AGP Executive Report

US-Iran Escalation: Trump again floated renaming the Strait of Hormuz as “Trump Strait,” while the US and Iran traded fresh strikes after a deadly US attack on a wedding in Sirik; Iran says 18 were killed and 108 wounded, and the UN warned over civilian harm. Regional Fallout: Kuwait reported intercepting Iranian missiles and drones for a second day, as Iran targeted US-linked bases across the Gulf, including Kuwait, Jordan, Bahrain, and Iraq’s Kurdistan region. Oil and Iraq’s Stakes: The Hormuz fight kept markets jumpy—oil prices swung and Basrah crude jumped nearly 6% in local pricing, while Iraq’s export flows were boosted in some reports as buyers looked for routes amid the disruption. Iraq Security: A PMF member was killed and another injured in an armed attack on a Kirkuk checkpoint in Pirde (Altun Kupri), with ISIS remnants suspected but not confirmed.

US-Iran Escalation: Iran says U.S. strikes killed 18 and wounded 108, after Washington hit Iranian military targets and Tehran retaliated with missile/drone attacks on U.S. allies including Iraq’s Kurdistan region. Regional Diplomacy: Qatar urged de-escalation through diplomacy after the renewed exchange, while the UAE condemned “hostile Iranian attacks” across Bahrain, Kuwait, Jordan, and Kurdistan. Iraq Security: Harakat al-Nujaba warned it will confront any U.S. soldier remaining after Sept. 30, as Baghdad pushes disarmament and state control of weapons. Public Order: Iraq formed a specialized committee to monitor hate speech and sectarian/ethnic incitement. Economy & Services: A technical outage halted electronic payments nationwide, and the CBI placed Al-Taif Islamic Bank under guardianship. Energy & Trade: Hormuz tensions kept oil prices firm and shipping disrupted; Iraq’s oil exports and routes beyond the strait remain in focus. Local Life: Iraq opened applications for 1M residential plots in October and launched the 27th Baghdad International Book Fair.

US-Iran Escalation Hits Iraq: Iran’s IRGC claimed missile and drone strikes on US bases in Erbil, including damage to a maintenance facility and fuel storage, as Baghdad and the Kurdistan Region brace for spillover; the US Embassy in Baghdad and its Erbil consulate issued a security alert to Americans, warning of possible flight and airspace disruptions. Regional Attacks and Hormuz Pressure: The wider exchange followed US strikes on IRGC-linked targets and Iran’s retaliatory attacks across Bahrain, Kuwait, Jordan, and Iraq, with Kuwait reporting a drone-sparked fire in a residential complex in the capital. Oil and Markets: Oil prices climbed as Hormuz shipping slowed, while Basrah crude saw modest declines despite higher global benchmarks. Iraqi Sports: LaLiga ended its Iraq Football Association development consultancy after three years, while Iraqi winger Marko Farji completed a move to SC Heerenveen, adding fresh momentum to Iraqi talent abroad.

Diplomatic Turnover: US Chargé d’Affaires Joshua Harris is ending his year-long posting in Baghdad, with expectations that Steven Fagin could take over, as Washington prepares for the anti-ISIS coalition’s Sept. 30 withdrawal and Baghdad weighs how to manage security gaps. US-Iraq Security: The US says it backs Prime Minister Ali al-Zaidi’s plan to prevent attacks from Iraqi territory and strengthen the US-Iraq partnership, while Iraq pushes for weapons to be under state control ahead of the deadline. Kurdistan Demands: A Khanaqin delegation met President Nizar Amedi with 12 demands tied to security oversight, Article 140 implementation, stopping ID and ration card transfers, and freezing land ownership decisions. Corruption Crackdown: Iraq’s Integrity Commission says authorities caught an Education Ministry employee taking a bribe for paperwork, sending the case to the Al-Rusafa Investigation Court. Energy & Protests: Energy-sector workers and private generator owners protested across Basra, Anbar, and Kirkuk over higher electricity tariffs and tariff rates they say don’t cover operating costs, demanding permanent jobs and funding in the 2027 budget. Military Sales: The US State Department approved an about $800 million helicopter package for Iraq, including Bell utility and tactical helicopters, sensors, and training. ISIS Trials Move Forward: Iraq says it has finished interrogating 5,704 ISIS suspects transferred from Syria and is preparing to move cases to trial courts. Hormuz Pressure: With Strait of Hormuz risks rising, Gulf states and partners are accelerating pipeline and export-route alternatives, including Iraq’s push to expand crude export outlets.

