AGP Executive Report

US-Iran Escalation: The US and Iran traded the heaviest strikes in weeks, with Washington hitting Iranian targets after Tehran’s attacks on shipping and Iran retaliating by striking US bases in Jordan, Kuwait, Bahrain and Iraq’s Kurdistan region; Iran also accused the US of a “war crime” after a wedding strike, while Trump said the campaign “won’t last long” and warned more strikes could come “any time we want.” Hormuz Shockwaves: As fighting flared, oil prices jumped and Strait of Hormuz traffic reportedly cratered, while Trump floated renaming it the “Trump Strait,” then downplayed it as a throwaway idea. Iraq Accountability at Home: In Iraq, the Interior Ministry dismissed 38 officers and 180 personnel over corruption during the government’s first 100 days, as the Dawn Crackdown continues. Tishreen Debate Reignites: A lawyer filed a complaint to summon Hadi al-Ameri over remarks on the 2019 Tishreen protests, reviving legal and political pressure around how “resistance” is framed in Iraq’s post-2019 crisis narrative. Regional Diplomacy Signals: Pakistan urged dialogue and said it remains optimistic talks can resume as the Strait of Hormuz remains a central flashpoint. Baghdad Culture: The 27th Baghdad International Book Fair opened with 600+ publishers, with Oman as guest of honor.

US-Iran Escalation: The US and Iran traded fresh strikes after a monthlong lull, with Washington hitting Iranian military targets and Tehran retaliating by attacking US interests across the Gulf, including claims of strikes on bases in Iraq’s Kurdistan. Kurdistan Under Pressure: Reports say Iran targeted positions linked to the KDPI dissident group near Erbil with drones, while IRGC-linked media also claimed attacks on US-related sites in the region. Wedding Strike Fallout: Iran accused the US of bombing a wedding in Sirik, killing at least four and wounding dozens, as the US denied targeting civilians and CENTCOM said it struck military targets. Baghdad’s Disarmament Deadline: As Iraq approaches the Sept. 30 deadline for ending foreign troop presence, Iraqi factions linked to Iran signaled new flexibility on weapons handover—on the condition that decisions are made independently of outside pressure, especially from the US. INSS Anti-Counterfeit Drive: Iraq’s National Security Service in Najaf arrested a suspect over counterfeit currency networks, seizing $100,000, Iraqi currency, major contract documents, bank cards, and machines used for money sorting. KRG Migration Returns: Kurdistan authorities arranged the return of 33 residents from Libya after months of detention and threats, warning against irregular migration routes. Legal Action Over Tishreen: A Wasit lawyer filed a complaint seeking prosecution of Hadi al-Amiri over remarks tied to the 2019 Tishreen protests.

Kurdistan-UAE Diplomacy: KRG PM Masrour Barzani met UAE President Mohamed bin Zayed in Abu Dhabi, condemning recent UAE attacks and discussing ways to deepen Erbil-Abu Dhabi cooperation on regional security. Anti-Corruption Enforcement: Iraqi security forces raided the home of Baghdad Chamber of Commerce chief Firas al-Hamdani, amid a wider Integrity Commission-linked push against corruption and misuse of public funds. Food Security & Regulation: The Iraqi Cabinet banned agricultural imports until the end of the domestic production season and approved a draft law to establish a Food and Drug Authority, alongside steps tied to housing plots and water/sewage project restructuring. Cost-of-Living Pressure: A new report highlights how Iraqi households—especially salaried workers and retirees—are squeezed as wages barely cover rent, utilities, food, transport, and private generator costs, with gasoline and generator rates straining minimum-wage households. Religious Rights in Courts: Iraq’s highest appeals court upheld a ruling allowing a woman misclassified as Muslim to change her official status to Christian, a decision backed as precedent for religious minorities. ISIS Trial Pipeline: Iraq says interrogations of 5,700 ISIS-linked detainees transferred from Syria are complete, with referrals to trial expected soon, including cases involving foreign suspects.

