AGP Executive Report

Iran Funeral Diplomacy: Iran kicked off a six-day public mourning for slain Supreme Leader Ayatollah Ali Khamenei in Tehran, with the coffin lying in state at Imam Khomeini’s Mosalla and crowds chanting “Death to America” and “Revenge,” as authorities shut streets and tighten security; the ceremonies run through July 9 with stops planned in Qom, Najaf and Karbala before burial in Mashhad, while foreign leaders—including Iraqi President Nizar Amedi and Kurdistan Region President Nechirvan Barzani—attend. US-Iran Tensions: US President Trump claimed Washington paused Iran talks for a week to allow the funeral, as Iran warns against any US-Israeli aggression during the rites. Regional Security: In Iraq, the Counter Terrorism Service killed an alleged ISIS militant in an operation north of Kirkuk, part of ongoing clearance efforts against remnants. Energy/Trade Watch: Gulf oil exports rose in June as shipping through the Strait of Hormuz improved, though flows remain below pre-war levels—an issue Iran is also using in its broader regional posture. Local Governance & Culture: Baghdad is pushing a cinema revival, aiming to rebuild Iraq’s film industry after years of conflict and neglect.

Iran Funeral Diplomacy: Iran began a week of state mourning for slain Supreme Leader Ali Khamenei, with top Iranian leaders and major foreign delegations paying respects in Tehran as ceremonies run through July 9 and include rites in Iraq’s Najaf and Karbala. US-Iran Tensions: Reports say the US warned countries against attending, while Iran threatened “harsh retaliation” if any attack targets the funeral. Iraq Anti-Corruption Politics: Iraq’s anti-graft drive keeps expanding, with fraudsters accused of blackmailing people using the Al-Jumaili corruption case, and Prime Minister al-Zaidi backed by Muqtada al-Sadr’s call for peaceful rallies supporting reform. Budget & Economic Shift: Iraq aims to lift non-oil revenues to about 45% of total public income within 10 years, relying on tax/customs reforms and banking changes to cut oil dependence. Regional Security & Energy: Iraq and Turkey discussed keeping oil exports flowing amid pipeline deadlines, while Iran’s funeral also spotlights the wider Shia-Iran alignment and its regional reach.

Khamenei Funeral Diplomacy: Iran says officials from 100+ countries will attend Ayatollah Ali Khamenei’s week of mourning, with Tehran ceremonies starting Friday and the body later moving to Qom, Najaf, Karbala, and Mashhad. Regional Security: Iran’s top military leadership warned the US and Israel against any “miscalculation” during the funeral, as Tehran prepares for tight security amid fears of renewed strikes. Iraq-Iran Religious Route: Multiple reports say the procession will cross into Iraq for Shiite holy-city rites, turning the event into a major political and diplomatic moment for Baghdad and the wider region. Iraqi Governance: In parallel, Iraq’s PM ordered intensified anti-corruption enforcement, directing law enforcement and oversight bodies to track suspects and recover public funds after the “Operation Dawn” raids. International Fallout: US-Iran indirect talks are reported to be paused until after the burial, while foreign delegations continue arriving in Tehran ahead of the main ceremonies.

Iraq-Iran Regional Tensions: The New York Times reports US officials feared Israel could target top Iranian negotiators during US-Iran ceasefire talks, prompting warnings to Iran about figures including parliament speaker Mohammad Bagher Ghalibaf and FM Abbas Araghchi. Khamenei Funeral in Iraq: Iran’s state funeral for Ayatollah Ali Khamenei is set to include ceremonies in Iraq’s Najaf and Karbala, with Iraqi organizers saying millions are expected and that Baghdad will be skipped due to preparation time. Security Warnings: Iran’s IRGC commander warned the US and Israel against any “miscalculation” as Tehran and Iraq prepare for the mourning period. Iraq-Gulf Diplomacy: In Baghdad, Iraq’s FM Fuad Hussein met GCC chief Jasem Albudaiwi, with both sides backing closer ties and Iraq’s move to refer attacks against Gulf states to the judiciary. Anti-Corruption Push: Prime Minister Ali Al-Zaidi reiterated the need to protect the Iraqi state and fight corruption, citing looted funds since 2003 exceeding $2 trillion. Turkey-Iraq Energy Pressure: Türkiye is pressing Iraq to run the Kirkuk-Ceyhan pipeline at full capacity before July 27, warning of export disruption if no deal is reached. Regional Shock: Iraq condemned a deadly Damascus cafe bombing that killed at least six and wounded 22, calling it a violation of humanitarian values and international law.

