The President of the Republic affirms the development of Iraq’s foreign relations and calls for the approval of the oil and gas law.

Iraqi oilPresident Abdul Latif Rashid affirmed on Tuesday that Iraq’s foreign relations are witnessing positive developments, both with neighboring countries and the international community.
Rashid said in a press statement, “The water issue represents a sovereign and vital issue for Iraq, and it is necessary to strengthen diplomatic relations with neighboring countries, especially Turkey, Iran, and Syria, in order to ensure a fair and sufficient share of water that meets the country’s needs.”

He added, “It is important to work on reforming domestic policies in water resource management,” noting that “it is the responsibility of the federal government and the Kurdistan Region to build strong relations based on cooperation and understanding to achieve the aspirations of all citizens.”

The President continued, “The failure to pass an oil and gas law has contributed to the lack of detailed regulation of oil production, export, and revenue distribution mechanisms.” He explained that “the recent agreement between the federal government and the Kurdistan Region on the oil file is a positive and important step toward building trust, but it requires permanent legal consolidation through the adoption of an oil and gas law, which represents the true guarantee of a stable and sustainable relationship between the two parties.”

Alforatnews.iq

In America’s absence, China seizes Iraqi oil in September

The majority of Iraq’s seaborne crude oil exports went to Asian countries, with China, India, and South Korea accounting for the largest share in September, according to official figures.

The details of daily exports are as follows:

China: 1.106 million barrels per day, up 34,000 barrels per day from the same period last year.

India: 873,000 barrels per day, up 39,000 barrels per day compared to September 2024.

South Korea: 293,000 barrels per day, up 6,000 barrels per day from last year.

Meanwhile, European countries also recorded an increase in their imports of Iraqi oil, as follows:

Greece: 197,000 barrels per day, compared to 192,000 in September 2024.

France: Its imports jumped to 134,000 barrels per day, compared to 45,000 in the same month last year.

Iraqi oil exports continue to support the national economy and enhance Iraq’s role in global energy markets, with a clear focus on meeting growing demand from both Asian and European countries.

Shafaq.com

Iraqi elections: Al-Sudani’s balance grants him US blessing for a “second term”

The upcoming Iraqi elections represent a major turning point in the country’s history, potentially reshaping the political system. There appears to be an early indication from the United States that it is prepared to engage with Mohammed Shia al-Sudani if ​​he serves a second term as prime minister, according to the oil-focused website Oil Price.

The website noted the presence of several vital geopolitical issues, with China currently controlling two-thirds of Iraq’s oil production, while the United States and its allies are intensifying their multibillion-dollar investments in the energy sector to counter growing Chinese influence.

According to the US report, translated by Shafaq News Agency, the Iraqi elections scheduled for November could represent a pivotal turning point since the overthrow of former President Saddam Hussein in 2003. The report noted that the voting process, and the subsequent steps to select a president and appoint a prime minister, will be complicated by the absence of conclusive electoral results due to the proportional representation system. The report considered this process to be crucial not only for Iraq, but also for all major powers in the world in the coming years.

The report explained that there are significant stakes for the United States and China, as evidenced by the size and scope of their investments in Iraq’s main economic driver, the energy sector. It indicated that Washington lost much of its influence on the ground over time after the overthrow of Saddam Hussein, while China took advantage of this vacuum, with the help of both Russia and Iran.

He added that this shift in Iraq’s engagement with China rather than the United States has accelerated since 2018, following Washington’s withdrawal from the nuclear agreement with Iran, which uses Iraq as an arena for its “insurgency.” It further accelerated after the end of the US combat mission in Iraq in December 2021, coinciding with escalating tensions in the trade war between Washington and Beijing. These factors have prompted China to accelerate its investments in Iraq without significant restrictions.

According to the report, Chinese companies now manage more than two-thirds of Iraq’s oil production, control more than a third of its proven oil reserves, and hold controlling stakes in several vital oil and gas infrastructure projects, including ports and refineries.

In contrast, the United States and its allies, particularly Britain and France, have begun to counter this Chinese expansion by pumping massive investments into giant oil and gas projects, after years of hesitation due to corruption concerns. In this context, the report cited projects by TotalEnergies ($27 billion) and BP ($25 billion).

At the same time, the report stated that Russia continues to play its role, as mapped out by Beijing, by deepening the rift between the federal government and the Kurdistan Region.

The report indicated that these conflicting pressures are weighing heavily on current Prime Minister Mohammed Shia al-Sudani, whom it described as the most likely candidate to retain his position. The report praised his ability to maintain a delicate and exceptional balance between the various forces without unduly disturbing any party.

