AGP Executive Report

Anti-Corruption Crackdown: Iraq’s Central Anti-Corruption Criminal Court sentenced MPs Alia Nassif and Ashwaq al-Jubouri to multi-year prison terms and ordered restitution tied to illicit enrichment, as the Dawn Crackdown continues to target high-profile figures. Weapons Control & Sovereignty: Nouri al-Maliki said a timetable for bringing weapons under state control will be unveiled Sept. 30, aligning with Iraq’s push to end armed activity outside official institutions as the US-led mission winds down. Court Sentences: A second MP, Ashwaq Salem Hassan, received a seven-year term for illicit enrichment, while courts also issued death sentences in a Baghdad killing case involving municipal security officials. Financial Oversight: Regulators are investigating insurance payments tied to e-loans at state banks, probing whether public funds were mismanaged. Dollar & Appointment Corruption: Iraq’s intelligence dismantled an illegal dollar-trading network in Baghdad and probed suspected corruption in Al-Diwaniyah appointments. Iraq-US Transition: The US says it remains on track to complete troop withdrawal by Sept. 30, while Iraq continues planning for sovereignty-focused milestones. Regional Diplomacy: Prime Minister Ali al-Zaidi is coordinating positions with regional and international partners at the UN General Assembly to bolster stability. Iran Aviation Sanctions Impact: US sanctions on Iran’s aviation sector are taking effect, with Baghdad and Muscat reportedly halting Iranian flights and talks underway to redirect routes. Economy & Trade: Iraq reported a $10.82bn trade surplus in Q1 2026, driven mainly by crude exports. Sovereignty Day: Iraq ordered ministries to prepare public events marking Sovereignty Day on Oct. 1.

UN Diplomacy: Iraqi PM Ali al-Zaidi met US and regional leaders in New York on the sidelines of the 81st UN General Assembly, including a session convened by President Trump and separate talks with Secretary of State Marco Rubio, with both sides stressing Iraq’s push to keep weapons under state control and prevent attacks from Iraqi territory. Militia Disarmament Deadline: Iraq reiterated plans to disarm Iran-backed factions by June 2027, with an initial 90-day phase before handovers—an approach that keeps the US-Iraq security transition on track as Washington prepares to reduce its footprint by Sept. 30. Interior Ministry Oversight: Iraq’s Interior Ministry asked parliament to review minority recruitment after an MP accused it of excluding ethnic and religious minorities, saying hiring relies on electronic systems, quotas, and legal standards. Heritage Register: Iraq identified about 626,000 heritage buildings nationwide, with the Ministry of Culture, Tourism and Antiquities classifying sites into categories A, B and C for preservation. Energy Costs at Home: A report highlighted how unreliable electricity forces households to pay for both grid power and private generators, hitting summer budgets hard. Regional Security Context: US-Iran tensions dominated UN talks, with Trump warning of “annihilation” while also signaling momentum toward a deal—raising stakes for Iraq’s security and energy environment.

Militia Disarmament Push: Iraq says it will take control of nearly 6 million weapons from armed groups, treating the Sept. 30 deadline as the start of a regulatory process and aiming to finish disarmament by June 2027, amid US pressure and resistance from Iran-backed factions. UNGA Diplomacy: Iraq’s PM Ali al-Zaidi heads to New York to press the case on reining in Iran-backed militias as the UN General Assembly becomes a stage for rising regional tensions. Peshmerga Unification: Iraq’s army chief hailed the unification of Peshmerga forces as a milestone for national security, with Defense Ministry coordination promised. Iran Airline Sanctions Fallout: The US warns Iranian airlines could be shut down globally from Sept. 23, while Iran and Iraq’s transport authorities give conflicting signals on whether flights to Iraq will be suspended. Kurdistan Protest Crackdown: Security forces dispersed an electricity-price protest in Al-Sulaymaniyah, arresting participants and allegedly using force. Oil-Route Pressure: Iraq’s oil exports and the Basra hub face disruption as war risks keep shipping bottlenecks tight, deepening economic strain. G7 on Yemen: G7 foreign ministers urged Iran to stop military support to the Houthis and called for an end to attacks threatening maritime routes.