US-Iraq Financial Ties: The US has partially resumed air shipments of US dollars to Iraq after a months-long suspension, with Iraqi PM adviser Mudhar Muhammad Salih and PM spokesman Haider al-Aboudi saying the “problem has been resolved,” while Washington’s broader security cooperation limits tied to Iran-backed militia pressure remain in place. Iran Funeral Diplomacy: As Iran prepares for Ayatollah Ali Khamenei’s July 4-9 state funeral, Iran warns the US and Israel against “miscalculation,” and Iran-Iraq coordination is underway for ceremonies in Karbala and Najaf. US-Iran Talks in Doha: Indirect technical talks in Qatar ended without clear progress on a lasting peace, focusing on Strait of Hormuz management and unfreezing Iranian funds, with the next round expected after funeral processions. Energy & Trade: Türkiye and Iraq discussed energy cooperation ahead of the Iraq-Türkiye crude pipeline deal expiry on July 27. Ports & Investment: Iraq plans to invite bids for the remaining piers at the southern Faw port after South Korea’s Daewoo E&C completed the main jetties. Governance & Money: An Iraqi PM legal adviser says stolen public funds since 2003 exceed $2 trillion, with corruption trials promised to be public.

Parliament & Cabinet: Iraq’s Parliament will open its second legislative term of 2026 next Sunday or Monday, after bloc leaders agreed on key bills and gave Prime Minister Ali al-Zaidi more time to name the remaining nine Cabinet picks before a follow-up vote. Anti-Corruption & Governance: The Green Zone raids and anti-graft push continue to shape politics as officials face arrests and legal fallout, while the PM signals a wider crackdown on entrenched corruption. Housing & Services: Babil Province says it has readied over 60,000 residential land plots for eligible families as part of a broader one-million-plot housing drive, with plans to use surplus land for solar power stations. Regional Security: Senior Iraqi leaders are set to attend Iran Supreme Leader Ali Khamenei’s funeral, underscoring Iraq’s role in Tehran-linked political and religious diplomacy amid wider Gulf tensions. Security & Intelligence: Türkiye’s intelligence chief Ibrahim Kalın visited Kirkuk and met Iraqi officials in Baghdad to discuss strengthening security and intelligence cooperation. Earthquakes: Iraq’s meteorology and seismology body recorded 22 quakes in June (magnitude 1–4.4) across multiple governorates, highlighting ongoing seismic risk.

Anti-Corruption Crackdown: Iraqi Prime Minister Ali al-Zaidi’s “Dawn Crackdown” is widening in Baghdad, with commando forces surrounding the Green Zone and authorities reporting 67 detainees in the first 24 hours, as the campaign targets lawmakers, officials, and suspected networks tied to public funds. Security & Enforcement: Officials also stepped up inspections of government vehicles across highways to stop the movement of money and documents linked to investigations. Green Zone Incident: Shrapnel reportedly hit vehicles in eastern Baghdad after air defenses intercepted a drone over the Green Zone, with no casualties reported. Power Sector Shake-Up: Iraq’s electricity minister dismissed Diyala’s distribution chief and reshuffled leadership, while broader inquiries in Basra’s power sector led to dismissals and referrals to the Integrity Commission. Pilgrimage Services: The PM chaired preparations for Arbaeen, directing upgrades for transport, telecom services, electricity, fuel, and medical support for pilgrims. Regional Tech Push: Iraq’s telecom ministry highlighted fiber-optic expansion and a Qatar-linked cross-border transit deal aimed at positioning Iraq as a regional data gateway. International Waters Tension: Iran’s state TV reported a ship ran aground in the Strait of Hormuz after not using Iran’s approved route, amid renewed disputes over passage fees and US-Iran talks in Doha. Viral Raid Claims: Social media circulated unverified allegations about “golden underwear” and large cash and gold finds in MP raid claims, mixing two separate cases with details not confirmed by Iraqi authorities. Sports Oversight: The Iraqi Olympic Committee said it will investigate Iraq’s winless World Cup campaign and set a roadmap with the football association to prevent a repeat. Banking Governance: Region Trade Bank announced a new international board focused on financial integrity and sanctions compliance, signaling deeper regional financial integration.