US-Iraq Security Ties: The U.S. State Department approved a possible $800M Foreign Military Sale to Iraq for Bell 407M and Bell 412EPX helicopters, plus weapons, sensors, training, and logistics—aimed at boosting Iraq’s rotary-wing transport, reconnaissance, and air-to-surface targeting as coalition drawdown nears. ISIS Detention & Justice: Iraq’s Supreme Judicial Council says it has completed questioning 5,704 ISIS suspects transferred from northeastern Syria, spanning 67 nationalities; cases will move to trial courts in batches, with hundreds of Syrians expected for release over insufficient evidence. Local Governance: Dhi Qar’s provincial council accepted Governor Haitham Al-Hamdani’s resignation and began selecting a successor, with candidates linked to Ammar Al-Hakim’s National Wisdom Movement. Anti-Corruption Oversight: Iraq’s Federal Integrity Commission launched an investigation into state bank contracts and loan approvals, focusing on exceptional grants and special permissions to determine any legal or administrative responsibility. Energy Infrastructure: Prime Minister Ali al-Zaidi ordered fast-tracked work on a $4.6B cross-country pipeline network (Basra-Haditha and onward routes) to expand export options and reduce reliance on the Strait of Hormuz. Regional Security & Tensions: In Diyala, a former PMF commander was released on bail after detention over alleged incitement tied to Khanaqin sectarian/ethnic tensions. Civilian Power Supply Pressure: Private generator owners threatened to halt electricity provision unless fuel access, taxes, and operating support are implemented, after a directive to supply subsidized fuel during September. US Army Leadership Shakeup: Reports say U.S. Army Secretary Dan Driscoll submitted his resignation amid tensions with Defense Secretary Pete Hegseth, adding to leadership instability during the Iran war.

Iraq Cabinet Crunch: Prime Minister Ali Al-Zaidi says Iraq’s political blocs will finalize talks on the remaining cabinet posts this week, then send nominees to parliament next week for confidence votes, with disputes still lingering over key ministries like Interior and Defense. Anti-Militia Accountability: In a rare prosecution tied to Iran-backed armed groups, an Iraqi court sentenced Amir Rahim Jabbar Lazim to 15 years for kidnapping American journalist Shelly Kittleson in Baghdad under the Anti-Terrorism Law. Oil Sanctions Watch: Iraq’s SOMO denied any links to the sanctioned tanker BINARY STAR, saying it only deals with compliant vessels and uses monitoring to verify routes even when AIS data is hidden. PM’s Diplomacy Push: Al-Zaidi is set to visit France and Germany in early September to expand partnerships and strengthen Iraq’s foreign relations.

Budget & Sovereignty: Iraq’s cabinet will vote on the 2027 federal budget in September, with the deficit capped at 3%, while the government warns the next budget will be among the hardest in modern times amid the liquidity squeeze and Hormuz-linked export risks. Anti-Corruption Push: Prime Minister Ali Al-Zaidi has activated a law to reward corruption whistleblowers, after a campaign that recovered over $1.3bn and triggered tighter border monitoring and asset seizures. US Coalition Exit & Arms Regulation: Baghdad says the US-led coalition withdrawal is progressing smoothly toward a full end by Sept. 30, alongside efforts to restrict weapons to state forces and require armed groups to hand over arms by the same deadline. Kurdistan Governance & Trade: In Erbil, customs and ASYCUDA implementation disputes with Baghdad remain unresolved, while KRG PM Masrour Barzani met a US-led coalition delegation on security reforms and coordination in disputed areas. Local Politics in Diyala: Khanaqin protests were paused pending talks in Baghdad, with Kurdish parties demanding detainees be released and arrest warrants canceled over constitutional rights disputes. Integrity Commission Hits Fraud: Iraq blocked a state property sale in Anbar after violations in advertising and pricing, saving billions of dinars. Economy & Debt: Iraq’s domestic public debt rose to 106.072tn IQD by end-June, reflecting spending outpacing revenue. Agriculture & Imports: Potato import data—nearly 90,000 tons worth $52.4m in 2025—highlights Iraq’s production and storage gap and the need to boost competitiveness, not just restrict imports.

