AGP Executive Report

US sanctions on Iran-backed proxies: The US Treasury expanded its “Economic Outcast” campaign, sanctioning entities and individuals supporting Hezbollah and Iraq’s Kataib Hezbollah, citing financial and logistics support networks across Iraq, Lebanon, the UAE and Türkiye. Iraq security & governance: The same week’s broader regional pressure backdrop included Iraq-related counterterror and state-control themes, with reporting tying Kataib Hezbollah to Iraq’s PMF funding flows. 9/11 remembrance with a service angle: Across the US, communities marked the 25th anniversary with memorial rituals and volunteer drives, including calls to thank first responders and veterans—an echo of the post-9/11 security and war-on-terror legacy that still shapes policy debates. Aviation safety focus: A separate podcast looked at how drone activity and conflict-zone overflights affect civil aviation and airspace safety, reflecting how modern security risks now intersect with transport.

US Sanctions on Iran-Linked Militias: The U.S. Treasury’s OFAC launched new “Operation Economic Outcast” sanctions targeting networks tied to Kata’ib Hizballah and Hezbollah, with designations spanning Iraq, Lebanon, the UAE and Türkiye, plus a stricter Iran licensing stance. Iraq-Turkey Security and Water Talks: Türkiye’s intelligence chief met Iraq’s parliament speaker in Ankara to discuss security cooperation and rehabilitation of Iraq’s water infrastructure, agriculture and reconstruction. Transit Trade Boost via Iraq: Iraq approved a transit cable deal routing Gulf-to-Europe telecom capacity across Iraqi territory, leveraging Iraq’s land corridor role. Oil-Linked Water Deal: Iraq’s Council of Ministers approved an amendment allowing crude exports to Turkey up to 33,000 bpd as part of a water framework agreement. Diplomatic Business Push: Iraq’s ambassador to the UK met the Iraq Britain Business Council’s MD to plan the council’s autumn conference and discuss investment amid regional security risks. US “Gas Prize” Focus: A report says the U.S. is moving to lock down development of Iraq’s Akkas gas field in Anbar, positioning energy firms for influence.

Banking & Liquidity: Iraq’s state-owned banks have largely stopped issuing loans and salary advances as liquidity tightens, with regulators and integrity bodies reviewing at least $763,000 worth of lending approvals and credit facilities, including at Rafidain and Rasheed, after deposits and cash-credit both fell in 1H 2026. Public Confidence in Finance: A separate report argues Iraqis keep more money in cash because trust in banks is still weak, citing Central Bank data showing currency outside banks far outweighs deposits inside. Kurdistan Budget Talks: The Kurdistan Regional Government pressed Baghdad for a fair constitutional share of the 2027 federal budget, including oil revenues, investment funds, and access to international loans and grants, during meetings with the Finance and Planning ministries. Oil & Trade Routes: Iraq is advancing a major strategic pipeline plan with U.S. and Qatari partners to connect Basra to Fishkhabur and extend toward Syria’s Baniyas, aiming to reduce reliance on Hormuz amid regional disruptions. Anti-Corruption: Authorities moved detainees tied to the widening corruption probe of former Oil Ministry official Adnan Al-Jumaili toward court after questioning expanded the case and led to further arrests.

Iraq-EU Trade Talks: Iraq’s Ministry of Trade met EU representatives to map out trade and investment cooperation, boost access for Iraqi goods to European markets, and support the private sector. Iraq-Armenia Business Council: Iraq and Armenia agreed to form a joint business council in Baghdad, with plans for trade delegations, joint investment forums, and simplified procedures for companies. Iraq-Egypt Freight & Expo: Iraq and Egypt discussed easing land freight procedures to cut transport costs, and the idea of a “Made in Egypt” exhibition in Baghdad to help Egyptian firms sell into Iraq. Farmers-to-Markets Platform: Iraq’s Agriculture Ministry is studying a digital platform to connect farmers directly with buyers, publish real-time prices, and use secure payments and delivery guarantees. Oil Sector Digital Upgrade: Iraq’s gas filling company in Baghdad launched cybersecurity and tech operations centres plus an electronic system to track liquid gas movements in real time. Decent Work Programme: Iraq signed a four-year “Decent Work” programme (2026-2029) with unions, industry and the ILO, targeting jobs, skills, workers’ rights and social protection. Anti-Corruption Push: Iraq’s parliament backed the government’s anti-corruption drive, saying no suspects should be protected from prosecution. Textbook Shortages: Iraqi schools are facing textbook shortages with less than two weeks to the new school year, as printing contracts and funding lag behind plans.