Anti-Corruption Push: Iraq’s “Dawn Crackdown” continues to expand, with courts and investigators moving against officials and networks tied to illicit enrichment and misuse of public funds, including a Basra-linked arrest after former Oil Ministry undersecretary Adnan al-Jumaili’s confessions and a separate Iraqi Airways corruption probe that recovered about $12.3M. Legal Accountability: Baghdad’s Al-Karkh civil court ordered lawmaker Alia Nassif to pay damages over media statements deemed harmful to a plaintiff’s reputation. Judicial Cooperation: Iraq signed a strategic cooperation deal with Eurojust, becoming the 10th non-EU partner to strengthen cross-border action against terrorism and serious organized crime. Elections & Parliament: IHEC named substitute MPs to fill five parliamentary seats vacated by ministers. Regional Diplomacy: Iraq’s FM said the GCC sent a message calling for renewed dialogue, while stressing Baghdad’s commitment to UN resolutions and opposition to expanding hostilities in the Gulf. Local Governance: Nineveh lifted restrictions on building permits around Mosul outskirts on legally registered land, aiming to settle long-running property disputes. Environment & Industry: Tuz Khurmatu authorities pledged legal action against polluters, citing emissions from fuel burning, gas flaring, and asphalt plants. Infrastructure Needs: Al-Diwaniyah says it needs about $763M to finish development projects through mid-2027. Sports & Facilities: Kirkuk moved to speed up Olympic Stadium reconstruction to meet league requirements.

Anti-Corruption Drive: Iraq’s new prime minister Ali al-Zaidi is pushing “Operation Dawn” style raids, with officials reporting cash seizures and high-profile arrests across Iraq’s political spectrum, while the government moves to formalize recovered funds through a dedicated finance account and a draft asset-recovery law. Militia Disarmament Deadlines: Baghdad reiterated deadlines for Iran-aligned armed groups to surrender weapons and coordinate with international partners, tying the timeline to recent attacks on US facilities. Regional Diplomacy: Iraqi Foreign Minister Fuad Hussein visited Syria for talks with President Ahmad al-Sharaa and others, focusing on security coordination and expanding cooperation as Iraq resumes limited oil exports via Syrian territory. Energy Corridor Talks: Iraq and Syria also discussed reviving oil pipeline links and forming a joint committee to follow up on energy, water, and agriculture projects. Kurdistan Security Reform: In Erbil, the Peshmerga minister hailed reforms under the KRG’s ninth cabinet, including unifying two Peshmerga commands under the ministry’s umbrella. World Cup Politics: Iraq’s winless World Cup campaign remains under scrutiny as fans and officials debate what went wrong after heavy losses.