Iran–US Escalation: The US resumed strikes on Iran after observing preparations to mine the Strait of Hormuz, hitting two IRGC missile launchers on Larak Island; Iran’s IRGC warned of retaliation as explosions were reported near the site. Disarmament & Coalition Exit: With the Sept. 30 deadline for bringing weapons under state control and ending the US-led coalition mission, Iran-backed Iraqi militias are escalating demands, including withdrawal of foreign forces and broader political-security conditions. Anti-Corruption Crackdown: Iraq’s integrity bodies continued sentencing in “Operation Dawn,” including a former oil ministry distribution deputy minister to seven years for illicit enrichment, while the Central Bank froze assets of senior officials and politicians. PMF Law Pressure: In Basra, a grassroots movement plans a sit-in demanding parliament pass PMF legislation and secure legal rights for PMF personnel after US-opposed provisions were reportedly removed. Industrial Push: Prime Minister Ali al-Zaidi ordered land allocations for industrial projects across provinces and moved to restrict exports of some metal raw materials to boost local manufacturing. Governance & Rights: In Anbar, officials renewed calls to resolve enforced disappearances and speed DNA testing for mass-grave cases; in Baghdad, a corruption conviction cost an MP their seat under IHEC rules. Kurdistan Returns: The KRG begins staged registration for displaced families wishing to return to Sinjar, with returns described as voluntary and supported via IOM aid.

EU Security Mission: The EU will start a two-year civilian security advisory mission in Iraq in November, focused on legal reforms and police training, while clarifying it won’t replace the departing Global Coalition’s logistics. Disarmament Deadline: PSM leader Muqtada al-Sadr backs PM Ali al-Zaidi’s push to bring all weapons under state control ahead of the Sept. 30 deadline. US-Iraq Partnership: Washington says it “strongly supports” al-Zaidi’s vision, linking cooperation to preventing attacks from Iraqi territory and a future free-from-terrorism partnership. Kurdistan Oil Restart: Iraqi Kurdistan resumed oil production at most fields after drone attacks, reaching up to 230,000 bpd, with Sarsang still offline due to damage. Anti-Corruption Coordination: KRI handed Baghdad dozens of corruption suspects and assets, and Baghdad/Erbil agreed to unify pursuit of corruption cases across administrative lines. Baghdad Drone Crackdown: Authorities will deploy drones to detect illegal land encroachments after deadly clashes in Al-Dora that killed a senior municipal security official. Banking Reform Push: The prime minister’s economic adviser warns Iraq’s banking sector is at a “critical crossroads,” calling for stronger oversight, anti-money laundering standards, and depositor protections. 5G Rollout: Iraq plans a simultaneous nationwide 5G rollout with the Kurdistan Region, aiming to unify protocols and spectrum and coordinate international fiber links.

Anti-Corruption Push: Iraq’s Prime Minister Ali al-Zaidi ordered the Federal Integrity Commission to activate whistleblower rewards, tighten border-crossing monitoring, and publicly expose corruption suspects, with audits underway across ministries. Armed Factions & Disarmament: Kataib Sayyid al-Shuhada said any move toward weapons regulation depends on 10 conditions, including a complete US withdrawal and stronger federal control, as Iraq faces a 30 September deadline. Sunni Cabinet Formation: Iraq’s Sunni National Political Council plans to pick candidates for Sunni ministries and advance PM Al-Zaidi’s cabinet completion, with negotiations among Sunni blocs ongoing. Jurf Al-Sakhar Standoff: Khamis Al-Khanjar rejected Kataib Hezbollah’s invitation to visit Jurf Al-Sakhar, demanding displaced residents be allowed to return and calling for compensation and clarity on missing people. Kurdistan Funding Uncertainty: Interior Minister Reber Ahmed said there is no final decision on reported US cuts to Peshmerga aid, amid concerns over regional stability. Security Update: Iraqi forces arrested a multi-charge fugitive in Basra linked to murder, extortion, and land seizures. Investment & Reconstruction: Erbil’s construction exhibition drew 450+ exhibitors seeking partnerships in Iraq, highlighting modern building tech and sustainable energy.

