AGP Executive Report

Protests & Jobs: Contract and company employees staged demonstrations in Baghdad, Babil and Kirkuk over overdue salaries, unpaid entitlements and demands for permanent posts, with workers also pressing for long-delayed land allocations. Dinar Watch: Iraq’s parallel exchange rate for the dollar held near 154,500 IQD per $100 in Baghdad and Basra, while Erbil traded slightly lower, keeping a wide gap versus the Central Bank’s official rate. Oil Routes & Hormuz: Iraq renewed requests for Iran to allow more tanker passage through the Strait of Hormuz as Tehran and Washington escalate sanctions threats; analysts say commercial shippers adapted earlier, making official clearances look more like public messaging. Energy Diplomacy: Iraq’s oil and finance ministers met Saudi counterparts in Riyadh to discuss energy security, electricity and gas cooperation, and ways to reduce dependence on Hormuz via Turkey’s Ceyhan and routes through Jordan and Syria. Agriculture & Agritech: Baghdad hosted the 17th Agricultural Week, featuring deals and a plan to expand Iraq’s date palm output toward 30 million trees using tissue-culture biotech. Water Safety: A watchdog warned about roughly 500 pollution sources contaminating the Tigris, citing sewage and industrial waste hotspots that could worsen health and food risks. Transport & Trade Links: Iraq and Turkey are nearing final talks on the Development Road agreement, with design work reported above 95% for the road and close to 90% for rail. Aviation: SalamAir opened ticket sales for a new Muscat–Erbil direct service starting Oct. 25, 2026, aiming to boost tourism and business travel. Security & Courts: Iraq began procedures to repatriate about 6,000 foreign citizens linked to Islamic State from custody in Iraq, excluding those sentenced to capital punishment.

Hormuz Oil Access: Iraq’s President Nizar Amidi said Iran is facilitating some Iraqi crude tankers through the Strait of Hormuz, while Iran’s IRNA linked the permission to Baghdad’s repeated requests during talks with Parliament Speaker Mohammad Bagher Ghalibaf; the move comes as shipping remains far below normal and Iraq pushes alternative export routes via Turkey, Syria and Jordan. Sanctions Pressure: Iran’s top security adviser Mohsen Rezai warned neighboring states that joining the US “economic war” against Tehran would make them “enemies,” as Washington prepares new “toughest” financial penalties and oil markets react to tighter supply fears. Iraq Sovereignty & Arms Control: Amidi reiterated that Iraq’s constitution requires weapons to be under state control and said Baghdad will not allow Iraqi territory to be used for attacks, as the Sept. 30 coalition withdrawal deadline approaches. Iraq Finance Watch: Iraq’s Finance Minister Faleh Al-Sari is set to brief parliament on the financial crisis and proposed solutions after salary and pension disruptions tied to a widening shortfall. Connectivity & Telecom: Iraq’s Communications Ministry says Erbil and Baghdad will discuss joint 5G activation next week, including simultaneous licensing steps and coordination with global firms. Economic Snapshot: Iraq ranked 76th globally in 2026 GDP-per-capita (PPP) at about $15,360, per Global Finance magazine.

Oil Exports & Hormuz: Iraq’s president said some Iraqi oil tankers are being facilitated through the Strait of Hormuz, warning the waterway’s disruption hits the whole world; the move follows Baghdad’s push for “facilities” during Iranian parliament speaker Mohammad Bagher Ghalibaf’s visit, as Iran authorized passage “so far” amid heightened US-Iran pressure. Banking & Credit: Iraq’s state banks have halted or sharply curtailed lending without clear 2026 credit plans, squeezing construction, SMEs, investment, housing and even electronic personal advances—raising calls for government and parliament to demand measurable targets. Trade Logistics: Iraqi trucks have started using the international TIR transit system for the first time, with early routes linking Saudi Arabia’s Arar crossing toward Central Asia to turn Iraq into a regional corridor. Telecom Policy: Iraq’s Communications Ministry denied signing a direct Starlink deal, saying Earthlink and others remain partners and Starlink could join within two years. Cabinet Formation: President Nizar Amedi said only two to three ministerial posts remain unresolved, with the government warning Hormuz-linked disruptions could pressure exports and public salaries. Energy Strategy: Kirkuk aims to lift crude exports through Türkiye to 1 million bpd as talks on oilfield development and infrastructure continue. Security Milestone: Iraq said the Sept. 30 coalition withdrawal will be a “historic transformation,” framing it as a shift to full state control.