The report found that al-Sudani has primarily adopted a pragmatic approach. Despite his affiliation with the Shiite bloc, he belongs to the most moderate of its three main factions. His approach has been characterized by small, consistent steps in several areas, including the addition of major energy projects with major powers, the implementation of new infrastructure projects for roads and refineries, and the fight against corruption. This has had a positive impact on the return of major Western oil and gas companies to work in Iraq.

The report quoted sources close to the Iraqi Ministry of Oil as saying that Western companies are now largely satisfied with elements of the current contracts, which had previously been a source of concern, particularly regarding transparency.

According to a prominent source within the ministry, “Many Iraqis view al-Sudani as a centrist figure within the Shiite bloc, more nationalistic than the Coordination Framework, which is close to Iran, and less religious than the followers of Muqtada al-Sadr.”

The source added, “These voters hope that the Sudanese electoral coalition (Reconstruction and Development) will secure enough additional seats—perhaps around 50—to have a decisive influence in post-election negotiations, whether in selecting the president or naming the prime minister.”

Despite the Sadrist movement’s boycott of the elections, the report indicated that many of the movement’s voters may be inclined to support al-Sudani’s moderate nationalist agenda, rather than the pro-Iranian forces within the Coordination Framework.

The report indicated that a number of Shiite factions remain ideologically, financially, and strategically linked to Iran, and some have direct ties to the Popular Mobilization Forces. However, the report quoted the source as saying, “The desire to continue this deep relationship with Iran has begun to decline, especially among Iraqi youth.”

The report suggested that al-Sudani likely received support from Qais Khazali and Asa’ib Ahl al-Haq, despite former Prime Minister Nouri al-Maliki’s attempts to obstruct such support. The report noted that al-Maliki’s position appears to be tied to his personal ambitions to return to the premiership.

The report also noted that Khazali’s support would be beneficial to al-Sudani in his dealings with the Kurdish bloc, given his good relationship with Patriotic Union of Kurdistan (PUK) President Bafel Talabani. The report cited the close coordination between the two parties during the 2023 municipal elections, which contributed to strengthening the PUK’s position in Kirkuk.

Accordingly, the report anticipated the possibility of reaching an agreement to expand this alliance in support of Al-Sudani’s candidacy for prime minister again, especially since he is considered the most likely candidate to conclude mutual support deals with prominent political figures, most notably Mohammed al-Halbousi, who expressed his support for Al-Sudani’s efforts to implement a comprehensive development program focused on institutional reform, addressing the displacement issue, compensating victims of terrorism, and achieving economic recovery.

The report concluded by noting that al-Sudani’s re-assumption of the prime ministership would be a positive development for the United States and its allies, according to a senior legal source in Washington with ties to the US Treasury Department, who said: “Al-Sudani is someone we can work with.”

Shafaq.com

Parliamentary warning on the banking reform paper: It has made Iraqi money captive to foreign banks.

MP Haitham al-Fahd, representing the al-Asas parliamentary bloc, warned on Tuesday of financial paralysis that could befall Iraq due to the banking reform paper, noting that the paper came with US controls and placed Iraqi funds at the disposal of foreign banks.

Al-Fahd told Shafaq News Agency, “The banking reform paper recently issued by the Central Bank was dictated according to the regulations and instructions of the US Federal Reserve and sent from Washington to Baghdad.”

He pointed out that “this paper detailed in great detail the foreign capital invested in Iraq, specifically banks whose capital is Jordanian, Emirati, Bahraini, and Kuwaiti.”

Al-Fahd added, “Foreign banks, under the guise of Iraq, have rendered Iraqi capital weak and incapable of carrying out their duties. These banks have increased their capital from 200 to 400 billion dinars in record time.”

He explained that “the banking reform paper, which was written in Washington, made foreign banks and so-called investment banks the ones controlling Iraqi capital.”

The MP concluded his statement by saying, “Iraqi monetary policy at this stage has become captive to foreign capital, and these banks are the ones who control financial transfers. If they cease to operate, there will be significant economic and financial paralysis in Iraq.”

The Central Bank of Iraq has set a set of standards for reforming the banking sector, most notably increasing capital to 400 billion dinars by December 31, 2025. This is despite investors’ reluctance to subscribe to its shares due to sanctions, making this requirement nearly impossible to achieve, according to economic experts.

Shafaq.com

Iraq leads Arab countries in economic growth forecasts for 2026.

The World Bank forecast on Tuesday that the Iraqi economy will record the highest growth rate among Arab countries in 2026, at 6.7%, placing it first in the Arab world on the list of economic performance expected to grow next year.

This high growth reflects a clear improvement compared to the June 2025 forecast, supported by a recovery in the energy sector and increased oil exports, along with government efforts to boost infrastructure investment and diversify sources of income.

This anticipated performance is a positive indicator of the Iraqi economy’s recovery and renewed activity, in light of global and regional economic challenges.