US-Iraq Defense Ties: The US State Department approved an $800 million sale of Bell helicopters and support equipment to Iraq, aimed at boosting air mobility, reconnaissance, medical evacuation, border security and air-to-ground targeting. Disarmament Deadline: Iraq rejected a US proposal to keep troops beyond Sept. 30, saying Baghdad will proceed with weapons confinement, regulation and unifying decision-making, while stressing it won’t be part of the Iran conflict. US Army Shakeup: US Army Secretary Dan Driscoll submitted his resignation amid reported tensions with Defense Secretary Pete Hegseth, leaving the service without permanent top leadership during the Iran war. Iraq Housing & Oil Savings: Iraq launched a drive to distribute 1 million serviced residential plots to propertyless families and said refinery reforms could save about $15 billion annually. Economy & Energy Signals: Basrah crude prices jumped, with Basrah Heavy up more than 7%, as global benchmarks recovered. Regional Context: Iran’s President Masoud Pezeshkian said Tehran is ready to revive a MoU with Washington if the US returns to commitments, as strikes and counterstrikes keep the region on edge.

Kidnapping Case in Baghdad: A Baghdad court sentenced Amir Rahim Jabbar Lazim to 15 years for his role in the kidnapping of American journalist Shelly Kittleson, with the ruling under Iraq’s anti-terrorism law and time already served counted. Border Security: Iraqi border forces seized 15 kilograms of crystal meth in Sinjar, handing it to anti-narcotics authorities for legal action. Post-Coalition Deadline: Prime Minister Ali al-Zaidi rejected keeping any international coalition forces in Iraq past Sept. 30, saying talks with armed factions are progressing and security decisions must stay under state control. PMF Denies Al-Anbar Move: The Popular Mobilization Forces denied evacuating headquarters in Al-Anbar after reports of reductions tied to renewed US-Iran tensions. Human Rights Focus: Feyli Kurdish families marked the International Day of Victims of Enforced Disappearances, renewing calls for answers about missing relatives from decades ago. Local Life: A Kut delivery driver went viral for delivering late-night meals dressed as Batman, also visiting sick children in hospital. Oil & Gas Talks: Iraq’s Oil Minister met BP and ConocoPhillips to discuss expanding hydrocarbon development, including Kirkuk output and gas capture to cut flaring.

Al-Anbar Integrity Clampdown: Iraq’s Federal Integrity Commission halted the sale of a 550-dunam state property in Ramadi’s expansion area after finding it was undervalued by about 19.25 billion IQD (roughly $14.7M), with an integrity judge ordering procedures suspended and documents sent for external auditing. Khanaqin Security Arrest: Security forces arrested former PMF commander Kamran Wais Murad in Khanaqin over alleged ethnic incitement, after videos accused him of urging locals not to deal with Arabs and opposing Arab appointments. PMF Drawdown in Al-Anbar: PMF sites in western Al-Anbar were partially evacuated and staffed on a rotational basis amid renewed Iran–US escalation after the Larak Island strike, with Iran later claiming attacks on US bases in Jordan and drones hitting the UAE. Diplomacy on the Table: Iraq’s foreign minister reiterated that dialogue and peaceful solutions are the best path to de-escalate tensions with Iran, following an Iranian message delivered to Baghdad. Health Sector Push: Iraq met major pharma firms in the UAE to encourage a return to the Iraqi market, with GSK talks highlighted and expected company visits in mid-October. Energy Plans Move Forward: Iraq outlined a long-term push to raise Akkas gas field output to 400 MMscfd (143 MMscfd by mid-2027), advanced Al-Tayeb Economic City water infrastructure planning, and reviewed strategic crude pipeline projects including Basra–Haditha and Haditha–Baniyas.

Anti-Corruption Crackdown: Iraq’s Integrity Commission sentenced Deputy Oil Minister Ali al-Bahadli to seven years over illicit enrichment worth about $16.6m, ordering confiscation and repayment, as “Operation Dawn” targets senior figures. Parliament & Cabinet: Political blocs submitted cabinet nominees, but Interior and Defense posts remain disputed, with lawmakers awaiting consensus before votes. Disarmament Deadline: Iran-backed Iraqi militias are pressing new conditions ahead of Sept. 30’s weapons handover deadline, including demands tied to foreign troop withdrawal and wider security control. Fuel Shortages in Nineveh: Nineveh’s private stations blame allocation gaps between private and state outlets, warning queues will worsen unless daily fuel distribution matches coupon demand. Kurdistan Returns & Oil: KRG begins staged registration for displaced families to return to Sinjar, while Kurdistan oil output has resumed near 220–230k bpd after drone disruptions. Economy & Liquidity: Iraq is considering short-term borrowing from US banks to cover a liquidity crunch instead of printing more currency, amid delays in the federal budget. CBI Asset Freeze: The central bank ordered banks to freeze assets of targeted political and former officials and tighten monitoring of accounts and family holdings. Water & Security: Euphrates flows from Syria have increased and are expected to rise further, while a war remnant injured a shepherd in Saladin.