Hormuz & Oil Exports: Iraq’s PM Ali al-Zaidi says Baghdad is pushing to more than double oil output to 8–10 million bpd within six years and is accelerating alternative export routes via Türkiye (Ceyhan), Syria (Baniyas) and Jordan (Aqaba) as the Strait of Hormuz remains disrupted. Energy Diplomacy: Saudi and Iraqi ministers met in Riyadh to coordinate energy security and stable supplies, while Iraq’s oil and finance teams also discussed boosting cooperation with Saudi Arabia. Sanctions Pressure on the Region: Iran warned any new U.S. economic curbs would trigger “devastating” retaliation, as Washington prepares further financial penalties; analysts note the squeeze is already hitting Iranian crude offers to China and raising oil-price risk. Iraq’s Militia Disarmament Deadline: Iraq reaffirmed Sept. 30 as the deadline to bring weapons under state control, with talks ongoing with six armed factions. Kirkuk Power Crisis: Protests erupted in Kirkuk over fuel shortages affecting private electricity generators, with kerosene prices spiking. Trade & Currency Push: Iran’s parliament speaker Ghalibaf urged Iraq and Iran to use national currencies in bilateral trade to reduce reliance on the U.S. dollar. Arbitration/Exports Logistics: Iraq and Türkiye agreed to defer a $1.471B arbitration settlement, with payment options linked to Iraqi crude exports through the Iraq-Türkiye pipeline. Local Business/Football: FIFA lifted Najaf FC’s registration ban after payments were cleared, allowing the club to resume activity.

Iraq Oil Exports: Iraq is pushing to keep crude flowing despite Hormuz disruptions, securing alternative routes and activating border crossings as Prime Minister Ali al-Zaidi said exports are averaging about 2 million bpd since early August and July shipments hit around 49 million barrels. OPEC Output Push: Al-Zaidi also said Iraq aims to raise its OPEC production quota to 8–10 million bpd within six years, including talks to boost the quota via a delegation to Saudi Arabia. Trade Diversification: Baghdad is working to expand exports through Türkiye’s Ceyhan port and also develop Syria’s Baniyas and Jordan’s Aqaba routes. Anti-Corruption & Pensions: Iraq’s Integrity Commission has started auditing pensioners’ files by cross-checking National Board of Pensions data with electronic payment records to recover improper payments. Arms Under State Control: Asaib Ahl al-Haq reportedly handed over weapons (including drones without munitions) to Iraqi state authorities as part of PMF integration steps. Sanctions & Currency Talks: Iran’s parliament speaker Mohammad Bagher Ghalibaf urged Iraq and Iran to trade in national currencies to reduce reliance on the US dollar amid tougher US economic pressure. Oil Market Impact: Global prices held near recent highs as the US-Iran standoff keeps supply tight, while Iranian crude offers to China reportedly fell sharply under the US blockade.

