Baghdad caught between Washington and Hezbollah: British report reveals Iraqi mediation efforts

The developments related to Iraq’s position on Lebanese Hezbollah reflect the hedging policy pursued by Ali al-Zaidi’s government, which is “unable” to completely separate itself from the factions linked to Iran, while at the same time flirting with the United States and the Gulf states, according to the British website “ Amwaj ”.

The website, in a report translated by Shafaq News Agency, indicated that a delegation from the party had met with al-Zaidi before his recent visit to Washington, where the Iraqi Prime Minister offered to mediate between the party and Washington to facilitate talks between them. Dailynews reports

The British website said in its report that the United States is exerting pressure against the Lebanese Hezbollah from Baghdad to Damascus and Beirut, adding that since the overthrow of Saddam Hussein’s regime after the 2003 invasion of Iraq, successive Iraqi governments have maintained strong ties with the Lebanese party.

However, the website noted in its report that recent developments have raised questions about whether this policy might change, recalling that the Iraqi Ministry of Finance quietly ordered Iraqi banks in mid-July to implement US Treasury sanctions against individuals and companies linked to the party.

The report also stated that the official gazette had listed Hezbollah and the Yemeni Ansar Allah movement as “terrorist” entities last November, before Baghdad quickly backtracked, blaming what happened on a technical error.

The report noted the incident on July 16 in which Syrian customs intercepted a shipment of weapons hidden in an oil tanker, believed to have been destined for Lebanon from Iraq.

According to the report, these two incidents show that the Iraqi government is caught between competing patrons, as Baghdad appears unable to decisively break away from the Iranian-aligned Iraqi armed factions at home, while courting Washington and the Gulf capitals abroad, adding that al-Zaidi adopted this hedge rather than clearly siding with either direction.

He went on to say that it was uncertain whether Baghdad would be able to maintain this position until the September 30 deadline for bringing armed factions under state control.

The report quoted regional analyst Emile Nakhleh, a former CIA officer, as saying that Baghdad is “getting closer to Washington,” noting that al-Zaidi is seeking to establish a closer relationship with US President Donald Trump, while distancing Iraq from Iran and Hezbollah.

According to the report, this assessment is consistent with the broader US campaign against Hezbollah’s financial and logistical affairs, which extend to Beirut, Damascus, and Baghdad. It notes that Washington has shown more willingness to use its influence over Baghdad to limit Iran’s regional presence, which was clearly demonstrated by US President Donald Trump’s objection to the nomination of State of Law leader Nouri al-Maliki for a third term as prime minister, and the threat of Iraq losing economic support, which led to the selection of al-Zaidi at the end of April.

After noting the ability of American desires to shape Iraqi policy, the report said at the same time that the coordinating framework, whose parties maintain deep ties with armed groups allied with Iran, leaves al-Zaydi with little room to make a decisive move against the Iraqi allies of Lebanese Hezbollah, pointing in this context to the leader of the Iraqi Hezbollah Brigades, Ahmed al-Hamidawi, who maintains close coordination with Lebanese Hezbollah, and who opposes Baghdad’s efforts to further integrate armed factions into the official state security structure.

The report quoted Ali Al-Mamouri, a researcher at Deakin University, as saying that “Hezbollah’s ties to Iraq are rooted in decades-long relationships with Iraqi Shiite opposition groups that developed during their exile in Syria and Lebanon throughout the 1980s and beyond,” adding that many of these figures now occupy influential positions within Iraq’s political and security institutions, noting that this long-standing relationship makes it unlikely that Baghdad will significantly change its stance to actively work against the party.

The report noted that the party’s designation as a terrorist organization in Baghdad was not addressed during Lebanese Prime Minister Nawaf Salam’s visit to Baghdad on July 26, as he discussed with al-Zaidi the revival of the Kirkuk-Banias pipeline and the possibility of extending it to the Lebanese coastal city of Tripoli.

The report went on to say that this engagement reflects how Washington is now positioning its economic incentives for both Baghdad and Beirut in bilateral relations in Iraq and Lebanon.