Djibouti ranked second with an expected growth rate of 6.1%, followed by Qatar with 5.3%, then Palestine with 5.1%, while the UAE recorded growth of 5%.

Saudi Arabia’s growth forecast reached 4.3%, followed by Egypt and Morocco with rates approaching 4.2%, while growth rates in Lebanon, Oman, and Libya ranged between 3.5% and 3.6%.

Algeria, Bahrain, and Kuwait recorded moderate rates ranging between 2.5 and 3.1%, while Jordan and Tunisia recorded rates below 2.7%, and Yemen remained unchanged at 2.5%.

Shafaq.com

Masrour Barzani announces the Kurdistan Region’s readiness to support Baghdad with electricity.

Kurdistan Regional Government Prime Minister Masrour Barzani announced on Tuesday the region’s readiness to assist the federal government in providing electricity by leveraging the successful experience of the Ronaki project, reforming the banking system, and digitizing public services provided to citizens.

This came during his reception of the head of the National Wisdom Movement, Ammar al-Hakim, with whom he discussed the importance of resolving the outstanding disputes between the Kurdistan Region and the federal government, according to a statement received by Shafaq News Agency.

In this context, the recent tripartite agreement to resume oil exports from the region was highlighted, with the joint affirmation that this agreement will pave the way for the enactment of a federal oil and gas law.

The meeting also touched on the reforms implemented by the Kurdistan Regional Government in various sectors, particularly the Ronaki project to provide citizens with 24-hour electricity, in addition to activating the banking system, most notably the Hesabi project.

According to the statement, the two sides discussed the upcoming parliamentary elections, expressing their hope that they would usher in a new era of understanding and problem-solving, ensuring the protection of the rights of all components.

shafaq.com

The Iraq Development Fund signs memoranda of understanding with four major countries.

The Iraq Development Fund announced on Tuesday the signing of memoranda of understanding with four major countries, while indicating that Japan’s aid to Iraq amounts to billions due to its importance to it. The Executive Director of the Iraq Development Fund, Mohammed Al-Najjar, stated in a statement to the official agency, “The Iraq Development Fund is open to all countries of the world, and we have several memoranda of understanding with a number of countries, including three memoranda of understanding with the French side, two memoranda of understanding with Britain, and two memoranda of understanding with America, in addition to the memoranda of understanding with Japan.”

He also pointed out that “the interest in the memorandum of understanding with Japan is due to their presence in Iraq, as they have provided billions in aid to Iraq and have been supporting Iraq since the 1980s, making Iraq the most important country for Japan.”

He also stated that “the memoranda of understanding with Britain have been signed, and the French memoranda will be signed soon. The memorandum includes a water project and another project to recycle sewage water and convert it into irrigation water, which will reduce Iraq’s water scarcity. The third memorandum concerns the use of water purification plants in the Shatt al-Arab. These projects are ready and will be signed quickly.”

Burathanews.com

Lack of credit: Iraqi banks retreat from lending and become “trustless piggy banks.”

Some state-owned banks appear to have backed away from their credit plans for this year. In recent years, they had financed loans to citizens and the government to cover salaries and general expenses. This has raised questions about the future of the local banking system and public confidence in it.

An informed source told Shafaq News Agency, “Some government banks, including Rafidain Bank, have suspended loans and advances to citizens, abandoned the use of automation and electronic payments in completing transactions, and returned to the traditional paper-based system.” He pointed out that “requests are now subject to favoritism and nepotism, while the loans granted are limited and do not meet the need.”

The source added, “Automation plans aimed at addressing inefficiencies and expanding services have been put on hold, even though automated systems help speed up transactions and reduce operational costs.”

For his part, financial expert and former Central Bank director Mahmoud Dagher explained to Shafaq News Agency that “Iraqi banks will remain behind unless they establish an integrated electronic banking system that links their databases and provides modern deposit, investment, and borrowing services.”

Economist Dhurgham Muhammad Ali noted that “priority in credit granting currently goes to housing and solar energy loans as part of the Central Bank’s initiatives, as they are part of the government’s program,” noting that “other types of loans do not receive sufficient attention despite the availability of liquidity.”

Standard & Poor’s, the international credit rating agency, has classified the Iraqi banking system as “B-” (high risk), alongside Nigeria and Ukraine, noting that the country’s institutional framework and economic credit suffer from “very high levels of risk and weak competitive and financing dynamics.”

Shafaq.com

An oil expert explains the importance of the Baghdad-Kurdistan agreement and its impact on the global market.

Iraqi Oil expert Furat al-Moussawi considered the oil agreement between Baghdad and the Kurdistan Region a strategic and important agreement that paves the way for future legislation of a new oil and gas law. He noted that the next three months will be a litmus test of the extent of all parties’ commitment to its provisions.