Telecom Crackdown in Baghdad: Iraq’s Communications and Media Commission shut down Korek Telecom’s Baghdad headquarters and three sales centers, coordinating with the National Security Service, after the operator rejected the regulator’s actions and accused it of arbitrariness. Digital Transformation Watch: A new look at Iraq’s AI push says the country is adopting chatbots and digital services faster than its power, data systems, and institutional coordination can support—raising the stakes for public-sector modernization. Housing Finance Relief: Prime Minister Ali al-Zaidi intervened to restart Bismayah apartment loans via Rafidain Bank, after years of delays, with the NIC also committing to issue property deeds for eligible buyers. Currency Update: The US dollar rose in Baghdad to about 1,542.5 IQD and stayed steady in Erbil around 1,541–1,540.5 IQD. Regional Trade Pressure: Trump’s “economic D-day” threats against Iran put major partners—including China, UAE, Turkey, and potentially Iraq—on notice, with sanctions risk tied to any “lifeline” to Tehran. Oil Supply Routes: Iraq is pushing alternate oil export routes beyond Hormuz as shipping and energy flows stay under strain. Parliament Speaker Clash: Iraq’s parliament speaker traded barbs with Iran’s counterpart over Gulf naming, while both sides also discussed Hormuz export access and regional security.

Electricity Finance Talks: Iraq and the World Bank met to set priorities for a new electricity-sector loan, focusing on transmission bottlenecks, grid efficiency, and power delivery to demand centers, with the Gulf interconnection project to Basra still delayed. Anti-Corruption Crackdown: Iraq’s Integrity Commission sentenced former deputy culture minister Sarbast Omar Hassan to six years in absentia over the stalled “Nimrud Treasure” exhibition contract with a Danish firm, while Baghdad also moved to temporarily replace a Baghdad electricity distribution chief amid corruption allegations. Oil Exports Watch: Nine oil tankers are waiting at Basra port to load crude, highlighting how shipping constraints remain a live issue for Iraq’s main export outlet. Humanitarian Safety: On World Humanitarian Day, the UN urged stronger protection and accountability for aid workers facing escalating risks, including attacks in conflict zones. Iran Sanctions Pressure: Iran’s central bank chief said oil exports have fallen to zero under war and sanctions, while the US escalated threats of “economic warfare” against any country aiding Iran—an environment that keeps regional trade and Iraq’s energy flows under pressure. Telecom Dispute: Korek Telecom’s CEO rejected Baghdad’s verification-related actions as “illegal and baseless,” warning of an economic and security campaign against the Kurdistan Region.

Hormuz & Iraq-Iran Talks: Iraq’s Shiite Coordination Framework discussed keeping Iraqi oil exports flowing through the Strait of Hormuz with Iranian Parliament Speaker Mohammad Bagher Ghalibaf, alongside concerns over Iranian attacks on the Kurdistan Region. Anti-Corruption Push: Iraq’s Integrity Commission arrested Babil municipal officials tied to alleged forged receipts and misuse of public funds, while separate Babil cases saw the director of Al-Talia Municipality detained. Asset Recovery: An international team is reportedly preparing a new list of suspected corruption and money-smuggling figures, including former prime ministers and lawmakers, as part of Iraq’s wider Dawn Crackdown. Weapons-to-State Plan: Iraq’s national security adviser said the weapons-restriction program (deadline end-September) is meant to improve security and attract international investment. Digital Access Warning: Kurdistan’s Korek Telecom users were told by Iraq’s Communications and Media Commission to add alternative numbers to avoid losing verification access if messages stop. Security & Finance: Baghdad’s Federal Police seized $2M+ in counterfeit currency in two operations.

Hormuz & Oil Exports: Iraq’s cabinet approved a three-month mechanism to export crude starting Sept. 1, using local and international firms and multiple outlets as Hormuz shipping stays disrupted; the plan includes buying crude at the lower of SOMO or budget price with a 30% discount and authorizes new transport routes. Energy Markets: Oil prices climbed for a fourth straight day as conflicting US-Iran claims keep Strait of Hormuz uncertainty elevated, with shipping volumes still far below normal. Diplomacy in Baghdad: Iran’s parliament speaker Mohammad Bagher Ghalibaf met Iraqi leaders and urged diplomacy and regional cooperation, while Iraq pressed for safeguards for Hormuz oil exports amid rising disarmament tensions. Security & Regional Stakes: NATO said it is prepared to defend allies amid reports Iran is weighing wider retaliation options, including potential strikes beyond the Middle East. Banking/Trade Finance: EBRD approved up to $75m in trade finance for Iraq’s Al Mansour Bank to expand cross-border financing access. Corruption Watch: Iraq’s Martyrs Foundation said audits found over 22,000 forged beneficiary files tied to about 3.2T IQD in illicit compensation payouts. Crypto in the Gulf: Coinbase secured an Abu Dhabi hub license to arrange tokenized securities deals under ADGM rules.