Faced with Washington’s increasingly firm stance, the British report said that al-Zaidi might seek to hedge as an active strategy rather than take a passive hedging position, quoting an official in the Lebanese Hezbollah as saying that al-Zaidi’s administration had offered to sponsor direct talks between the party and Washington.

According to the same source, a delegation from the Lebanese party quietly visited al-Zaidi in Iraq in early July, and during the talks, the Iraqi Prime Minister made “a proposal under which Iraq would sponsor and host talks between Hezbollah and the US administration.”

The report noted that the offer appeared to have preceded al-Zaidi’s trip to Washington, although the official did not clarify the party’s response.

The report continued, noting that Trump appeared to have left the door open to such Iraqi mediation, saying on July 21 that he would be willing to talk to Hezbollah leaders if Lebanese President Joseph Aoun thought it would be helpful.

Shafaq.com

The “Reconstruction and Development” bloc: The government pledged to send the Popular Mobilization Forces law to parliament within a week.

The “Reconstruction and Development” parliamentary bloc confirmed on Thursday that the government pledged to send the draft law on service and retirement for the Popular Mobilization Forces to the House of Representatives within about a week, expressing its regret that the legislation has turned into a tool for “consumption and political pressure”.

The head of the bloc, Bahaa al-Araji, said in a press conference held at the parliament building and attended by a correspondent from Shafaq News Agency, that the recent events that led to casualties among the Popular Mobilization Forces required urgent action towards legislating a law to preserve their rights.

He explained that the bloc had already begun writing a draft of the law and surveying the opinions of some political forces regarding it, adding that a signal had been received from the Prime Minister indicating that there was a draft law prepared by the government and that it would soon be sent to Parliament.

Al-Araji added that the bloc has set a deadline of about a week to send the government draft law on service and retirement for the Popular Mobilization Forces to the House of Representatives to proceed with its programming and legislation.

The Popular Mobilization Forces in Iraq were established in mid-2014 under the fatwa of “sufficient jihad” issued by the highest Shiite authority, Ayatollah Ali al-Sistani, following the fall of the city of Mosul to the “ISIS” organization. Iraqeconomy updates

In November 2016, the Iraqi parliament voted on a law legalizing the Popular Mobilization Forces as a security institution within the armed forces, but the law lacked clear organizational details, which opened the door to repeated demands for its redrafting and legal restructuring.

Shafaq.com

Iraq holds 174.6 tons of gold; its latest data dates back to 2025.

The World Gold Council’s table for August 2026 showed that Iraq’s gold reserves amounted to 174.6 tons, ranking it 28th globally, with gold constituting about 23.1% of its total reserves. Dailynews reports

According to the Council’s statistics, which were reviewed by Shafaq News Agency, the latest data for Iraq dates back to November 2025, meaning that the recorded quantity of gold, amounting to 174.6 tons, has not been updated in the table since that date, while the data for a number of countries dates back to months closer to the current period.

Iraq comes in third place in the Arab world in terms of gold holdings, after Saudi Arabia and the UAE, while the United States tops the list globally with reserves of 8,133.5 tons.

The World Gold Council’s methodology explains that official gold reserve data is based primarily on IMF statistics, with the date of the latest available data varying from country to country, as some countries may be late in reporting their data.

The World Gold Council had indicated in previous statements that Iraq’s holdings were stable at 174.6 tons, with no new purchases recorded during 2026 in the data available at that time.

Shafaq.com

The Toman under pressure: When the currency crisis becomes a mirror of the Iranian economy

The Iranian Toman crisis is no longer merely a fluctuation in the exchange market; it has become a reflection of the immense pressures facing the Iranian economy. The decline in the value of the local currency is now linked to a complex interplay of factors, most notably sanctions, military tensions, disruptions to shipping, and a drop in oil exports, coupled with high inflation. The problem is that the toman’s weakness is not confined to the currency market; it is rapidly impacting prices, production, and the purchasing power of ordinary citizens. Economicanalysis reports

Oil is one of Iran’s most important sources of foreign currency. According to July data, oil exports fell from about 1.7 million barrels per day in June to approximately 967,000 barrels per day in July. This decline not only represents a loss of oil revenue but also limits the flow of foreign currency the economy needs to finance imports and support economic activity. With sanctions, difficulties in financial transfers, discounts offered to buyers, and increased transportation risks, Iran’s ability to convert its oil wealth into actual revenue is becoming increasingly complicated.