Central Bank Crackdown: Iraq’s Central Bank ordered banks to freeze assets of 12 MPs and former advisers tied to the “Green Dawn” anti-corruption drive, following court orders after June detentions. Anti-Corruption Push: Separate Integrity Commission reporting says officials linked to a Saladin real estate money-laundering case face seizures over dozens of properties, including claims of bribes and concealed ownership. Kurdistan Politics: In Erbil, the KDP says it will meet the PUK next week to break the deadlock over forming the KRG’s tenth cabinet, with the party also signaling it prefers reactivating parliament over early elections. US-Iraq Security: A senior US official tells Shafaq News the coalition’s military mission in Iraq will be reduced on Sept. 30, shifting toward a bilateral security partnership. Baghdad Violence: Security forces arrested the main suspect in a deadly Dora shooting during an operation against illegal housing, after earlier arrests of other suspects. Housing Crisis: Iraq’s housing shortage is blamed on corruption, hoarding, and influential property control, with officials citing a massive gap between people and homes. Energy Dispute: Private generator owners warn of a shutdown in early September over fuel and support shortfalls amid long grid outages.

U.S.-Iran pressure on Iraq’s financial lifelines: Iraq’s foreign ministry warned that new U.S. anti-Iran sanctions will hurt trade and financial cooperation, after Washington signaled it will target countries and institutions that keep Iran connected to the dollar system. Visa and watchlist fallout for Iraqi officials: The U.S. State Department revoked the visa of former Iraqi finance minister Taif Sami Mohammed Al Shakarchi after she was reportedly placed on the FBI terror watchlist; Sami denied the claims and said she would pursue legal action. Anti-corruption crackdown at the Central Bank: Iraq’s Central Bank ordered precautionary asset freezes for 12 political figures tied to corruption cases, directing banks and ministries to implement the measures. Baghdad housing crisis turns deadly: A clash during removal of unauthorized homes in Al-Dora left a brigadier general and a security officer dead, spotlighting Iraq’s long-running informal settlement problem affecting millions. Regional security shift: Iraq welcomed an agreement to integrate Syria’s SDF into Syrian state institutions, while Hezbollah rejected a Lebanese framework deal with Israel and insisted on UN Security Council 1701 terms.

Iraq Anti-Corruption Push: Iraq’s National Security Service says it arrested 61 people in Al-Muthanna over a land-record forgery network tied to more than 90 forged transactions and about $1.5 million in losses to public funds, with suspects including government employees, lawyers, and real-estate office owners. Media Regulation Under Strain: Iraq’s Communications and Media Commission faces a legitimacy crisis as its telecom work continues, but its media oversight and access-to-information role is criticized amid political interference and board paralysis. Militias, Security, and State Control: Iraq’s debate over militia disarmament and weapons control continues as Baghdad weighs how to meet deadlines without triggering confrontation, with lawmakers and officials pushing for clearer state authority. Regional Pressure From Iran War: As the U.S.-Israel war against Iran hits six months, Washington shifts toward broader sanctions pressure, while Gulf states accelerate port and pipeline investments to reduce reliance on the Strait of Hormuz—an issue that directly affects Iraq’s oil routes and regional stability. Sports Spotlight: More than 700 athletes kicked off Iraq’s 2026 Grand Bodybuilding and Fitness Championship in Kirkuk, running through Aug. 29.

Iraq-US Coalition Exit: Iraq’s government says the international coalition mission will end as scheduled on Sept. 30, while Baghdad presses armed factions to hand weapons to the state and warns against any sectarian escalation. Weapons & Sovereignty: Shiite Coordination Framework leaders reject cabinet resignations/dismissals before remaining posts are filled, as the disarmament deadline nears and PM Ali al-Zaidi faces pressure over how to manage Iran-backed factions. Anti-Corruption Drive: Al-Zaidi tells parliament inflated project costs are a key corruption driver, pushing audits before and after contracts and backing an Internal Oversight Authority. Human Trafficking Crackdown: Iraqi forces in Najaf dismantled an organ-trafficking ring tied to Erbil coordinators and Iran, arresting suspects and people negotiating illegal organ sales. Women’s Security: A NATO-linked report urges stronger focus on women’s security in Iraq, citing violence against rights defenders and concerns around personal status law changes. Regional Diplomacy: Iraq’s PM Al-Zaidi meets Egypt’s envoy/intelligence chief in Baghdad to boost coordination and information-sharing; Saudi and Iraqi security officials also discuss border control and intelligence cooperation. Oil & Shipping Pressure: With Hormuz risks ongoing, crude flows are reportedly creeping higher, while Iraq seeks export flexibility as regional tensions continue.

