AGP Executive Report

Regional Diplomacy: Baghdad hosted OIC foreign ministers as regional tensions dominated talks, with Iraq renewing calls for a Gulf security pact that includes Iran. Iran’s foreign minister said Tehran’s proposal to reopen the Strait of Hormuz remains on the table—an issue with direct stakes for Iraq’s oil exports. Economy: The dollar rose in Baghdad and Erbil, while Finance Minister Falih al-Sari ordered Rafidain Bank to resume loans to public employees and expand credit for businesses, after months of lending restrictions and tightening liquidity. Accountability and Jobs: A corruption trial involving Al-Azm leader Muthanna al-Samarrai was postponed to October 29 after three witnesses denied links to the case. In Diyala, a council member said 198 industrial plots were turned to shops and apartments instead of factories, costing potential jobs; oil-sector graduates also protested unemployment in Kirkuk. Asian Para Games: Iraq’s Montather Farouk and Najla Imad reached table tennis semifinals, and the sitting volleyball team beat Japan 3-0.

Baghdad Diplomacy: The OIC foreign ministers’ meeting closed with the Baghdad Declaration backing Palestinian rights and urging the release of Palestinian tax revenues. Palestine’s foreign minister said her government urgently needs funding; the UN says about $6 billion in revenues is being withheld. Oil and Economy: Prime Minister Ali al-Zaidi ordered a corruption probe at the Oil Ministry and called for higher production and revenues as Hormuz disruptions deepen Iraq’s financial strain. Iraq has also requested an IMF financing program. Security: An explosion at a Popular Mobilization Forces ammunition depot in Baghdad killed one person and injured four; the PMF said no outside actor was involved. Digital Infrastructure: Baghdad opened Iraq’s first satellite communications ground station, a step officials say will strengthen digital sovereignty and support future satellite operations.

Public Funds: Iraq’s Integrity Commission says it stopped an alleged wheat-silo fraud scheme in Karbala that risked more than $8.7 million in public losses; 19 employees are under investigation. Security: An ammunition depot at a Baghdad PMF facility exploded, injuring personnel and prompting Prime Minister Ali al-Zaidi to order an investigation and tighter safety measures. Regional Diplomacy: Baghdad hosted the OIC foreign ministers’ meeting, with Iraq taking the council’s rotating chair. Al-Zaidi called for stronger trade ties and dialogue; Iran’s foreign minister said Tehran was open to US talks if given credible guarantees. Economic Pressure: The dollar rose to about 168,000 dinars per $100 in Baghdad, adding to concerns over the recent dinar devaluation and consumer costs. Local Concerns: Three oil workers were injured when a 1991 Gulf War landmine exploded in Al-Muthanna. Basra medical students also began an open-ended sit-in, seeking administrative and academic reforms.

OIC Diplomacy: Baghdad opened the 52nd OIC foreign ministers’ meeting and took over the council’s chairmanship, with delegates focusing on regional crises and Palestine. Prime Minister Ali al-Zaidi urged stronger economic ties among member states. Security: An ammunition blast at a PMF site in Baghdad injured five, according to the group; other reports said one member was killed and four wounded. The PMF blamed damaged ammunition and said an investigation is underway. Drones also targeted an Iranian Kurdish opposition base in Erbil province, with no casualties reported. Regional Ties: Turkish Foreign Minister Hakan Fidan met Iraqi leaders to discuss trade, energy and security, while Al-Zaidi called for a comprehensive water agreement with Türkiye. Economy: The IMF says it will firmly support Iraq as the country faces an estimated $60 billion in losses from the regional war and falling oil exports. Kurdistan: The KRG says federal transfers from Baghdad covered just 46 of 144 monthly salary payments between 2014 and 2025, renewing a dispute over the region’s budget share.

Baghdad Diplomacy: The 52nd OIC foreign ministers’ meeting opened in Baghdad, with Iraq taking the group’s rotating presidency and delegates expected to discuss Palestine, regional crises and cooperation. Economic Pressure: The IMF says it will firmly support Iraq with financing and policy advice, while Iraqi officials estimate the regional war has cost the country $60 billion, largely through disrupted oil exports. Currency Markets: The dollar traded around 167,000 dinars per $100 in Baghdad and Erbil on Saturday. Oil and Trade: Iraq has resumed commercial shipping in the Gulf after more than 50 years and transferred four Kirkuk oilfields to a BP-linked operator, targeting output of 450,000 barrels a day. Safety: A fire at a fuel depot in Sulaimani’s Tanjaro area was brought under control; officials said pipe work involving naphtha sparked the blaze, with no casualties initially reported.

Security: Kirkuk authorities imposed an overnight curfew in villages south of Daquq, citing concerns about suspicious movements and militant activity after recent airstrikes on ISIS hideouts. New Cabinet: Parliament completed Prime Minister Ali al-Zaidi’s Cabinet, appointing US-sanctioned Laith al-Khazali as deputy premier—a move drawing scrutiny over Iran-backed factions’ role in government. Economic Fallout: Foreign Minister Fuad Hussein says the US-Iran war has cost Iraq about $60 billion as Hormuz disruptions cut oil exports; foreign reserves have fallen by $20 billion and consumer prices have risen. Oil: Iraq transferred operations at four Kirkuk fields to a BP-linked consortium, targeting output of 450,000 barrels a day and plans to use associated gas. Regional Diplomacy: Türkiye’s foreign minister is due in Baghdad for an OIC meeting focused on Gaza and regional tensions.

