies at the University of Baghdad, believes that this issue will be central to the Washington talks.

Al-Shammari told Shafaq News Agency that regional developments will push the United States to take a tougher stance against Iranian influence and armed factions, noting that the US administration will demand swift action from al-Zaidi. Dailynews reports

He adds that the Prime Minister is facing mutual pressure between Washington on one hand, and the political forces and factions on the other, noting that the challenge before him is to achieve a balance that allows for the implementation of his government program.

Iran file

Iran was not absent from the meeting, as Trump described Tehran as a “great burden” on Iraq, noting that the region had gotten rid of, in his words, an entity that had been a source of pressure.

He also spoke about the US measures against Iran and the sanctions targeting it, stressing that Washington had given Tehran opportunities to reach an agreement but had responded to what he described as Iranian escalation.

These statements coincided with Trump’s announcement that his administration is working to include Iran and the Lebanese Hezbollah in a sanctions bill linked to the sanctions imposed on Russia.

In this regard, political researcher and advisor to the former Iraqi Prime Minister, Ayed Al-Hilali, believes that the regional dimension gives Al-Zaidi’s visit greater importance than just the bilateral relationship.

Al-Hilali told Shafaq News Agency that the escalating tension between Washington and Tehran, along with developments in Yemen and the Red Sea, presents Iraq with a difficult test in managing its balancing policy.

He continues, saying that Baghdad is required to protect its interests with the United States without engaging in a policy of alliances, warning that an escalation of the confrontation could raise the bar for American demands towards Iraq.

Internal debate

Inside Iraq, the visit faced objections from some factions and political forces who warned against the nature of the new relationship with Washington.

In this regard, Abdul Rahman al-Jazaeri, a leader in the Coordination Framework (which brings together the ruling Shiite political forces in Iraq), says that the escalation in the Gulf and the targeting of American bases further complicates the situation, noting that some factions still object to the monopoly on weapons and to economic and political openness with the United States.

Al-Jazaeri adds to Shafaq News Agency that Iranian-Iraqi relations have political, economic and ideological dimensions, and that any American pressure on Baghdad may affect these relations.

He points out that the future of the American presence in Iraq remains unclear, and that the visit is not only related to the economy, but also to Iraq’s position in major regional transformations.

In contrast, Abbas Al-Aqabi, a specialist in legal affairs and international agreements, believes that Al-Zaidi’s visit does not mean that Iraq is siding with one party at the expense of another.

Al-Aqabi told Shafaq News Agency that the visit came at the invitation of the US President, and that it included multiple files related to the economy, energy, investment, agriculture and industry, stressing that Iraq seeks to build balanced relations with Washington and Tehran.

He concludes at the end of his speech that the issue of restricting weapons came within the government program, and that the goal of cooperation with American companies is to provide an investment environment that the country needs, especially with the limited internal financial capabilities.

Shafaq.com

As confirmed by Shafaq News, Baghdad and Washington are outlining a new military partnership.

Prime Minister and Commander-in-Chief of the Armed Forces Ali Faleh al-Zaidi directed the formation of an Iraqi committee to negotiate with the United States regarding the nature of the security and military relationship between the two countries, following the complete withdrawal of US forces operating within the international coalition to fight ISIS. Broadcast& Network News

The spokesman for the Commander-in-Chief of the Armed Forces, Sabah al-Nu’man, said in a statement received by Shafaq News Agency that al-Zaidi’s directive came after official talks he held, on Tuesday evening Baghdad time, with US Secretary of Defense Pete Hegseth, at the ministry headquarters in Washington, DC.

Al-Nu’man explained that the committee will be responsible for communicating with the American side to determine the nature of the future security and military relationship between the two countries, in light of preparations for the end of the mission of the American forces operating within the international coalition on September 30.

He stressed that the new relationship will be formulated within the parameters of Iraqi sovereignty and its requirements, and in a way that supports the full authority of the Iraqi armed forces over the country’s territory, as they are capable of protecting Iraq by land and air.

The talks between al-Zaidi and Hegseth included a comprehensive review of security and military relations between Iraq and the United States, as well as an agreement on a number of issues of common interest, including the continuation of intelligence sharing in the field of counter-terrorism.