And here lies the most dangerous link: **The decline in exports reduces foreign revenues, the shortage of foreign currency increases pressure on the Toman, and the weakening of the Toman raises the cost of imports and production, then the increase is passed on to prices and the citizen bears the final result.**

The danger of this equation becomes apparent when it comes to food and basic necessities. Families can postpone purchasing many goods, but they cannot postpone their daily needs. When prices rise faster than wages, the real value of income declines, even if nominal salaries remain constant or increase slightly. Thus, the Toman crisis transforms from a monetary issue into a cost-of-living crisis that directly affects the middle class and those with limited incomes.

But the currency crisis has another, equally dangerous dimension: **confidence**. When citizens or investors expect the value of the toman to continue depreciating, the desire to protect savings through dollars, gold, or real estate increases. As demand for alternative assets rises, pressure on the local currency intensifies, and the negative expectations themselves become a factor fueling the crisis.

In the long term, the impact extends to investment. Currency volatility makes it difficult for companies to estimate the costs of projects, equipment, and raw materials, leading some to postpone or reduce investment. Lower investment today means less productivity, fewer jobs, and less growth in the future.

Can the Toman regain its stability?

The answer is not solely related to intervention in the foreign exchange market. Currency stability requires increasing the economy’s capacity to generate foreign currency, ensuring regular oil exports, controlling inflation, improving the investment and production environment, and easing trade and financial restrictions.

Therefore, the real question is not to what level the toman can fall against the dollar, but rather **to what extent can the Iranian economy restore confidence and stop the erosion of purchasing power?**

If sanctions, tensions, declining revenues, and rising inflation persist, the toman will remain a reflection of broader economic depletion. However, if external easing is coupled with internal economic reforms and increased investment and production, the currency may regain some stability.

The future of the Iranian toman will not be determined by the exchange market alone; rather, it will depend on Iran’s ability to transform its oil wealth into production, investment, confidence, and sustainable growth.

Rawabetcenter.com

An economist says selling state assets is a waste of public funds, and investment is the best option.

Economic expert Hashim al-Haboubi warned against selling state assets, particularly those of the Ministry of Industry, under any pretext, describing such a move as a blatant waste of public funds and a squandering of the country’s economic resources.
In a statement to the Information Agency, al-Haboubi said, “The Ministry of Industry owns a large number of factories and plants with diverse and important production capabilities, which could generate enormous economic returns if they were to resume operations.” He pointed out that “their personnel are already present and receiving regular salaries from the state without any real productivity.”

He added that “the process of rehabilitating these massive factories and plants requires substantial financial resources that could burden the country’s general budget.” He explained that “the most suitable and optimal option for the government is to offer them for investment by specialized international and local companies.”
Al-Haboubi stressed his “categorical rejection of the trend of selling state assets in various sectors,” emphasizing that joint investment is the only way to revitalize national production without placing additional burdens on the state budget.

Almaalomah.me

Parliamentary Finance Committee: Iraq’s reserves secure salaries for 10 months and the financial situation is stable.

The Parliamentary Finance Committee announced on Tuesday that Iraq’s reserves of 109 trillion dinars are sufficient to cover salaries for 10 months, and indicated that employee salaries are fully secured. Committee member Mansour al-Baiji told the official news agency, as reported by Al-Maalomah News Agency, that “the committee met yesterday with Prime Minister Ali al-Zubaidi, Finance Minister Falih al-Sari, and Central Bank Governor Nizar Nasser Hussein,” adding that “the financial situation is good and reassuring.”