Disarmament Plan: Iraq’s PM Ali al-Zaidi says a phased weapons-control push for Iran-backed militias will start with a 90-day halt on attacks and end with full disarmament by June 30, 2027, with holdouts to be treated as outlaws. Government Formation: A report says Zaidi is still holding back on completing his cabinet as Washington and Iran-aligned Shiite backers squeeze his options, leaving key ministries vacant. Security & Courts: Baghdad has opened the trial of six French ISIS suspects, who could face the death penalty; defense lawyers want repatriation to France. Kurdistan Forces: The KRG says Peshmerga forces are now unified under a single umbrella ministry, a major step after years of division. Fuel Crisis: Iraq’s parliament voted recommendations to tackle worsening fuel shortages, including reviewing white-oil supplies to Kurdistan. Economy & Pay: Liquidity problems are delaying September salary funding to ministries, with officials citing incomplete procedures and lower revenues. Trade & Telecoms: The Trade Ministry moves to tighten import controls and expand exports, while the CMC opens consultation on licensing non-terrestrial telecom services. Regional Pressure: An Iraqi MP warns Iraq is becoming Iran’s last route for smuggled dollars as US sanctions tighten ahead of the Sept. 30 coalition withdrawal.

Security Transition: Iraq’s Interior Ministry is moving to take over internal security across provinces, with Saladin expected to be among the next transfers, as Baghdad aims to finish handing city security duties nationwide by 2026. Anti-ISIS Accountability: In Duhok, authorities have begun re-exhuming about 60 Sinjar ISIS victims for DNA testing and family identification, after mass graves were previously reopened only partially. Kurdistan Defense: Erbil officially announced full unification of Peshmerga forces under the Kurdistan Ministry of Peshmerga Affairs, with leaders stressing constitutional coordination with the Iraqi Army and a push to strengthen capabilities. Oil & Air Defense After Sept. 30: KRI officials say Baghdad will carry major responsibility after Sept. 30 for defending Iraq—including Kurdistan’s oil facilities—especially for air defense, as the coalition mission ends. Corruption Case: A Baghdad court recovered 51 billion dinars for Rafidain Bank in a corruption case, with legal action continuing against those responsible. Water Pollution Crackdown: Iraq’s PM ordered ministries to set a clear timeframe to curb pollution in the Tigris and Euphrates, after warnings that aquatic life is unsafe for consumption. Banking & Economy: Central Bank data shows Iraqi bank deposits fell 3.7% in July, while cash credit also dipped slightly. Health Sector: The Health Ministry announced Health Expo Iraq for Oct. 28–31 in Baghdad.

UN Diplomacy: Iraq’s Coordination Framework urged PM Ali al-Zaidi to use his UN General Assembly trip to stress sovereignty, reject interference, and push reconstruction and anti-corruption priorities. Fuel Crisis: The Sadiqoon bloc says it will question Oil Minister Bassem al-Abadi over a near-month fuel shortage blamed for factory disruptions and long queues, and it also flagged concerns about proposed fuel price changes. Sovereignty & US Withdrawal: Muqtada al-Sadr warned the US must stick to the Sept. 30 withdrawal deadline and cautioned against any post-withdrawal foreign interference, while the CF discussed a “Sovereignty Law” covering weapons handover, a PMF drone unit, and managing Turkish forces north of the 36th parallel. Border Trade: Iraq and Syria moved to ease truck traffic and restart passenger services at Al-Waleed-Tanf after years of closure, aiming to reduce delays for drivers and expand cross-border capacity. Kurdistan Security: KRI announced a Monday ceremony to unify Peshmerga forces under President Nechirvan Barzani’s supervision. Justice & Rights: Iran transferred 159 nationals from Iraqi prisons to serve remaining sentences at home under a prisoner-transfer deal. Local Accountability: A Najaf court case over wild-boar meat sold as livestock meat has shaken consumer trust, with fraud and sale of unfit meat central to the ruling.