Iraq Anti-Corruption Drive: Iraq’s National Security Service says it recovered over 93 billion dinars for the state treasury in the first half of 2026, seized $14m plus 12bn dinars, and arrested 40 suspects tied to a banned Baath-linked group, while also disrupting cyberattacks and a land-record manipulation network in Al-Muthanna. Sovereignty and Coalition Exit: Iraqi officials say the US-led Global Coalition withdrawal is accelerating and will be completed by Sept. 30, framing the handover as “Iraqi Sovereignty Day” and stressing plans to bring all weapons under state control. Kurdistan Security and Fuel Pressure: A suspected drone strike hit Soran in Erbil province with no casualties, and a KRG delegation is in Baghdad to discuss the ongoing fuel crisis with a temporary parliamentary committee. Iraq Oil Route Shift: Iraq’s SOMO is allowing ship-to-ship transfers near Oman under new tender terms, giving crude buyers a way to avoid the Strait of Hormuz for the first time since the war began. Regional Diplomacy: Iran’s president urged Muslim countries to block their territory from being used for attacks on other Muslim nations, as Qatar’s PM visits Tehran to push de-escalation and revive stalled talks.

Iraq’s Cabinet Share Fight: The Al-Azm Alliance rejected a proposal to cut its next cabinet share from two ministries to one after the arrest of its leader, Muthanna al-Samarrai, over alleged corruption, insisting it is entitled to Planning and Culture. Health & Industry: Iraq is trying to bring back major drugmakers, including GSK, after talks in the UAE, aiming to expand cancer treatments and vaccines and reduce import gaps. Telecom Court Ruling: An Iraqi court upheld the regulator CMC’s decision to suspend Korek Telecom operations, overturning an injunction and citing legal procedures and public interest. Energy Deals: Iraq and Shell discussed boosting gas production in Basra, expanding use of associated gas, and cutting flaring while improving fuel supply for power and industry. Kurdistan Developments: Erbil began construction of the Grand Barzani Mosque, while KRI President Nechirvan Barzani said Syria’s SDF integration into state institutions could mark a new phase for rights and stability. Regional Security: Germany ended its military advisory mission in Iraq’s Kurdistan region as the Sept. 30 coalition pullout deadline approaches. War Fallout: NBC reported Iran’s attacks damaged US intelligence posts and surveillance hardware across the region, including sites in Iraq, with repair costs running into billions. Strait of Hormuz Tensions: Iran warned military vessels could be barred from Hormuz under a proposed Oman framework, while broader shipping and mine-clearing talks continue.

Iraq–South Korea Defense Finance: Iraq’s Finance Minister Falih al-Sari met South Korea’s ambassador in Erbil to finalize funding mechanisms for a contracted air defense missile system, with Iraq’s army chief of staff present, as Baghdad pushes to secure its airspace amid regional threats. Coalition Transition & Rule of Law: Iraq’s Supreme Judicial Council chief Judge Faiq Zaidan met the U.S. chargé d’affaires Joshua Harris to discuss legal preparations for the coalition mission’s scheduled end on Sept. 30, including prosecution of unauthorized weapons and enforcing rule of law nationwide. Kurdistan Security & German Role: Germany’s military advisers concluded their mission in the Kurdistan Region after years supporting Peshmerga efforts against ISIS, with Erbil thanking Berlin as the broader coalition drawdown continues. Baghdad Waste-to-Resource Deal: Iraq’s GCCE signed a master agreement with Germany’s Sutco® to build a modern waste management and resource recovery facility in Baghdad, targeting fertilizer and renewable aviation fuel outputs. Nasiriyah Airport Progress: Construction of Nasiriyah International Airport reached 68%, with handover expected in early 2027 after equipment and contract addendum steps. Sectarian Video Case: Iraq’s Sunni Endowment filed a criminal complaint over an allegedly sectarian video by Shiite reciter Faqid al-Mousawi, while a fact-checking platform says the footage is old. Iraq Banking Review: Iraq is reviewing state banks and financial institutions over alleged public-fund misuse, liquidity issues, and gaps between reported figures and on-the-ground performance.