He further stated that “the Central Bank Governor confirmed during the meeting the existence of 109 trillion dinar reserves in the treasury, which is sufficient for approximately 10 months’ salaries, in addition to gold reserves and revenues,” noting that “salaries are fully secured.” He continued, “There are understandings between the Finance Committee, the Finance Minister, and the Central Bank Governor to develop solutions to overcome the financial crisis.” Iraqpolitical news

Almaalomah.me

The leaders of the framework agree to complete the government cabinet… Will it be passed without regard to Al-Halbousi’s whims?

Khalid Walid, a member of the Reconstruction and Development Coalition, confirmed on Tuesday that the leaders of the Coordination Framework agreed to proceed with completing the ministerial cabinet and ending the work of the ministries by proxy, during the meeting held by the Framework yesterday.

Walid told Al-Maalomah that “the CVs of the political forces’ candidates for the remaining nine ministries will be completed by next Saturday, and they will be voted on during a special parliamentary session at the end of next week,” noting that there is “a political agreement among the forces to end the state of the incomplete government cabinet and proceed with passing the proposed names, which are chosen by the Prime Minister.”

He added that “the meeting of the leaders of the coordination framework also discussed the financial crisis and mechanisms for securing employee salaries, as well as the government measures taken in this regard, and the extent of the government’s ability to restore confidence to citizens, especially with regard to the living conditions that directly affect their lives.”

Walid noted that “the meeting also discussed passing a number of important laws of the highest priority and legislating them within the House of Representatives,” pointing out that “the government has taken measures to ensure the payment of salaries, including internal borrowing and reducing operational expenses, as well as measures related to diversifying sources of oil exports to global markets.”

He explained that “the continuation of the government’s work in this manner and its management of a number of ministries by proxy is not useful,” indicating that “the government is facing major challenges at the financial and economic levels, in addition to the political and security challenges related to the harbingers of war in the region and its potential repercussions on Iraq.” MiddleEast news

He pointed out that “one of the most prominent issues facing the government is preparing a draft budget for next year, given the significant challenges posed by the current situation and regional developments, which necessitates well-considered government measures to ensure financial and economic stability.”

Almaalomah.me

“Full salary without working hours”: Parliamentary amendment sparks controversy over employee leave

The agreement by the parliamentary legal committee to raise the nominal salary of an employee during long-term leave from 50% to 100% has sparked widespread controversy regarding the financial and administrative implications of the proposal, while its supporters believe it gives the employee greater flexibility. Dailynews reports

Meanwhile, experts are raising questions about the cost of paying a salary to an employee who does not perform actual service, the fate of the job grade, and the calculation of the leave period for service and retirement purposes.

Member of Parliament’s Legal Committee, Muhammad Jassim al-Khafaji, told Shafaq News Agency that “the Legal Committee agreed to amend the percentage of the nominal salary within the proposed long-term leave law from 50% to 100%, so that the nominal salary is complete.”

He explained that “the proposal should not be reduced to the issue of salary only, as there are details relating to the duration of leave, working outside the government job, job and retirement rights, as well as the implications for the government owner.”

Al-Khafaji added that “the aim of the proposal is to give the employee an opportunity to benefit from his experience and abilities during the leave period, while maintaining his job position in accordance with the regulations that will be determined by law.”

He indicated that the proposal will be subject to discussion during the upcoming legislative stages, explaining that the final details will be linked to the text that the House of Representatives will approve after completing its legal stages.

Legal perspective

For his part, legal expert Haider Anis Al-Rubaie told Shafaq News Agency that “raising the nominal salary from 50% to 100% clearly changes the financial equation of the proposal, because the state will have a full financial obligation towards the employee during a period in which he does not perform actual service.”

According to Al-Rubaie, “The employee’s right to leave can be regulated legislatively, but this right is not absolute; rather, it must be consistent with the public interest, the continued operation of government facilities, and the protection of public funds.”

He explained that “the legislator is required to conduct a thorough financial study before enacting the law, to determine the number of employees expected to benefit from the leave, the duration of the leave, the amount of money that the treasury will bear, as well as the future effects on the pension system.”

Al-Rubaie pointed out that “the problem is not only related to the salary, but also to the job grade. If the grade remains reserved for many years, this may limit the state’s ability to invest it in supporting institutions that suffer from a shortage of staff.”