Government: Parliament completed Prime Minister Ali al-Zaidi’s cabinet, approving 11 ministers and three deputy premiers, including Laith al-Khazali of the Iran-backed Asaib Ahl al-Haq. US-Iraq Tensions: Washington sanctioned Iraq’s International Development Bank, accusing it of helping Iran access US dollars. Foreign Minister Fuad Hussein said the US-Iran war has cost Iraq about $60 billion and urged a return to negotiations. Oil and Energy: BP’s consortium has taken over Kirkuk oil operations, while drilling began on a fourth well in Najaf as the province seeks to expand production. Education: Forty-two Iraqi universities made the 2027 QS Arab Region rankings, up from 36 last year; the University of Baghdad led Iraq’s institutions at 35th.

Government Formation: Parliament approved 11 ministers and three deputy prime ministers, completing most of Prime Minister Ali al-Zaidi’s Cabinet five months after taking office. The migration portfolio remains unresolved. Laith al-Khazali, a US-sanctioned figure linked to the Iran-backed Asaib Ahl al-Haq, was named deputy premier, drawing sharp criticism from a US congressman. US Sanctions: Washington sanctioned Iraq’s International Development Bank, alleging it helped Iran access US dollars and maintained ties to Iranian entities and armed groups. Regional Security: Al-Zaidi told Saudi Arabia that Iraqi territory would not be used to launch attacks, as Houthi strikes intensify. Iraq also reopened air routes with Kuwait after a temporary security-related suspension. Travel and Currency: The Central Bank says eligible travelers can access a $2,000 foreign-currency allocation every two months, starting October 18. Ancient Iraq: Researchers say a 75,000-year-old Neanderthal skeleton from Shanidar Cave bears a wound likely caused by a wooden spear, offering rare insight into violence and care among our ancient relatives.

Iraq–Saudi Ties: In Riyadh, Prime Minister Ali al-Zaidi condemned attacks on Saudi Arabia and said Iraqi territory would not be used to launch attacks against the kingdom or other countries. The talks focused on regional security and closer coordination. Currency Pressures: The dollar eased in Baghdad to around 166,500 dinars per $100, but traders say last week’s devaluation has caused steep losses and left businesses unsure how to price goods. The higher official exchange rate has also pushed the electronic passport fee up to 101,000 dinars. Oil and Economy: Gulf Keystone says the first additional oil cargo allocated by SOMO has been lifted, beginning settlement of past price adjustments for Kurdistan Region exports. Security and Society: Nearly one million Iraqis remain displaced, the UN says, as damaged homes, poor services and scarce jobs continue to impede returns. In Baghdad’s al-Dora district, a teenage girl died by suicide; authorities are investigating. Upcoming Meeting: Baghdad will host the OIC foreign ministers’ meeting on October 17–18, with Afghanistan, Sudan and Yemen among the issues on the agenda.

Saudi Ties: In Riyadh, Prime Minister Ali al-Zaidi condemned the Houthi attack on the airport and told Crown Prince Mohammed bin Salman that Iraq would not allow its territory to be used to threaten Saudi Arabia. The leaders discussed security coordination and regional stability. Kirkuk Attack: A roadside bomb targeting troops inspecting an airstrike site killed three Iraqi soldiers, including a brigadier general, and wounded two others. Economic Pressure: After the dinar’s devaluation, Babil’s council ordered tighter checks on food, medicine and construction prices. Baghdad has waived customs duties on food and medicines to ease the impact. Security and Politics: Iran-backed factions say they have conditionally agreed to place their weapons under state control, while an Iraqi lawmaker urged Baghdad to remain neutral between Washington and Tehran. The Kurdistan Regional Government again demanded that its 14.14% census share determine its federal budget allocation.

Saudi Ties: Prime Minister Ali al-Zaidi made an unannounced visit to Riyadh as Baghdad seeks closer ties with its southern neighbor amid escalating regional attacks. Security: A bomb killed an Iraqi Army brigadier general and a soldier during a sweep near Kirkuk and wounded two others; Iraqi F-16s also struck ISIS hideouts in the province. Government: Parliament is due to vote on vacant cabinet posts Thursday, as al-Zaidi pushes to complete the lineup. Economy: The dollar rose to 167,000 dinars per $100 in Baghdad and Erbil’s wholesale markets. The government has waived customs duties on food and medicines to help limit price pressures, while the IMF projects Iraq’s economy will contract 16% this year. Oil and Trade: Iraq says crude exports have climbed to about 2.7 million barrels per day and wants to boost shipments through Turkey. The international transport and logistics expo has been postponed to November 25–27.