Fuel Protests in Mosul: Iraqi security forces dispersed truck drivers’ protests over fuel shortages near the Al-Shamsiyat checkpoint, clearing blocked roads and easing severe congestion. Power Crunch in Diyala: In Diyala, depleted generator stocks and funding gaps are leaving some offices with only about one hour of electricity followed by two hours of outages, pushing staff to pool money for generator fuel as prices and availability tighten. Iran-Iraq Trade Push: Iraq and Iran’s business leaders say bilateral trade could reach $20B if banking and procedural barriers are eased; Iraq’s trade with Iran topped $10B in 2025, mainly food and consumer goods. Displacement Needs: IOM says more than one million Iraqis remain internally displaced, calling for housing, livelihoods, documentation, and basic services, with small and medium-sized businesses flagged as a jobs lever. Oil Revenue Pressure from Hormuz: An Iraqi analysis estimates Tehran’s transit tolls are draining nearly a third of Iraq’s oil earnings, with payments linked to Hormuz fees raising sanctions risk. OPEC+ Quota Bid: Iraq has formally asked OPEC+ to raise its production baseline to 6 million bpd, citing rebuilding costs and capacity needs. Currency Watch: Parallel USD rates in Baghdad, Erbil, and Basra climbed above 156,000 IQD per $100, widening the gap versus the Central Bank peg. Regional Security Shock: Iran claimed it targeted US-linked facilities at Jordan’s al-Azraq airbase, with Jordan saying it intercepted most of the ballistic missiles.

Iraq Oil & Exports: Iraq’s oil exports rebounded to above 3 million bpd in September after earlier disruptions tied to the Strait of Hormuz and a northern pipeline shutdown, with Baghdad citing new refining focus and fresh foreign partnerships. Central Bank Watch: The CBI said Al-Taif Islamic Bank withdrawals and obligations will be handled gradually under guardianship for 18 months, prioritizing salaries and protecting depositors after “serious violations.” Banking Oversight: Iraq also moved to curb forex risks, with the CBI revoking licenses of three forex companies and warning investors about fraudulent financial entities. Energy Deals & Routes: Iraq is pushing to restore and expand the northern export route with Ankara to reduce reliance on Hormuz, while talks continue on regional connectivity. Regional Security Spillover: Iran fired ballistic missiles at US-linked targets including Iraq’s Erbil region, and US forces struck five Iran-linked oil tankers tied to IRGC networks, underscoring how shipping and energy flows remain tightly linked to the wider conflict. Tourism Push: Iraq’s heritage sector is calling for a national tourism strategy to turn sites like Babylon and Ur into a stronger jobs and revenue engine. Kurdistan/Armed Groups: Iraq’s PMF is preparing to absorb PKK members not covered by Turkey’s disarmament process, raising new security and smuggling-route concerns. Business & Trade Expo: Baghdad hosted the 4th Iraq International Exhibition for Oil, Gas and Petroleum Projects, with Chinese firms highlighting technology transfer and scholarships.

Wasit Farmers’ Protest: Farmers in Sheikh Saad, Wasit, blocked a main highway with tractors and combine harvesters over rising diesel prices and delayed crop payments, with lawmakers saying owed amounts reach 1.5 trillion IQD. Finance Ministry Reshuffle: Iraq’s Finance Ministry ordered immediate administrative changes, including removing Ahmed Jawad Hassan as director-general of the Financial and Accounting Training Center and appointing Laith Mohammed Hussein as acting head of the Agricultural Cooperative Bank. Healthcare Funding Gap: The Health Ministry needs at least 9 trillion IQD (about $6.84B) to cover debts, contracts, and medicines, as MPs warn of a deepening liquidity squeeze. Iraq-Türkiye Connectivity Push: Türkiye’s parliament speaker said the Development Road Project linking Iraq and Türkiye should become fully operational soon, aiming to connect Asia and Europe via Iraq’s Grand Faw port. Basra Oilfield Labor Tension: West Qurna-2 technical and engineering staff threatened a general strike unless contracts are regularized and overdue wages are paid within a week, warning of disruption to output and exports. Currency Pressure: The parallel dollar rate in Baghdad hit 156,000 IQD per $100, above the Central Bank benchmark of 131,000 IQD. Anti-Corruption Rewards: Iraq says more than 26,000 corruption reports were filed with the Integrity Commission under a rewards and protection system, with recovered funds/assets reported above 1.359 trillion IQD. Airspace Operations: Iraq’s transport ministry ruled out any imminent closure of national airspace, saying alternative corridors and nine new international routes are now active.