He continued, saying that “public service is not just a financial position, but a responsibility related to providing a service to citizens, and therefore any legislation should achieve a balance between the employee’s right and the public interest.”

An opportunity for change, but with conditions.

On the other hand, a number of employees view the proposal as an opportunity to take advantage of vacation years in different personal or professional circumstances.

Government employee Ali Hamed told Shafaq News Agency that “granting employees a full nominal salary during leave could be a good step for those who have special circumstances or wish to pursue a professional experience outside the government sector.” Dailynews reports

According to the employee, what is more important than the salary percentage is the clarity of the law, especially regarding the right to return to the job, job grade, promotion, and the calculation of the leave period.

Hamed explained that “employees need to know whether the leave will be available to all employees under the same conditions, or whether it will be subject to special approvals and procedures according to the needs of the department and the job structure.”

For her part, employee Sundus Jalil told Shafaq News Agency that “raising the nominal salary to 100% will make the proposal more attractive to employees, but at the same time it needs precise controls so that the leave does not turn into an open situation without a clear definition of rights and duties.”

She pointed out that “the employee wants guarantees regarding his job future, especially if the leave continues for years, as well as knowing the mechanism for returning to the job and whether the grade, promotion and retirement rights will remain preserved.”

Inflation and equal opportunities

The proposal comes amid an ongoing debate about the size of the government apparatus, with supporters arguing that giving employees the opportunity to work in the private sector could alleviate pressure on some institutions suffering from a surplus of employees, and allow the private sector to benefit from their expertise.

On the other hand, experts believe that the success of the idea depends on how job grades are managed during the vacation, especially if the vacation period is long and there is no actual need for the employee to return to his department during that period.

The legal expert believes that “protecting an employee’s job position should not be a reason to disrupt the opportunities of others, and therefore there should be clear controls regarding job grade during the leave period.”

Al-Rubaie believes that long-term leave can be part of a broader administrative reform, but it should not be a substitute for restructuring the government apparatus.

He concluded by pointing out that “good legislation is that which specifies the cases in which leave may be granted, its duration, its financial and retirement implications, the mechanism for returning to work, as well as preventing conflicts of interest and exploitation of the job position.”

Full salary… the turning point

It appears that amending the salary percentage from 50% to 100% will be one of the most prominent points of contention during the discussion of the law, after the proposal in its previous form granted the employee half of his nominal salary.

On the one hand, a full salary can give the employee greater financial security during the vacation period, and on the other hand, it increases the financial obligation on the state, making the number of beneficiaries, vacation durations, and the mechanism for calculating service crucial factors in determining the final cost.

Furthermore, the continued payment of salaries, if the text is approved in this form, requires the competent authorities to identify sources of funding and not burden the general budget with uncalculated financial obligations.

While supporters of the proposal see it as giving employees a new option and allowing them to gain professional experience outside of government employment, its critics warn that it could become a means of freezing job grades and continuing public spending without actual service.

Ultimately, the challenge for the legislator will be to reach a formula that achieves a balance between the employee’s right, the state’s need to reform its workforce, equal opportunities, the continuity of public facilities, and the protection of public funds.

A full nominal salary may make leave more attractive to employees, but at the same time it makes the legislator’s responsibility greater in setting precise controls that prevent long-term leave from turning into a frozen job and a continuous salary, and ensure that legislation is a tool for administrative reform and not a new burden on the public treasury.

Shafaq.com

Hours after their meeting with Qaani, a “private meeting” took place between al-Zaydi and leaders within the framework.

An informed political source reported on Tuesday that the leaders of the Coordination Framework held a “private meeting” with Prime Minister Ali al-Zaidi following a meeting with the commander of the Quds Force in the Iranian Revolutionary Guard, General Ismail Qaani.

The source told Shafaq News Agency that the meeting is currently being held at Al-Zaydi’s government headquarters, without providing further details.