U.S.-Kurdistan Security: The U.S. is reportedly weighing an end to military aid to Iraqi Kurdish Peshmerga forces, raising fears of a security vacuum and more room for Iran-backed pressure. Water Crisis Watch: Iraq says Euphrates flows from Syria have quadrupled after new understandings, with officials citing 680 vs 151 cubic meters per second and ongoing cross-border water management. Oil & Trade Shifts: The U.S. overtook Russia as Turkey’s top crude supplier in June, while Iraq’s crude export routes are being discussed as Arab producers look for alternatives to Hormuz. Banking Reform Turning Point: Iraq’s banking sector faces a “critical crossroads” as advisers call for stronger governance, anti-money laundering controls, bank restructuring, and faster, safer digital payments. Regional Tensions: The U.S. is preparing for another attack on pro-Iranian forces, with officials citing concerns over militia strikes in Iraq. Baghdad Economy & Daily Life: Fuel prices in India stayed mostly steady despite global volatility tied to the Iran war and Hormuz disruptions. Iraq-Australia Links: Iraq’s Trade Ministry met Australia’s ambassador to expand investment and remove barriers for Australian firms.

Iraq Cabinet Track: Iraq’s Sunni National Political Council will pick candidates for Sunni-held ministries, with no objections reported to Jumaa Inad for defense as Prime Minister Ali Al-Zaidi pushes to complete his cabinet next week or in September. Anti-Corruption Push: Al-Zaidi ordered the Federal Integrity Commission to activate whistleblower rewards, tighten border oversight, and publicly expose graft, while the Central Bank told banks to scrutinize senior officials’ unexplained wealth under the Dawn crackdown. Security in Baghdad: Security forces arrested the main suspect in a Baghdad shooting that killed a brigadier general and others, after intelligence tracing to a hiding house tied to ISIS. Militia Disarmament Standoff: Kataib Sayyid al-Shuhada set 10 conditions for any weapons regulation, including full US withdrawal and removal of PKK fighters and Turkish troops from northern Iraq, as the Sept. 30 disarmament deadline nears. Kurdistan Fuel Crisis: Erbil says Baghdad charges it far higher crude prices than other refineries, driving record gasoline prices and fueling disputes over crude allocations. Regional Pressure on Peshmerga: Reports say the US may cut Peshmerga funding, but Kurdistan officials insist no final decision is in place. Health & Safety: Toxic sulfur odor returned to Baghdad, raising fresh health concerns. Crime & Drugs: Syria’s authorities seized 138 kg of hashish and 382,000 pills in an eastern countryside operation.

Protests & jobs: Baghdad and other Iraqi provinces are seeing repeated waves of demonstrations over public jobs, permanent posts for contract staff, and better rights, but protesters say the government keeps responding without deadlines—raising the question of whether street pressure still works. Baghdad security & housing: Authorities detained the main suspect in a Baghdad shooting that killed two security personnel during a crackdown on unauthorized housing in Al-Dora, Karara and Hay Al-Dijla, as officials cite a wider informal-settlement crisis. Power crisis: Private generator owners warn of an Iraq-wide shutdown in early September, blaming fuel-support failures and long grid outages; the Oil Ministry and Cabinet say allocations and tax handling have been adjusted. Kurdistan-US shift: Reports say the US plans to end military assistance to Iraq’s Kurdistan region as a security agreement nears expiry, with coalition drawdown expected by end-September. Iran-Hormuz pressure: Iran says it has agreed with Oman on a temporary corridor for ships through the Strait of Hormuz, but full reopening depends on US conditions tied to ending wars in Gaza and Lebanon. US visa moves: The US State Department revoked the visa of former Iraqi finance minister Taif Sami Mohammed after she was placed on an FBI terrorism watchlist.

US-Iraq Security & Governance: Iraq arrested four people over the killing of two police officers in Baghdad’s Dora area during an illegal-housing crackdown, as Baghdad presses to bring weapons under state control ahead of militia disarmament deadlines. Anti-Drug Drive: Prime Minister Ali al-Zaidi ordered monthly reports on anti-drug operations, including seizures and destruction of narcotics, and called for more resources plus treatment and rehabilitation for users. Sports & Culture: Iraq will host the national poomsae club championship in Baghdad on Sept. 5, with coaching and refereeing courses starting Sept. 4. US Visa Revocations: The US revoked former Iraqi finance minister Taif Sami’s visa and placed her on a terrorism watchlist after FBI designation, reversing her 2022 Biden-era International Women of Courage recognition; the move follows accusations tied to alleged terrorist financing through Iraq’s financial system. Regional Pressure on Iran: The US continues “Operation Economic Outcast,” proposing to cut Banque Misr UAE’s correspondent banking access to the US over alleged support for Iran’s financial networks.