Strait of Hormuz & Iraq’s trade exposure: Iraqi FM Fuad Hussein met Arab League chief Nabil Fahmy in Cairo to push dialogue and warn that Hormuz navigation disruptions could hit Arab economies, with Iraq singled out for the risk to energy and trade flows. Energy logistics shift: Kirkuk and KRI crude exports are running at about 220,000 bpd via the Iraq–Türkiye pipeline to Ceyhan, with volumes stable and framed as an alternative as Hormuz constraints squeeze southern terminals. Jobs & social pressure: Prime Minister Ali al-Zaidi ordered the Finance Ministry to allocate permanent and contract posts for long-waiting graduates under the federal budget, after fresh protests from petroleum institute graduates and engineers. Banking confidence: The Central Bank of Iraq said most deposits are guaranteed and reiterated plans for a currency exchange program and new lending initiatives tied to banking reform and private-sector support. KRG budget talks: A KRG finance delegation is in Baghdad for 2027 federal budget discussions, pressing for a share aligned with population (12.67%). Regional investment signal: Kurdistan Region won an award at the UAE AIM Congress for attracting FDI, boosting its investment branding. Local services in Kurdistan: Tafga residents in Sulaymaniyah demanded action on water, roads and heating fuel shortages as winter nears.

Iraq Banking Stability: The Central Bank of Iraq said the “vast majority” of deposits are guaranteed and pledged intervention if any disruption occurs, as it reassures confidence amid ongoing sector concerns. Currency Watch: In Baghdad and Erbil, the dollar’s parallel-market rate climbed, with Baghdad retail selling around 156,000 IQD per $100 versus the CBI’s 131,000 peg. Finance Ministry Politics: A Shafaq News report says political pressure is blocking administrative changes at the Iraqi Finance Ministry and affiliated bodies, leaving long-serving officials in place. Air Defense Upgrade: Iraq will modernize air defenses in three years, accelerating work on integrated radar and missile networks to better counter drones and missiles. Oil & Trade Pressure: With US-Iran tensions flaring, oil prices jumped and shipping risk rose around the Strait of Hormuz, keeping regional supply fears front and center for Iraq’s energy-linked economy. Auto Sector Deal: Ford appointed Shimal Al Jazeera Auto-Trading and Commercial Agencies (SAT) as its Iraq distributor partner from Oct. 1, covering vehicle sales, parts, and aftersales services.

Heritage & Tourism: Iraq has started restoration work on the 3,400-year-old Kassite temples of Aqarquf (Aqar Quf) west of Baghdad, with an Italian archaeological delegation helping repair weathered brick and mud-brick walls and reinforce cracks to protect the site’s original character. Oil Policy: OPEC+ kept October production unchanged after pausing recent output hikes, with Iraq among the core members; the cartel said it will keep monthly market reviews, as Strait of Hormuz disruptions continue to cloud supply. Kirkuk Energy Update: North Oil Company denied claims of a gas leak at the Bai Hassan field, saying operations and production are normal. Local Security & Fuel Access: A Kirkuk Oil Products Distribution official was reportedly taken by an unidentified force after stopping a woman for bypassing a fuel queue, with no official explanation yet. Banking Stability: Central Bank of Iraq governor Nizar Nasser Hussein said most depositors’ funds at Al-Taif Islamic Bank are guaranteed and CBI will intervene if needed, as the bank prepares to return funds after a CBI-appointed committee took control. Public Health & Prices: Parliament formed a temporary committee to tackle soaring medicine prices and pharmacy exploitation, including moves to improve prescription clarity and stop doctors from steering patients to specific pharmacies. Infrastructure Spending: Prime Minister Ali Al-Zaidi ordered 30 billion dinars for Al-Diwaniyah Stadium construction, released in installments based on completion rates. Trade Routes: Iraq is moving to export Basra crude via Syria by land to Baniyas, with SOMO in talks to ship crude by tanker trucks for storage and onward sales. Regional Connectivity: Kurdistan Region was named a finalist at the UAE’s 2026 AIM Investment Awards, highlighting its push to attract foreign investment. Digital Access: Iraq authorized Starlink earlier this year, and legal sales in nearby UAE are expected to ease terminal supply and pricing pressures in the region.