Anti-Corruption Crackdown: Iraq’s “Dawn Crackdown” is in full swing after the government reaffirmed Sept. 30 as the deadline for surrendering unlicensed weapons and launched mass arrests in Baghdad’s Green Zone, with PM Ali Al-Zaidi saying there will be “no red lines” and no immunity for anyone stealing public funds; lawmakers, officials, and businessmen are among those detained, while courts and investigators report major asset seizures, including a former tax chief and his wife sentenced for money laundering and investigators seizing $11 million tied to a detained deputy oil minister. Political Backing: Iraq’s Sunni National Political Council and Badr lawmakers publicly backed the campaign, while tribal leaders in several provinces said they will withdraw protection from corruption suspects. Regional Diplomacy: Iraq and Syria agreed to form joint committees to boost energy, water, agriculture, transport, and border cooperation after Damascus talks, as Iraq’s FM also met Syrian interim leadership. Iran-Iraq Tensions & Talks: Iran denied US-Iran Doha meeting claims but said an expert team will pursue release of Iranian assets; meanwhile, Iran reportedly pressured Baghdad over Iranian Kurdish opposition groups in Kurdistan. Khamenei Funeral Logistics: Iraq approved Iran’s request for a July 8 funeral itinerary in holy cities, with Karbala and Najaf officials confirming Arbaeen-style public arrangements. Energy & OPEC Pressure: Iraq’s push for a bigger OPEC quota is driven by revenue pressures from the Iran war and export disruptions, raising the risk of a new clash inside OPEC.

Anti-Corruption Sweep: Iraqi Prime Minister Ali al-Zaidi says the crackdown is only the “first phase,” vowing “no immunity for any corrupt person” and that weapons must be limited to the state, as authorities arrest dozens of officials and lawmakers after confessions tied to former Deputy Oil Minister Adnan al-Jumaili, with the number detained reported at 47 and expected to rise. Public Finance Snapshot: Central Bank of Iraq data shows bank deposits fell to about $66.8B at end-April 2026, down from end-2025, with both central government and private-sector deposits declining. Drug Enforcement: Iraq’s Interior Ministry says anti-narcotics forces seized 29 kg of hashish in an intelligence-led operation, after tracking a suspected dealer using GPS and surveillance. Regional Diplomacy & Security: Iran’s foreign minister Abbas Araghchi urged Iraq and neighbors to build a regional security mechanism without foreign military interference, warning against US and Israeli breaches as talks around the Strait of Hormuz remain fragile. Markets: Gold prices slipped in Baghdad and Erbil, with 21-carat imported gold quoted lower in wholesale and retail markets.

Anti-Corruption Crackdown: Iraqi Prime Minister Ali al-Zaidi’s campaign moved into high gear as elite Counter Terrorism Service units raided Baghdad’s heavily fortified Green Zone, detaining 47 suspects including MPs and senior officials; the operation followed judicial arrest warrants and testimony tied to Iraq’s oil sector, with authorities also citing seized funds and ongoing phases. Legal Defense Pushback: The Iraqi Bar Association said it will not provide legal defense for those accused in the sweep, while urging rule-of-law safeguards and fair process. Green Zone Lockdown: Access to the Green Zone stayed restricted amid raids and enhanced inspections, with travel bans reported for suspects. Iran-Iraq Diplomacy: Iranian Foreign Minister Abbas Araghchi met Iraqi leaders in Baghdad, coordinating preparations for Ayatollah Ali Khamenei’s funeral across Iraqi holy sites and discussing regional stability, payments for Iranian gas, and possible release of frozen assets under the US-Iran MoU. Hormuz Tensions: Araghchi reiterated that Iran alone manages and fully controls Strait of Hormuz traffic, warning that any outside arrangements would delay reopening and raise tensions as US-Iran strikes continue to roil the region. World Cup Fallout (Iraq): Former defender Bassem Abbas called Iraq’s 2026 World Cup run “disappointing,” after the team lost all three group matches.

Anti-Corruption Crackdown in Baghdad: Iraqi security forces sealed off Baghdad’s Green Zone and carried out raids early Sunday, targeting “several politicians” and lawmakers under judicial arrest warrants tied to financial and administrative corruption, with videos showing armored vehicles and tanks and reports of at least eight arrests. Political Signals Ahead of US Talks: Prime Minister Ali al-Zaidi is sending “positive signals” to Washington ahead of a mid-July visit, stressing a shift toward an economic partnership with the US while insisting Iraq will not accept “dictates,” and urging armed groups to work through the state. Iran-Iraq Diplomacy: Iranian Foreign Minister Abbas Araghchi arrived in Baghdad for talks with Iraqi officials on bilateral ties, regional developments, outstanding dues and frozen funds, and security concerns, including preventing anti-Iran groups from operating from Iraqi territory. Green Zone Raid Meets Regional Tension: The crackdown unfolds as Iran and the US trade strikes and accusations around the Strait of Hormuz, keeping regional instability high. Jobs Pressure in the Provinces: Hundreds of graduates protested in Diyala and Kirkuk demanding government jobs and faster recruitment, with unemployment stretching for more than a decade for some.