During his appearance on the “Free Talk” program on Al Furat TV, Al-Moussawi said, “Iraq has suffered for more than twenty years from financial and economic problems that have affected the salaries of the region’s employees,” noting that “there are clear clauses in the agreement and others that remain ambiguous.”

He pointed out that “Iraq has been restricted in expanding industrial and development projects due to a production quota described as unfair, as its production ceiling has been set at 4.6 million barrels per day since 2018.”

Al-Moussawi explained that “Iraq attempted to negotiate with OPEC to increase its oil quota, but the negotiations did not achieve the desired results due to the quantities produced in the region outside SOMO’s quota. These quantities were deducted from Iraq’s OPEC quota and set at 1.4 million barrels from October 2024 until the end of October 2025, which harmed Iraq’s financial revenues and reputation within the organization.”

The expert discussed the demands of oil companies operating in the region, stating that “one of these demands was addressed by setting $16 as an approximate average figure, with an international company to determine the transportation and cost costs to pay those companies’ dues, amounting to approximately $1 billion, which was transferred to the federal government.”

He added, “The previous contract between the region and foreign companies was based on production-sharing, but a compromise formula was reached that allowed for the writing of a new law. Eight companies also requested to sign new contracts with the Baghdad government to guarantee their rights, with the federal government paying the companies $16 in kind through deducting oil quantities, not in cash. This was considered an achievement for those companies, with the agreement to postpone payment of the $1 billion.”

Despite the agreement’s importance, Al-Moussawi described it as “cautious due to its potential financial and legal risks,” noting that “Turkey seeks to cancel the Ceyhan pipeline and conclude a new agreement by the end of 2026, while Iraq has rushed to pump the region’s oil through the existing pipeline to increase its negotiating leverage with Ankara.”

He added, “The region’s oil companies are looking to sign formal international agreements with the federal government,” stressing that “Iraq will participate in the upcoming OPEC meeting on October 5, where it was agreed to raise its quota to 4 million and 220 thousand barrels per day, including between 800 and 900 thousand barrels for domestic consumption, with full commitment to the quota to strengthen its position in subsequent negotiations to increase it.”

Al-Moussawi explained that “Iraq views the Ceyhan pipeline as a strategic option for diversifying export outlets and preventing any smuggling attempts,” noting that “the region’s oil quantities will be counted toward Iraq’s OPEC quota,” noting that “oil derivative prices in the region are very high due to the reliance on private refineries.”

He concluded his remarks by stressing that “setting the 50% share for the region is not the end of the road, as Baghdad will work to raise it to 70% and also supply the region with kerosene and gasoline to ease the burden on citizens.”

Alforatnews.iq

Al-Sadr’s latest messages: a final warning to the political system and a warning of a dangerous predicament.

A source close to the leader of the Shiite National Movement, Muqtada al-Sadr, revealed on Tuesday the messages al-Sadr intended to convey in his final tweet on Monday.

Yesterday, al-Sadr responded to the threats recently circulated about a plot to assassinate him, saying: “Such leaks will not cause strife. We love our country and do not want it to be harmed. No one will respond to your strife. We are counting on the awareness and obedience of the (National Shiite Movement), as we have always known them.”

He added in a post on his personal account: “Everyone should expect, in the remaining days before the election, an escalation by those who love power, those who love positions, and those who salivate over money and positions.”

Regarding these messages, a source close to al-Sadr told Shafaq News Agency, “Sadr’s latest tweet is not just a passing position, but a strategic message carrying an early warning to the entire political system. Al-Sadr wanted to emphasize that despite withdrawing from the elections, he still holds the reins of the popular and political initiative.”

According to the source, who requested anonymity, “Al-Sadr also wanted to convey a message that any attempt to marginalize his movement would lead the country into a dangerous impasse. The core of the message was to reject the replication of consensus and quota systems, and to call for a national majority government or an effective opposition, which represents a serious reform option.”

According to him, “The future of the political and public landscape in Iraq depends on the response of other forces: either they side with reform and avoid chaos, or they face pressure from the Sadrist street, which remains the most important card in the Iraqi equation.”

The roots of this escalation go back to “opposition” activist Ali Fadel, who stated during a social media program that he possessed information about State of Law Coalition MP Yasser Sakhil’s intention to assassinate al-Sadr during his visit to his father’s shrine in Najaf using a drone.

Following this, security tensions erupted in Basra province last night following the deployment of members of Saraya al-Salam, the armed wing of the Shiite National Movement led by Sadr. This was in response to Ali Fadhil’s statements.

In response, MP Yasser al-Maliki issued a statement denying the accusations, describing the program’s content as “slander and falsehoods aimed at creating strife,” and affirming his intention to prosecute “everyone behind these allegations.”

Shafaq.com