Iraq Oil Exports & Energy Capacity: Iraq says it has lifted crude export capacity to above 3 million bpd and is pushing toward 5 million bpd by finishing strategic pipelines and export links that reduce reliance on the Strait of Hormuz. Strait of Hormuz Disruption: Iran’s IRGC targeted tankers and US-linked vessels in the strait, while the US struck Iranian oil tankers in response—raising fresh shipping and price risks. Sanctions Pressure vs Trade Reality: A sanctions expert says US financial pressure on Iraqi banks won’t stop Iraq-Iran trade because much of the commerce runs outside the dollar and beyond Washington’s reach. Banking Stress in Iraq: Depositors protested after Al-Taif Islamic Bank was placed under guardianship, while Iraq also saw reports of liquidity probes and a Qi Card scam crackdown. Jobs & Sector Friction: Petroleum institute graduates protested for oil-sector hiring in Baghdad and Basra, as officials said ministries are working through higher-level channels. Local Governance & Regulation: Diyala’s council urged tighter enforcement of a liquor shop ban near homes. Agriculture & Food Security: Nineveh released 400,000 carp fingerlings into the Tigris to boost fish stocks and support livelihoods.

Central Bank Watch: Iraq’s CBI denied any change to the official US dollar rate after social media claims deposits would be priced at 1,460 dinars per dollar from Sept. 6, reiterating the latest published rate of 1,310 dinars and warning the rumors aim to destabilize the economy. Banking Stability: The CBI also reassured depositors that funds are protected and liquidity is adequate, saying guardianship of Al-Taif Islamic Bank is a legal precaution, not proof of bankruptcy, and noting deposit insurance coverage. Airport & FX Logistics: Baghdad International Airport warned travelers of possible currency exchange delays after the CBI closed several exchange companies at the airport, urging passengers to arrive early. Fuel Crisis: Long queues returned at Baghdad fuel stations as gasoline supplies dwindled amid regional conflict-linked import disruptions, highlighting Iraq’s reliance on imported refined products. Anti-Corruption: Iraq’s Federal Integrity Commission arrested five staff overseeing a hospital renovation in Al-Muthanna, alleging cost discrepancies, delays, and stalled equipment affecting patient services. Regional Trade Shift: Thai rice shipments to Iraq are being rerouted overland via Jordan and Türkiye as Strait of Hormuz disruptions reshape Gulf trade flows. Cross-Border Business: Iran and Iraq’s Kurdistan Region discussed easing border movement and expanding road transport and tourism links, focusing on customs procedures and logistics.

CBI Banking Assurance: Iraq’s Central Bank says depositors’ funds are safe and that guardianship of Al-Taif Islamic Bank is a legal, precautionary step, noting liquid assets exceed 60% of short-term liabilities and deposit insurance covers customers if a bank can’t meet obligations. Integrity Probe on State Banks: Iraq’s Federal Integrity Commission and other regulators are investigating liquidity depletion and exceptional lending at state lenders Rafidain and Rasheed, focusing on loans and financing above 1B dinars and whether approvals followed rules. Iraq Borrowing Law Debate: Eco Iraq warns a proposed borrowing law could hurt non-oil revenues, open space for corruption, and create unfair competition via tax and customs exemptions for lenders. Trade & Border Links: An Iranian tourism and road transport delegation visited Kurdistan border crossings to reduce delays and standardize vehicle procedures, aiming to expand land transport and tourism coordination with KRG customs and highways. Agriculture Self-Sufficiency: Iraq’s Agriculture Ministry says it achieved full wheat self-sufficiency for a third straight season and complete date production self-reliance, supported by subsidized irrigation upgrades and climate-adaptive seeds. Oil Exports & Prices: Iraq’s Basra Heavy and Basra Medium crudes posted strong weekly gains despite late pullbacks, while reports also highlight continued efforts to move exports via alternative routes amid Hormuz disruption.