The two sides also agreed to raise the level of coordination to dismantle the incubators and havens of terrorist organizations, and to develop cooperation in the areas of training, arming and raising the capabilities of the Iraqi armed forces in all their branches.

According to the statement, the talks also addressed expanding technical, technological and digital cooperation in security and military applications, in addition to equipment and armament, while emphasizing respect for Iraqi sovereignty.

Al-Nu’man had revealed, in a special interview with Shafaq News Agency prior to the meeting, Baghdad’s intention to establish a bilateral military partnership with the United States after the end of the international coalition’s mission, which includes training, arming, intelligence cooperation and raising the capabilities of the Iraqi armed forces.

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Washington supports the reactivation of the Kirkuk-Banias oil pipeline.

A U.S. State Department official announced Wednesday that Washington supports Iraqi and Syrian efforts to restart the crude oil pipeline between the two countries, in a move aimed at reducing the impact of disruptions to oil supplies through the Strait of Hormuz.

The official, according to Reuters, said the United States expects American companies to play a role in accelerating the rehabilitation of the Kirkuk-Banias pipeline, most of which has been damaged since the 2003 US invasion of Iraq.

He explained that the pipeline, once restarted, will extend from the oil fields in Kirkuk province to the western coast of Syria, making it one of the projects through which the countries of the region seek to diversify oil export routes and reduce dependence on the Strait of Hormuz.

The official noted that this project is part of a series of efforts by Middle Eastern oil producers to reduce their dependence on the strait, through which about 20 percent of the world’s oil and gas supplies passed before the outbreak of the US-Israeli war on Iran on February 28.

He added that the United States had reimposed a blockade on the Strait of Hormuz after attacks targeted ships within it, holding Iran responsible for those attacks.

Bloomberg reported on Tuesday that Chevron might contribute to rebuilding the pipeline.

Shafaq.com

A government advisor explains how US interest rates control the movement of gold and the dollar in Iraq.

The Prime Minister’s financial advisor, Mazhar Muhammad Saleh, confirmed on Wednesday that US interest rates and the strength of the dollar are among the most prominent factors affecting the movement of gold prices globally, indicating that any change in the directions of the Federal Reserve (the US central bank) is directly reflected in the attractiveness of the yellow metal to investors and traders locally. News

Saleh told Shafaq News Agency that raising US interest rates pushes investors towards assets with returns, such as bonds and dollar deposits, at the expense of gold, which does not generate a periodic return, which often leads to a decline in demand for it and a drop in its prices globally.

He added that the rise in interest rates also contributes to supporting the strength of the US dollar, which makes buying gold more expensive for investors outside the United States because the precious metal is priced in green currency, noting that the reduction in interest rates reinforces the demand for gold as a safe haven, a store of value and a tool to hedge against inflation.

Saleh explained that the Federal Reserve kept interest rates unchanged at a range of 3.50% to 3.75%, while markets await its future directions regarding the course of monetary policy, noting that expectations of a future interest rate cut may support gold prices even before an actual decision to cut is issued.

The government advisor pointed out that Iraq, as a net importer of gold, is directly affected by global price movements, explaining that the local market is also affected by competition from the cash dollar, which represents an alternative store of value for traders and Iraqi citizens during periods of market volatility.

Shafaq.com

Basra oil exports partially recover to 870,000 barrels per day in June

Official data from the Iraqi State Oil Marketing Company (SOMO) showed that the rate of crude oil exports transported by sea through Basra ports rose to about 870,000 barrels per day during the past month of June, recording a threefold increase compared to the month of May, following the partial resumption of flows through the Strait of Hormuz before security tensions caused it to be closed again. Financialnews subscription

Despite this relative recovery, official data indicates that oil exports are still far below pre-regional crisis levels, with Basra exporting about 3.6 million barrels per day last February.

In a related context, the average exports of Iraqi crude oil via the Turkish Ceyhan pipeline reached about 230,000 barrels per day during June, which represents about half of the pipeline’s usual historical rates. Crude oil produced from federal fields constituted about 176,000 barrels per day of the total quantities exported via the northern pipeline.