Oil Export Diversification: Iraq’s cabinet approved a three-month temporary framework for crude exports starting Sept. 1, using a network of specialized international and local companies to add redundancy to routes amid Hormuz-linked disruption risk. Trade Finance Boost: The EBRD extended a $75mn trade finance line to Al Mansour Bank for Investment to expand cross-border financing and support Iraqi importers/exporters, including SMEs. Regional Shipping Shock: Authorities said 51 crew were rescued after an attack on two oil tankers off Iraq; at least one crew member died, with Iran’s IRGC claiming responsibility. Hormuz Pressure on Costs: Gas prices are rising again, with crude above $80 since Aug. 10 and the Strait of Hormuz closure cited as a key driver of higher pump prices. Iraq-Iran Economic Talks: Iranian economists urged broader economic partnership with Iraq, focusing on production, investment, and job creation, while Iran’s chief negotiator linked any Hormuz reopening to U.S. commitments. Militia Weapons Talks: Iraq’s ruling Shiite bloc is set to take over negotiations on militia disarmament as some Iran-aligned factions reject the process until U.S. withdrawal is complete.

Hormuz & Iraq Oil Exports: Iran’s parliament speaker Mohammad Bagher Ghalibaf said the Strait of Hormuz won’t reopen until the US lifts the blockade, sanctions and unfreezes assets, as he heads to Baghdad for talks that include safe transit for Iraqi crude and how to handle non-state armed groups. Energy Routes & Costs: With Hormuz traffic disrupted, analysts say bypass projects and new oil routes take years and billions, keeping pressure on global prices and Iraq’s export options. Iraq Finance & Currency: Iraq is again debating a long-stalled plan to “delete zeros” from the dinar amid a budget squeeze worsened by reduced oil revenues. Anti-Corruption & State Control: Iraq’s disarmament push continues as PMF-linked Harakat al-Nujaba releases an intelligence chief after detention, while Baghdad also probes drone attacks on Kurdistan leadership. Agriculture Payments: Farmers protested in Baghdad demanding overdue wheat dues, with the cabinet approving a plan to settle payments via the next budget draft. Regional Trade Logistics: Gulftainer plans to expand Khorfakkan capacity as shipping reroutes around Hormuz, while Jordan reports rising electricity exports to Iraq.

Iraq-Iran Banking Reset: Iran’s central bank chief Abdolnasser Hemmati met Iraqi counterparts in Baghdad to ease banking barriers, speed access to funds held in Iraqi banks, and simplify procedures for Iranian traders and exporters. Anti-Corruption & Payroll Crackdown: Iraq’s Ministry of Electricity said it found 549 “ghost employees” and accused collusion involving banks; Rasheed Bank denied any role beyond processing salary payments from official payroll lists. Fuel Supply Management: Iraq’s Oil Ministry dismissed a Baghdad fuel distribution director over administrative violations, with an acting replacement expected to keep supplies flowing. Provincial Power Fight: Iraqi lawmakers asked parliament to freeze provincial councils and budgets, reviving decentralization tensions and raising legal concerns given the councils’ elected term. Oil Route Diversification: Reuters reports Iraq’s planned Iraq-Syria crude pipeline to bypass Hormuz could take about four years and cost at least $15bn, as Hormuz disruption reshapes export planning. Regional Security Tensions: Iran condemned drone attacks on Kurdistan Region PM Masrour Barzani’s office, warning against “false-flag” moves and urging vigilance. Sports Despite Strain: Iraq will send five boxers to a Kazakhstan tournament to prepare for the 2026 Asian Games despite severe financial constraints.