Oil Exports: Iraq’s Ministry of Oil says August crude exports hit about 70 million barrels, bringing preliminary revenues near $4.5 billion, with average daily exports topping 2 million barrels after earlier shipping bottlenecks eased. Fuel Shortage & Policy Response: Iraq’s Oil Ministry pushed back on rumors blaming refining and distribution, saying station overcrowding stems from a production-consumption gap and delayed tanker arrivals; it plans to use more tankers to boost daily supply and urges citizens to avoid hoarding. Green Taxi Plan: Baghdad is moving ahead with a “Green Taxi” project to introduce electric taxis and charging facilities, with feasibility work underway and officials considering contracts to import vehicles via a government-backed arrangement, timed amid gasoline shortages. Anti-Graft & Land Enforcement: Iraqi security forces arrested a man in Baghdad’s Al-Zafaraniya accused of illegally selling and subdividing state agricultural land, seizing weapons and forged stamps as authorities step up action against encroachment. Human Trafficking Crackdown: Iraq’s National Intelligence Service says it arrested a 10-member network in Baghdad accused of luring foreigners with job promises, then holding them captive, torturing them, and demanding ransoms. Business/Finance Watch: Iraq’s currency and banking headlines this week also included reports of small banknote shortages disrupting Kirkuk markets and broader concerns about liquidity and oversight in the power sector.

Iraq Oil & Trade: Iraq’s oil exports jumped 73% in August as Hormuz flows eased, with PetroChina and Reliance lifting volumes and helping support regional fuel supply. Public Finance & Corruption: An Iraqi MP says Oil Ministry oversight failed in graft cases tied to Deputy Oil Minister for Refining Adnan Al-Jumaili and detained Oil Products Distribution chief Hussein Talib, while recovered assets may ease but won’t solve Iraq’s liquidity stress. Transport & Daily Life: Baghdad faces a major school-year crunch: about 3 million cars in the capital versus only ~1,000 state buses, with a driver shortage pushing the government to transfer staff from the Electricity Ministry to keep services running. Regional Business Disruption: Flight delays and cancellations across the UAE and Dubai-linked routes continue as US-Iran escalation disrupts air travel and raises security pressure for carriers and passengers. Energy Prices: Oil prices rose for the week on renewed US-Iran tensions, with diesel hitting record highs—raising costs that ripple into inflation and borrowing pressures. Corporate Moves: DNO withdrew its takeover bid for Genel Energy after Genel refused to engage, sending Genel shares down sharply.

Iraq Economy & Security: A key Iraqi lawmaker warned that missing the Sept. 30 weapons-control deadline could trigger tougher international pressure and even an “economic shutdown” if oil exports are disrupted or Iraq is isolated from the global financial system, noting oil is about 79% of federal revenue and SWIFT access is vital. Oil & Markets: Oil prices stayed mixed as investors weighed renewed US-Iran strikes and Israeli threats against signs Russia is open to talks, with the Strait of Hormuz risk still driving supply concerns. Iraq Energy Projects: Iraq is preparing studies for a 2 mln bpd Basra–Haditha pipeline network to Syria (Baniyas/Fishkhabour) to cut reliance on Hormuz routes, while Midland Oil seeks US partnerships to develop gas fields in Diyala and Anbar. Food & Agriculture: Nineveh expanded seed cleaning and treatment lines with World Bank support, lifting capacity to 30 tons per hour, as Iraq pushes food security. Housing Push: Baghdad ordered provinces to plan new modern cities (10,000–15,000 dunams each) to tackle a housing gap estimated at 2.5–3 mln units. Anti-ISIS Justice: Iraq’s judiciary said it finished interrogations of 5,704 ISIS detainees for trial.