ISIS Trials in Iraq: An Iraqi court in Baghdad opened the trial of six French nationals accused of Islamic State membership, with prosecutors warning of possible death sentences and the hearing adjourned to Oct. 5 for defense review. Kurdistan Politics: KRG PM Masrour Barzani urged lawmakers to end parliament’s boycott and return to sessions to unblock formation of the next regional government amid quorum problems. KRG-France Ties: President Nechirvan Barzani met France’s new consul general, discussing expanded cooperation and regional developments. Finance & Sanctions Pressure: Shafaq News reports some Iraqi electronic payment cards stopped working abroad after Sept. 19, citing higher fees, exchange-rate shifts, and possible compliance steps tied to international payment networks and sanctions concerns. Energy for Households: Rasheed Bank launched up to 30 million dinar solar loans for up to seven years at 3% interest, aiming to expand clean-energy use. Airspace Sovereignty: Iraq lifted decade-long restrictions on western airspace, returning full control to civilian authorities as coalition withdrawal continues. Yazidi Abduction Update: Hussein Qaidy said 40% of Yazidi abductees remain missing, marking the Sinjar massacre anniversary. Regional Security Shockwaves: Multiple reports tied US travel and security alerts to rapid escalation risks involving Iran-backed Houthis, with Iraq included among countries issuing warnings.

US-Iran Tensions: The US issued new travel and security alerts across the Middle East as Iran says it has delivered seven conditions for talks to end the war, warning of rapid escalation and possible flight cancellations/airspace closures. Saudi-Houthi Pressure: Houthis claimed attacks on “sensitive sites” in Riyadh and Aramco facilities in Yanbu, while Saudi issued rare air-raid alerts as the Red Sea and regional shipping risks keep rising. Iraq’s Domestic Priorities: Prime Minister Ali Al-Zaidi ordered Finance funding for medicines and supplies for children with diabetes, underscoring continued pressure on Iraq’s public health system. Sovereignty Milestone: Iraq says the US has begun withdrawing remaining troops from Iraqi Kurdistan, with Sept. 30 set as the “final and irreversible” end of the coalition mission. Economy & Jobs: A report highlights Iraq’s job drought for graduates, with most public spending tied to salaries and limited room to absorb hundreds of thousands of new entrants. Kurdistan Governance: KDP and PUK efforts to form a new Kurdistan Region government continue, as Barzani seeks a larger KRI budget share for 2027. Regional Energy Shock: Analysis and reporting link attacks across Iraq/Yemen/Saudi infrastructure to oil-price spikes and renewed pressure on global chokepoints like Hormuz and Bab al-Mandab.

US-Iran War Costs: The US military estimate for the Iran war has climbed to $43.6 billion as of Sept. 3, with weapons spending rising sharply, adding pressure ahead of November midterms. US Troop Death Tally: Separate reporting says the Pentagon’s public count may be missing deaths, with internal records cited putting fatalities at 22–23. Iraq-US Sovereignty & Sanctions: Iraqi PM Ali al-Zaidi is set to ask Trump to hold off sanctions, tied to the Sept. 30 deadline for disarming factions as the US coalition mission ends. Kurdistan Budget Push: President Nechirvan Barzani urges Baghdad to coordinate directly to secure the KRI’s full 2027 budget share, calling current talks “insufficient.” KRI Education Expansion: The KRG says 236 new schools and kindergartens opened, as 1.75 million students prepare to return. Security & Crime: Iraqi naval forces thwarted a piracy attempt on an oil tanker near Basra and arrested 11 suspects. Economy & Currency: The US dollar crossed 160,000 IQD in parallel markets amid liquidity fears and geopolitical pressure. Regional Trade Risk: Analysts warn the Hormuz and Bab al-Mandeb chokepoints are both under strain, threatening global shipping and energy flows. Kyrgyz/ISIS Prisoners: Families in Kyrgyzstan renew calls for the return of relatives held after ISIS-linked detentions, including women from Iraqi prisons.