The Platts OPEC survey issued by S&P Global Energy showed that Iraq’s total crude oil production reached 4.22 million barrels per day last February, but the loss of southern export outlets and regional unrest led to a decline in the country’s total production to below 2 million barrels per day during the period from March to June.

Shafaq.com

Exclusive: Parliamentary Finance Committee reveals gradual shift in Iraqi budget starting in 2027

Hussein al-Daraji, a member of the Finance Committee in the Iraqi Parliament, revealed on Wednesday that the legislative and executive authorities intend to gradually move towards implementing a “programs and performance budget” starting from next year, 2027, to ensure the regulation of spending and the protection of public funds. MiddleEast news

Al-Daraji told Shafaq News Agency in a special statement that the Parliamentary Finance Committee hosted Finance Minister Falih al-Sari last week to discuss the fundamental amendments to the draft budget law, where the change to the current work mechanism and the shift towards a “program budget” was discussed in detail.

Al-Daraji explained that the program budget for the year 2027 will include, in its first phase, the Ministry of Electricity and the governorates of Diwaniyah and Salah al-Din, indicating that the plan set for the 2028 budget will expand to include five ministries and five other governorates, so that the new structure will continue to be gradually generalized to the rest of the state institutions in subsequent years.

The member of the Finance Committee pointed out that the application of the program budget aims primarily to preserve public funds, and to control and regulate financial spending channels in accordance with the government’s strategic vision, specifically within the investment budget items.

This comes in conjunction with the Parliamentary Finance Committee hosting, on July 7, Finance Minister Faleh al-Sari and senior officials in the ministry, to discuss the financial and economic situation, and the mechanisms for preparing the draft federal general budget for 2027.

During the meeting, Uday Awad, Chairman of the Finance Committee, affirmed that the committee is committed to supporting and enacting laws that contribute to addressing financial challenges, developing non-oil resources, and enhancing the state’s financial sustainability.

For his part, Al-Sari confirmed that the 2027 budget project includes a phased plan to implement the program and performance budget, starting with a number of governorates as a pilot model, to be gradually generalized to include all governorates of Iraq.

It is worth noting that the Cabinet had approved last June, under the direction of Prime Minister Ali Faleh Al-Zaidi, the formulation of a “program budget” in coordination and joint cooperation with the World Bank and the Parliamentary Finance Committee, to advance the economic reform process in the country.

Following that, the advisor to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, revealed that the Ministry of Finance has begun preparing the draft federal general budget law for 2027, in the first new budget that Iraq has begun to formulate after two years of not approving a federal budget.

The government’s commencement of preparing the 2027 budget comes after two years of the absence of an effective federal budget with approved schedules, as the 2025 budget schedules were not approved, nor was a budget law approved for 2026, despite the House of Representatives, under the government of former Prime Minister Mohammed Shia al-Sudani, approving the three-year budget law for the years 2023, 2024 and 2025.

The 2025 budget, in its updated form, could not be implemented after its schedules were not approved within the House of Representatives and the fiscal year ended, which prompted the Ministry of Finance to adopt a temporary disbursement mechanism at a rate of 1/12, based on the Financial Management Law, to secure salaries, governing expenses and basic obligations.

The 2026 budget was also not approved due to the political complexities and economic pressures resulting from regional tensions and energy market volatility, so Iraq continues to manage its spending according to the temporary spending mechanism while awaiting a new federal budget that will end this financial deadlock.

Shafaq.com

Trump: Next week we will announce a major oil partnership with Iraq

US President Donald Trump announced on Tuesday evening that a major oil partnership with Iraq will be announced next week.

During his meeting with Iraqi Prime Minister Ali al-Zaidi at the White House, Trump said that next week would see the announcement of a major oil partnership with Iraq, in addition to the conclusion of major trade deals. MiddleEast news

On Tuesday afternoon, Iraqi Prime Minister Ali Faleh al-Zaidi met with US President Donald Trump at the White House, according to a statement from the Prime Minister’s media office.