Cabinet Politics: Parliament is set to vote Thursday on vacant and newly created ministerial posts, including deputy prime minister positions. A Yazidi bloc says the community remains underrepresented, while a lawmaker questions whether four deputy premiers are constitutional. Security: Iraqi F-16s destroyed ISIS hideouts in Kirkuk, and authorities detained 74 people for illegal border crossings last month. In Diyala, a council member alleges the Iran-border fence cuts several kilometres into Iraqi territory, prompting calls for an investigation. Economy and Energy: The IMF forecasts Iraq’s economy will contract 16% this year. The Central Bank says traders will not bear the difference under the new dollar exchange rate, as officials also explore Japanese financing for residential solar projects. Kurdistan: Iraq’s top court ruled the Kurdistan Region’s state security law unconstitutional. Iran says it seized a weapons cache being smuggled from the Kurdistan region. Sports: Al Zawraa opened its Gulf Champions League campaign with a 1-1 draw against Qatar SC; Al-Shorta beat India’s East Bengal 3-2 in Asian competition. Detention: Australian engineer Robert Pether has returned to Ireland after five years in Iraqi custody.

Economic Outlook: The IMF forecasts Iraq’s economy will contract 16% in 2026, with inflation rising to 3.5% and the current-account deficit widening to 10.8% of GDP. It projects a 19% rebound next year, but the near-term outlook remains stark. Security: Iraqi officials warn that forces lack the coalition’s surveillance technology to track ISIS, which retains active areas and sleeper cells. Kurdistan President Nechirvan Barzani says weapons must be under government control and Iraq must not threaten Gulf states. Kurdistan: The PKK has withdrawn from four camps near the Turkish border, part of a wider disarmament process. Energy: Kurdistan could raise gas output from 1 billion to 2–3 billion cubic feet daily, but officials cite bureaucracy and security risks as obstacles. Baghdad and Riyadh are also discussing energy cooperation, including a possible expansion of a Najaf solar project. Markets and Accountability: The dollar rose in Baghdad, while Iraq’s Integrity Commission halted the undervalued sale of 57 railway properties in Babil, preventing an estimated 24 billion dinars in losses.

Detention: Australian engineer Robert Pether has left Iraq and reunited with his family in Ireland after years in prison and under a travel ban. He said his return does not erase the injustice he endured. Energy: Iraqi and Saudi ministers discussed expanding cooperation in Riyadh, while Baghdad plans to raise electricity imports from Turkey to 2,000 megawatts. US estimates of oil flows through Hormuz recovering to 14 million barrels a day exceed tanker-tracking figures, with Iraq among the Gulf exporters. Kurdistan: Nechirvan Barzani said Iranian Kurdish opposition groups acted irresponsibly during the Iran war, putting the Kurdistan Region at risk. Separately, Turkish state media confirmed the PKK’s withdrawal from four positions in northern Iraq as part of the peace process. Security: Iraqi fighter jets struck a Daesh position in Diyala, as Iraq takes on a greater counterterrorism role following the coalition mission’s end. Politics: The 2027 budget remains open to negotiation, but KDP lawmakers say Kurdish concerns over the Region’s share and rights must be addressed. Local government: Al-Muthanna’s council elected Tawfiq Al-Hassani governor after accepting his predecessor’s resignation.

Kurdistan Politics: PUK leader Bafel Talabani urged the Kurdistan Regional Government to improve ties with Baghdad, calling Prime Minister Ali al-Zaidi’s leadership an opportunity. He also pressed for closer PUK-KDP cooperation. Security: Two drones struck a camp housing Iranian Kurdish opposition groups near Erbil; no casualties or damage were immediately reported. Economy: Customs revenues rose by 108 billion dinars year-on-year in September, while the dollar climbed to about 165,000 dinars per $100 in Baghdad’s exchange markets. Regional Tensions: Baghdad has condemned the deadly Houthi attack on Riyadh airport, while Iraqi militia Kataib Hezbollah voiced support for the Houthis. Saudi Arabia extended the airport closure amid threats of further strikes. Accountability: An Iraqi court sentenced two Sunni Endowment employees to four years each for forging property-leasing approvals. Separately, authorities recovered about $2.64 million for Rafidain Bank in a corruption case. Detention Case: Australian engineer Robert Pether has left Iraq for Ireland after a court dismissed proceedings against him and lifted his travel ban, ending a five-year ordeal.

Regional Diplomacy: Baghdad condemned the deadly Houthi strike on Riyadh airport, which killed 12 and injured 309, and called for an end to military escalation. Prime Minister Ali Al-Zaidi is expected to visit Saudi Arabia and Kuwait this week, with talks set to cover regional tensions and a possible revival of Iraq’s oil pipeline to the Red Sea. Energy and Economy: Al-Zaidi discussed boosting oil and gas production with TotalEnergies and ConocoPhillips, saying Iraq aims to end gas imports. Non-oil revenues reached 8.7 trillion dinars by July, up 23.5% year over year, but spending left a deficit exceeding 26 trillion dinars. A lawmaker has challenged the dinar rate increase in federal court. Housing and Diplomacy: Diyala has prepared land for about 44,000 housing plots under the Watan Initiative, while Baghdad will host the OIC foreign ministers’ meeting on October 17–18. Security: Iraqi intelligence helped Libya foil an attempt to smuggle 1.2 million Captagon pills.