U.S.-Iran Tensions: The Soufan Center warns that even as Washington and Tehran signal willingness to de-escalate, core demands remain unchanged and clashes from the Strait of Hormuz to Yemen could still spiral into major combat. Regional Security & Oil Routes: Saudi Arabia’s East-West Pipeline—built to bypass Hormuz—has been hit after Riyadh blamed a drone strike tied to Iran-aligned militias in Iraq, forcing shutdowns and rattling global supply. INTERPOL Counter-Terror Work: INTERPOL says an AI-powered operation, “Operation Shams II,” identified 126 suspected foreign terrorist fighters from 108,000 facial images, with Iraq among participating countries. Iraq Environment Watch: Najaf and Al-Muthanna’s desert habitats face rising pressure from drought, water shortages, hunting, and vehicle intrusion, threatening biodiversity. Iraq-Related Accountability: Syria’s security forces in Erbil report arrests of Assad-era air force officers accused of strikes on populated areas, underscoring ongoing war-crimes investigations. Local Governance: Iraq reopens restricted western airspace for civilian flights, a sign of shifting control as authorities manage security and access.

Airspace Restoration: Iraq’s Ministry of Transport says it has fully lifted long-running military reservations over parts of Iraqi airspace, handing the zones back for civilian use and moving to update aeronautical manuals so international airlines can plan new routes. Integrity Crackdown: Iraq’s Commission of Integrity says a man impersonating an integrity investigator in Diyala extorted government offices, was arrested in an operation, and ordered detained under the Anti-Corruption Law. Market & Religious Oversight: In Najaf, Muqtada al-Sadr warned local authorities after a butcher was caught selling wild-boar meat as pork-free “ground meat,” urging tighter market oversight; a related case has already led to a 10-year prison sentence. Regional Security & Diplomacy: Iraq’s ties with the US are shifting toward investment as Prime Minister Ali al-Zaidi prepares to meet Trump at the UN General Assembly, while foreign archaeological missions say security concerns have kept them out of Iraq. Counter-Terror Tech: INTERPOL says an AI-assisted operation identified 126 foreign terrorist fighters, with Baghdad-based officers contributing images and data.

Iraq-U.S. Pivot: Iraqi Prime Minister Ali al-Zaidi is set to travel to the United States next week for UN General Assembly events and direct talks with President Donald Trump, with Baghdad framing Sept. 30 as a shift from security-focused engagement to longer-term economic partnership. Kurdistan Under Pressure: KRG PM Masrour Barzani said the region is facing an “intensive campaign of terrorism” but insists Kurdistan will “defeat” threats through unity and closer cooperation with Baghdad, as attacks continue targeting infrastructure and diplomatic sites. Basra & Borders: Iraq welcomed Western curbs on Israeli settlement goods and also moved to manage regional fallout from the Saudi pipeline crisis by probing drone launch sites and tightening border security. Regional Security Talks: Iran’s top security official Mohsen Rezai told Iraq’s Kurdistan leader Bafel Talabani that Tehran “does not trust America” and demanded practical steps, while Gulf states push new security frameworks amid Red Sea and Hormuz risks. Energy Shockwatch: Analysts warn damage to Saudi oil routes and wider Iran-war disruptions could drive sharp gasoline and diesel price spikes, hitting Iraq’s neighbors and the region’s political economy.

Saudi-Iraq Pipeline Fallout: Iraq’s PM Ali al-Zaidi moved fast after drones hit Saudi Arabia’s East-West pipeline, ordering security officer removals in Maysan and closing three Iraq-Iran border crossings while an investigation tracks the launch site and suspects. Budget Pressure: Iraq is drafting the 2027 budget amid an estimated $45.8B deficit risk and uncertainty over oil prices and export volumes, with the draft still awaiting cabinet approval. Fuel Subsidy Review: The Cabinet is reviewing subsidy cuts after MPs warned the changes worsened gasoline and kerosene shortages, with possible revisions for specific sectors. Kurdistan vs Baghdad: At the Slemani Summit, President Nizar Amedi urged diversification and anti-corruption action, while KRG finance minister Awat Sheikh Janab Nouri criticized Baghdad’s budget-share formula and deductions that reduce Kurdistan’s share. Sinjar Returns: Iraq’s Migration Ministry says more than 30,000 displaced people have returned to Shengal, with camp closures planned without coercion. Anti-Corruption: An Al-Diwaniyah antiquities employee was arrested over alleged extortion tied to foreign excavation missions. Diplomatic Push: Iraq’s new US ambassador, Krikor Der-Hagopian, presented credentials and said priorities include deepening Iraq-US political, economic, investment and security cooperation.