Iraq–Water Crisis: Iraq’s Ministry of Water Resources agreed to restore normal operations at the Al-Yaou water regulator in Najaf within 48 hours and release extra water from the Haditha Dam after a closure sparked fears of shortages for southern provinces and damage to agriculture and marshlands. Protest Crackdown: In Wasit’s Kut, security forces arrested protesters after a fourth straight night of demonstrations over worsening electricity cuts, with reports of road blockades, clashes, and injuries amid a heatwave. Security & Drones: Iraqi forces recovered an unidentified drone in Baghdad’s Nahrawan district; initial checks found no explosives, as courts move to apply anti-terror rules against unlawful drone use. Foreign Policy: Prime Minister Ali al-Zaidi told Sky News Iraq is seeking a stronger economic partnership with the US while keeping balanced ties with Iran, and said the US-led coalition’s combat mission will end and forces will leave by September. Regional Politics: Parliament Speaker Haibet al-Halbousi condemned Iranian attacks as violations of Arab sovereignty, while backing the US-Iran understanding aimed at easing tensions. Connectivity: Kirkuk International Airport launched its first direct flight to Beirut via Iraqi Airways. Judicial Cooperation: Iraq’s Supreme Judicial Council said international judicial coordination has helped foil terrorist crimes across Arab and European countries and the US. Kurdistan–Turkey: Turkey’s Erdogan says a legal framework for the PKK peace process will be submitted to parliament in mid-July after the NATO summit. Kurdistan–Iran Drone Incident: Tourists found an Iranian Arash-2 drone in Erbil’s Soran district, preserved intact after a snow-covered crash.

OPEC & Oil Politics: Iraq is again warning it may leave OPEC unless its production quota is raised, while the oil ministry denies any plan to exit and says Baghdad is pushing for a reassessment to restore exports and output. Kurdistan Rights & Justice: Kurdistan Region President Nechirvan Barzani renewed calls for the Iraqi federal government to compensate victims of the 1988 Anfal genocide, citing tribunal rulings that the campaign amounted to genocide and crimes against humanity. Ashoura Security & Society: Massive Shiite crowds marked Ashoura amid the wider Iran-Israel-U.S. war fallout, while Iraq’s Karbala authorities rolled out extensive security measures for the holy day. Environment & Heritage: Al-Anbar faces growing disruption from water hyacinth spreading along Euphrates waterways, and Iraq has listed the 1,500-year-old Al-Aqiser Church near Ain al-Tamr for urgent restoration as neglect and climate pressures worsen deterioration. Regional Security Spillover: Iran’s Kurdestan province reported a deadly armed attack on a police checkpoint near the Iraq border, underscoring cross-border tensions.

Iraq’s OPEC Row: Baghdad is pushing back on reports it may leave OPEC, with the oil ministry saying Prime Minister Ali al-Zaidi did not raise withdrawal and that quota requests are handled through OPEC’s technical, consensus process. Corruption Fallout: A senior Iraqi official reignited a dispute over missing public revenues, alleging tens of millions of dollars and billions of dinars were stolen via fake contracts, as Baghdad faces pressure ahead of al-Zaidi’s mid-July U.S. visit. Hormuz Tensions: Iran and the U.S. are trading claims over a new Hormuz communication line meant to prevent escalation, while the U.S. says it struck Iranian targets after a drone attack on a cargo ship. Ashoura Observed: Massive Shiite crowds marked Holy Ashura across Iraq and the region amid the wider Iran-Israel-U.S. war fallout. World Cup, Iraq in Toronto: Iraq and Senegal meet in Toronto in a must-win Group I finale, with Iraqi fans marching to the stadium as both sides chase a slim path to the round of 32.