The meeting came after a meeting held in Baghdad by the commander of the Quds Force in the Iranian Revolutionary Guard, Ismail Qaani, with leaders of the coordination framework on one hand, and leaders of armed factions on the other.

According to information obtained by Shafaq News Agency, Qaani drew a red line regarding the handover of weapons by Iraqi factions to the state, and stressed the need to avoid armed confrontation with security forces, before returning to Tehran.

A private source told Shafaq News Agency that Qaani stressed the need to exert political pressure on the government in order to reach a settlement formula that would prevent the handover of weapons at the present time, thus preventing the outbreak of conflict between the state and the factions.

Qaani’s move comes at a time when the Iraqi government is pushing to restrict weapons to the state, while these efforts are facing opposition from armed factions that see handing over their arsenal in the current circumstances as a threat to their political and security position.

The issue of armed factions is one of the most sensitive issues facing the Iraqi government, with the approach of September 30, which the main political forces have set as the deadline for restricting weapons to official institutions.

The State Administration Coalition, which includes the most prominent Shiite, Sunni and Kurdish political forces, stressed during its meeting on August 5 the need to restrict weapons to the state, and considered the parties that carry out activities that threaten the security of the country outside the framework of official institutions as “outlaws and must be fought.”

The coalition warned that any armed activity outside the framework of the state after September 30 would be dealt with according to the anti-terrorism law.

Following this, Iraqi security and military forces raised their readiness level throughout the country, and the leave of a number of commanders and officers was cancelled, while security agencies began implementing field movements and exercises in anticipation of any emergency or friction that might develop into an armed confrontation.

Last week, Baghdad witnessed hours of security tension coinciding with threats by armed factions to retaliate against Saudi Arabia after strikes targeted Popular Mobilization Forces sites, before it ended with contacts and a dawn meeting between Prime Minister Ali Faleh al-Zubaidi and Badr Organization leader Hadi al-Amiri, which led to a mutual calming and opened the way for diplomatic action to address the crisis.

Al-Amiri later called on the “Islamic Resistance” factions to postpone any military response against Saudi Arabia and to prioritize “Iraq’s higher interest,” but he returned and stressed during a meeting with a number of Popular Mobilization Forces leaders the importance of maintaining a high level of readiness.

The plan to restrict weapons does not have a unified position among the armed factions. While some forces have expressed a willingness to reorganize their military and security relationship with the state, other factions, including Kataib Hezbollah, Harakat al-Nujaba and Kataib Sayyid al-Shuhada, have announced their refusal to give up their military capabilities, and have linked any discussion about their weapons to the end of the presence of foreign forces and ensuring the protection of Iraq from external attacks.

The upcoming September 30th date also coincides with the deadlines related to ending the military presence of the international coalition in Iraq, which some factions use as a basis for linking the future of their weapons to the withdrawal of foreign forces.

Shafaq.com

Al-Zaydi: We are interested in attracting Korean investments to Iraq

Iraqi Prime Minister Ali Faleh al-Zaidi affirmed on Tuesday the government’s interest in attracting more South Korean investments to the country, during his meeting with South Korean Ambassador to Iraq Lee Joon-il. Dailynews reports

According to a statement from Al-Zaidi’s office received by Shafaq News Agency, the Korean ambassador delivered to him a written message from the country’s president, Lee Jae-myung, in which he expressed his congratulations on the formation of the government, and stressed the importance of strengthening relations and partnership with Iraq, in a way that serves the mutual interests of the two countries and the two friendly peoples, and enables Iraq to overcome the current international economic challenges.

During the meeting, Al-Zaydi pointed to the importance of developing bilateral relations between the two countries and working together to expand cooperation in various sectors, particularly investment, energy and technology, indicating Iraq’s keenness to cooperate and benefit from the work and expertise of South Korean companies operating throughout the country.

The Prime Minister also affirmed the government’s interest in attracting more South Korean investments to Iraq, especially in areas where the Korean side has extensive experience and meets the needs of the Iraqi market, such as the automotive and electronics industries, pointing to the opportunities and facilities provided by the government in this regard and its efforts to enhance the investment environment and economic reforms.

Shafaq.com