Iraq-Saudi Security Fallout: Iraq confirmed that drones targeting Saudi Arabia’s East-West oil pipeline were launched from Iraqi territory, then moved to sack a Maysan commander and investigate the attack, while also temporarily closing Iran-border crossings as part of the wider probe. Regional Energy Pressure: Saudi Arabia suspended part of oil supplies to Europe after the pipeline strike, as Houthis escalate attacks around the Red Sea and Bab el-Mandeb, keeping crude above $100 and raising fears of longer-term supply shocks. Kurdistan Political Deadlock: A new report highlights how Iraqi Kurdistan’s delayed 2024 elections still haven’t produced a functioning government, with KRG institutions stuck in legal limbo as Iran-linked attacks spill into the region. Diplomacy and Counterterrorism: Türkiye and Iran’s interior ministers met in Ankara to discuss dismantling PKK affiliates and border security, including PJAK, while stressing regional cooperation. US-Iran War Politics: In Washington, the US House voted again to curb Trump’s Iran war powers, though the measure is expected to face a veto. Iraqi Domestic Governance: Iraq continues investigating attacks on Saudi Arabia from Iraqi territory and is also pursuing broader security steps, including efforts tied to militia disarmament and online monitoring.

Iraqi Politics & Law: Iraq’s anti-corruption drive landed another blow as an Iraqi court sentenced MP Bahaa Al-Din Noor Mohammed Hussein Al-Nouri to seven years for illicit enrichment, ordering repayment and fines totaling over $30M. Human Security: Iraq said about 1,200 people remain in Syria after Al-Hol camp’s closure, with returns requiring coordination and new transfer arrangements. Kurdistan Budget Fight: The KRG rejected a 12.67% share of Iraq’s 2027 federal budget, demanding 14% tied to the latest census and pushing for salary protections. Hate Speech Gap: A rights group warned Iraq still lacks a clear hate-speech law, leaving minorities exposed as social media rhetoric rises. Regional Fallout: The US reiterated support for PM Ali al-Zaidi’s push to enforce Iraqi sovereignty and prevent attacks from Iraqi territory, while the US House again voted to end the Iran war—setting up another likely veto clash. Public Safety: Iraq’s narcotics authorities reported nearly a tonne of drugs destroyed, alongside large seizures and court sentences.

Iraq-Saudi Pipeline Fallout: Iraq-linked drone attack claims around Saudi Arabia’s East-West pipeline are driving a wider security scramble, with Baghdad investigating an alleged small armed network outside established Iran-backed faction command structures and Saudi warning of disruptions as repairs proceed. Regional Energy Pressure: Saudi issued broad security alerts including Mecca and Jeddah after Houthi-linked attacks, while oil prices climbed on fears of prolonged pipeline downtime and Red Sea shipping risks. Iraq-Germany Economic Push: Prime Minister Ali al-Zaidi used a Berlin trip to pitch investment and oil export plans, meeting German President Steinmeier and signing a Phase IV power cooperation framework with Siemens Energy. Iraq-France Deals: In Paris, al-Zaidi witnessed six MoUs with France spanning defense, energy, aviation, and youth/innovation cooperation. Corruption Crackdown in Dhi Qar: Nasiriyah municipality director Mohammed Jabbar Dhaif faces arrest warrants and possible removal amid a widening land and public-finance probe. US-Iran War Cost Hits Iraq’s Orbit: New US budget reporting pegs the Iran war’s cost at $38bn so far, projected to rise $3bn monthly—fueling inflation and intensifying pressure on regional routes Iraq depends on. Business Diplomacy: The Iraq Britain Business Council wrapped a Baghdad trade mission with meetings across ministries and regulators, aiming to expand energy, transport, banking, and legal cooperation.