Iraq Security & Sovereignty: Iraq says the international coalition mission will end Sept. 30, while Baghdad pushes for weapons to be under state control and warns against sectarian escalation as militia disarmament deadlines near. Hormuz Oil Pressure: US CENTCOM claims it helped nearly 1,500 commercial vessels transit the Strait of Hormuz, moving about 750M barrels, as Iran and Oman discuss reopening terms and compensation demands. Iraq Economy & Trade: Iraq’s oil export route planning continues as BPCL prepares its first Iraqi crude cargo via Hormuz-linked logistics, with ship-to-ship transfers toward Fujairah. Regional Politics: Syria’s President al-Sharaa appoints former SDF chief Mazloum Abdi as a presidential advisor after SDF dissolution and integration into state institutions, drawing Kurdish criticism. Baghdad Environment: A concrete plant near Baghdad was shut over environmental violations after a ministry inspection. Sports: Iraq is placed in Group B for AFC U17 Asian Cup qualifiers, with matches starting in November.

Baghdad Security: Iraq’s parliament voted to form a high-level committee to investigate the Dora-area shootout that killed Interior Ministry officers during an illegal-housing crackdown, and ordered related measures suspended until the probe ends. Drone Crackdown: Iraq’s National Security Service said it seized 25 drone frames and shut an illegal production site in Baghdad, arresting three suspects and warning investigations will target any links to security threats. Weapons Under State Control: Prime Minister Ali al-Zaidi said he will not resign as pressure grows over the government’s push to bring weapons under state control, calling it a constitutional principle handled through legal channels. US-Iraq Diplomacy: US envoy Steven Fagin is set to return to Baghdad to lead the US Mission in Iraq, with economic ties and investment expected to be central. Regional Energy Pressure: With Hormuz still a key concern in the Iran war, reports say crude flows through the Strait are creeping higher, helping steady global prices—while Iraq continues exploring export options beyond the strait. Kurdistan Enforcement: Sulaymaniyah Asayish arrested three suspected drug traffickers and seized marijuana brought from abroad.

Coalition Withdrawal: Iraq says the international coalition’s pullout is on track to be fully completed by September 30, with coordination led through Prime Minister Ali al-Zaidi’s office as German forces finish leaving Erbil and hand over facilities. Kurdistan Tensions: An IRGC commander warned Iran will not tolerate hostile activity from Iraq’s Kurdistan Region, stressing Tehran will act decisively if territory is used against Iran. Oil & Prices: Basrah crude fell again, with Basrah Heavy down to $74.32/bbl and Basrah Medium to $77.62/bbl, as global benchmarks slid; meanwhile, Reuters reports OPEC+ is losing influence as the Iran war disrupts routes and shifts demand toward China. Regional Security & Strikes: NBC reports Iranian attacks caused “unprecedented” damage to US intelligence sites and hardware across the Middle East, including a facility in eastern Iraq. Diplomacy & Tech: Iraq and Egypt held talks to expand digital cooperation, including fiber networks, data centers, AI, telecoms, cybersecurity, and regulatory frameworks. Erbil Drone Attack: Two drones hit sites in Soran district of Erbil province, sparking a fire; authorities have not released details.

Strait of Hormuz Tensions: Iran says the Strait of Hormuz remains closed to military vessels even as Iran and Oman discuss a temporary shipping framework—while Trump claims mines are cleared, and Iran warns US mine-detection ships could be targets. Iraq’s Sovereignty & Factions: Iran urges Iraq’s Coordination Framework to manage the weapons dispute with armed factions ahead of a Sept. 30 deadline, as Baghdad pushes to place weapons under state control. Kurdistan Anti-Corruption: President Masoud Barzani met Iraq’s Integrity Commission head and pledged full cooperation, saying Kurdistan will not be a safe haven for corrupt figures. Anti-Graft Court Case: Iraq’s Central Criminal Court sentenced former electricity official Mahmoud al-Issawi to three years, ordering confiscation of assets and major fines over illicit gains. Regional Trade Push: Iraq and Syria met in Damascus to expand bilateral trade, remove cross-border obstacles, and prepare new MoUs between chambers of commerce. Oil & Money Watch: Reports highlight pressure on regional economies tied to the Iran war, alongside continued currency movement in Iraq.