Al-Zaidi arrived in the US capital, Washington, on Monday, at the head of a high-level delegation that included a number of ministers, officials, investors and business owners, on an official visit that will last for seven days.

On Monday evening, a senior US administration official revealed details of the files and basic demands that US President Donald Trump will put on the table for discussion with Iraqi Prime Minister Ali al-Zaidi, ahead of their anticipated meeting at the White House on Tuesday at 11:00 AM Washington time.

The official, who requested anonymity, told Shafaq News Agency that the United States stands by Iraqi efforts to realize Iraq’s full potential as a force for stability, prosperity and security in the Middle East.

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Al-Zaidi meets Trump at the White House

Iraqi Prime Minister Ali Faleh al-Zaidi met with US President Donald Trump at the White House on Tuesday, according to a statement from the Prime Minister’s media office. News

Al-Zaidi arrived in the US capital, Washington, on Monday, at the head of a high-level delegation that included a number of ministers, officials, investors and business owners, on an official visit that will last for seven days.

On Monday evening, a senior US administration official revealed details of the files and basic demands that US President Donald Trump will put on the table for discussion with Iraqi Prime Minister Ali al-Zaidi, ahead of their anticipated meeting at the White House on Tuesday at 11:00 AM Washington time.

The official, who requested anonymity, told Shafaq News Agency that the United States stands by Iraqi efforts to realize Iraq’s full potential as a force for stability, prosperity and security in the Middle East.

Shafaq.com

Exclusive: Al-Zaidi seeks a new military partnership with Washington after the coalition

On Tuesday, the spokesman for the Commander-in-Chief of the Iraqi Armed Forces, Sabah al-Nu’man, revealed that Baghdad intends to establish a bilateral military partnership with the United States after the end of the international coalition’s mission, while emphasizing that the issue of restricting weapons to the state is a “sovereign Iraqi decision” that is being worked on according to a purely governmental vision, and there is no external coordination regarding it . MiddleEast news

This came during a special interview with Shafaq News Agency, ahead of the anticipated meeting between Prime Minister Ali al-Zaidi and US Secretary of Defense Pete Hegseth at the US Department of War (the Pentagon), coinciding with joint meetings between delegations from the Iraqi and US Ministries of Defense .

Al-Nu’man said that the upcoming talks will focus on “the future of the military relationship between Iraq and the United States after the end of the international coalition’s mission,” indicating that Baghdad is looking forward to building a strong bilateral partnership with Washington in the areas of training, arming, intelligence and raising the capabilities of the Iraqi armed forces .

He added that “Iraq has made great progress in consolidating internal security, and despite the tensions in the region, the security situation inside the country is stable thanks to the readiness of the armed forces and their ability to impose security.”

The spokesman for the Commander-in-Chief of the Iraqi Armed Forces indicated that the Iraqi delegation’s visit also carries a message to international companies that “Iraq enjoys a stable security environment that qualifies it to receive foreign investments.”

Regarding the issue of restricting weapons, Al-Nu’man stressed that “this issue represents a purely Iraqi decision, based on the mandate of the Iraqi people, the will of the House of Representatives, and the directives of the religious authority.”

He stressed that Prime Minister Ali al-Zaidi has made this file a government priority, with the aim of ensuring that security and military decisions are entirely in the hands of the state and the Commander-in-Chief of the Armed Forces .

Al-Nu’man revealed that “the coming days will witness the joining of other factions to the official security institutions,” noting that the government has made significant progress in implementing this path .

In response to a question from Shafaq News regarding coordination with the US administration on the issue of restricting weapons, Al-Nu’man categorically denied this, saying that “the decision is entirely Iraqi, and the mechanisms for its implementation were put in place by the Prime Minister, and no external party is involved in its formulation or management.”

He concluded by noting that the Prime Minister had formed a central committee, headed by the Deputy Commander of Joint Operations and including the Military Secretary, which operates under his direct supervision, with the aim of completing this file and bringing it to a final conclusion .

Iraqi Prime Minister Ali al-Zaidi arrived in Washington, D.C., on Monday, leading a high-level delegation that included a number of ministers, officials, investors and business owners, for an official visit that will last seven days.

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