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Iraq's PM seeks business deals with Trump amid militia concerns

Created at 10 Jul · 9:31 PM1 source↑ Market-relevant
IN SHORT

Iraq's new Prime Minister Ali al-Zaidi is set to visit the White House next week, aiming to sign business deals with President Trump. The visit coincides with the resumption of air shipments of Iraqi oil income, but concerns remain over Iran-aligned militias.

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Key Numbers

2,000US troops remaining in Kurdistan region
150,000Fighters in the Popular Mobilisation Forces (PMF)
2024Year Al Janoob Islamic Bank was sanctioned
September 30Deadline for militias to surrender weapons
October 7, 2023Date of Hamas-led attack on Israel

Who's Involved

Ali al-Zaidi
Iraq's Prime Minister, businessman with interests in real estate, banking, and logistics
Donald Trump
US President, whose pick Zaidi is considered to be
Chevron
US firm set to develop an oil field in Basra
Tom Barrack
Trump's ambassador to Turkey and envoy to Syria and Iraq, pushing for deals
Renad Mansour
Director of the Iraq Initiative at Chatham House
Abbas Kadhim
Director of the Iraq program at the Arab Gulf States Institute
Faiq Zaidan
Head of Iraq's judicial council, who smoothed over Zaidi's acceptability to Washington
Qassem Soleimani
Former Iran's Quds Force commander, whom Faiq Zaidan was once a disciple of
Mohammed Shia Sudani
Zaidi's predecessor as Prime Minister
Kataib Hezbollah
Hardline, Iran-aligned militia that has refused to relinquish heavy weapons
Harakat al-Nujaba
Hardline, Iran-aligned militia
Sarhang Hamasaeed
Independent Iraqi analyst
Harith Hasan
Iraq expert at the Doha Institute
Iraq's PM seeks business deals with Trump amid militia concerns

↳ Why This Matters

The visit highlights the complex geopolitical dynamics between the US and Iraq, with economic deals potentially strengthening ties, while the unresolved issue of powerful Iran-aligned militias poses a significant risk to regional stability and Iraq's internal security.

Key facts

  • Iraq's Prime Minister Ali al-Zaidi is visiting the White House next week to sign business deals with President Trump.
  • The US has resumed air shipments of Iraqi oil income to the Federal Reserve Bank of New York.
  • Deals to be signed include Chevron developing an oil field and a US firm expanding activities at the Akkas gas field.
  • A deal to rehabilitate the Kirkuk Baniyas pipeline will also be signed.
  • Zaidi has set a September 30 deadline for militias to surrender weapons, but key groups have refused.
  • US support for Zaidi's nomination was overt, with analysts calling it unprecedented.

Iraq's newly nominated Prime Minister, Ali al-Zaidi, is set to visit the White House next week, aiming to solidify business ties with President Trump. This visit follows the US's resumption of air shipments of Iraqi oil income, a move seen as timely given Zaidi's background as a businessman and his administration's focus on economic deals.

During the visit, Iraq is expected to sign preliminary agreements for Chevron to develop an oil field in Basra and for a US firm to expand activities at the Akkas gas field. Additionally, a deal to rehabilitate the Kirkuk Baniyas pipeline will be signed, a move supported by Trump's envoy Tom Barrack as part of efforts to counter Iran's influence.

Zaidi's selection as Prime Minister was notably overt, with analysts describing it as unprecedented in US-Iraq relations, indicating strong US backing. However, his position is delicate, balancing US financial leverage with Iran's influence through powerful Shia militias, such as the Popular Mobilisation Forces (PMF). These militias, integrated into Iraq's security apparatus, have been accused of various illicit activities and have largely refused to disarm by Zaidi's September 30 deadline.

Experts express skepticism about the effectiveness of Zaidi's disarmament plan, citing the unwillingness of hardline militias like Kataib Hezbollah and Harakat al-Nujaba to relinquish their weapons, and the lack of acceptance from Tehran. The situation is further complicated by the ongoing regional conflicts, which have emboldened Iran and its allies.

Frequently asked questions

Ali al-Zaidi is Iraq's newly nominated Prime Minister. He is described as a businessman with interests in real estate, banking, and logistics, and is considered to have strong backing from the US.

Deals include Chevron developing an oil field in Basra, a US firm expanding activities at the Akkas gas field, and the rehabilitation of the Kirkuk Baniyas pipeline.

The resumption of air shipments of Iraqi oil income, held at the Federal Reserve Bank of New York, is seen as a crucial financial lifeline for Iraq and a key theme of Zaidi's visit.

Powerful Iran-aligned militias, such as Kataib Hezbollah, have refused to disarm by the September 30 deadline set by Prime Minister Zaidi, posing a challenge to his government and regional stability.

What Happens Next

01Zaidi will meet with President Trump next week.
02Iraq and the US will sign deals for oil field development and pipeline rehabilitation.
03Militias have until September 30 to surrender their weapons.

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Cadence

How It Developed

Iraq's Prime Minister Ali al-Zaidi was nominated in April.
The US resumed air shipments of Iraqi oil income to the Federal Reserve Bank of New York.
Zaidi is scheduled for a visit to the White House next week.
Iraq and the US will sign a deal to rehabilitate the Kirkuk Baniyas pipeline.
Zaidi's government issued a deadline for militias to surrender weapons by September 30.
Some factions have refused to hand over arms, with powerful groups like Kataib Hezbollah refusing.
Experts doubt the seriousness of the disarmament deadline due to militia and Tehran's stance.

Sources

T1
Iraq's new PM wants business deals with Trump, but militias cloud visitMiddle East Eye

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