Kurdistan Security: Iran launched two Hadid-110 drones into Iraq’s Kurdistan Region, hitting Prime Minister Masrour Barzani’s private office and the home of a senior security intelligence official in Erbil, with no casualties reported. Hormuz Deadlock: The 60-day US-Iran MoU deadline expired without a deal as both sides blame each other over the Strait of Hormuz, sanctions, and navigation; Iran says its armed forces remain ready. Iraq Finance Response: Iraq’s finance minister said the Hormuz crisis is already hitting the economy and pledged steps to raise non-oil revenue and introduce Iraq’s first performance-based budget. Oil Market Workarounds: Reports say covert “shuttle” shipments and transshipment schemes are moving millions of barrels daily through/around Hormuz, helping cap price spikes—while Iraq remains among the hardest hit exporters. Tourism Push: Iraq plans to grow tourism to 10% of GDP by 2035, targeting 10 million visitors a year, 1.5 million jobs, and major heritage site upgrades. Anti-Corruption Courts: Iraq’s Integrity Commission reported prison sentences and asset seizures in major graft cases, including a former Nasiriyah municipality official jailed for bribery and land fraud. Currency Watch: Parallel dinar rates in Baghdad, Erbil, and Basra rose to about 154,500 IQD per $100, widening the gap versus the Central Bank’s official rate. Regional Infrastructure Plan: Reuters says an Iraq-Syria oil pipeline to bypass Hormuz could take about four years and cost at least $15bn, with feasibility work underway. Energy Security Context: Iraq’s electricity crisis and public-sector wage burden remain central to social stability as unemployment and fiscal strain drive unrest, including graduate job protests that disrupted the Babil-Baghdad highway.

Iraq’s Budget Overhaul: Iraq is preparing to pass its first performance-based budget, tying spending to measurable results as the economy absorbs pressure from the Strait of Hormuz disruption. Air Defense Modernization: Prime Minister Ali al-Zaidi chaired plans to expand Iraq’s air defense capabilities, including contracts with foreign firms for advanced systems to better monitor and protect Iraqi airspace. EU Openness Push: Al-Zaidi also met Italy’s ambassador, reiterating Iraq’s goal of deeper economic openness with EU countries. Anti-Corruption Crackdown: An Iraqi court sentenced former Saladin Governor Ammar Jabr to seven years for illicit enrichment, as authorities continue pursuing financial corruption cases. Electricity Relief in Kurdistan: In the Kurdistan Region, more than 170,000 beneficiaries used a legacy-debt discount under the Runaki electricity project, with discounts running until Sept. 10. Trade & Finance Links: Iran’s central bank governor said he will tackle barriers for Iranian businesses in Iraq, including customs tariffs and unpaid dues, to boost bilateral trade. Oil-Route Pressure: With Hormuz still constrained, reports say covert “dark” shipments and ship-to-ship transfers are helping keep global prices steadier than feared. Consumer Tech Hit: Smartphone shipments across the Middle East (excluding Turkey) fell 19% in Q2 2026, with Iraq down 36% year on year.

Iraq Anti-Corruption Push: Iraq’s Supreme Judicial Council says it seized about $26m in cash, 60kg of gold and seven vehicles linked to former Deputy Oil Minister Adnan Al-Jumaili, as investigations into refinery waste and embezzlement continue. Oil Exports Recovery: Iraq’s daily oil exports since early August have rebounded to around 2 million bpd, the highest since the Feb. start of the Iran war, with exports totaling roughly 26m barrels in the first two weeks. Judiciary Asset Seizures: A separate court update in the same case confirms $20.34m plus 200m IQD and 60kg of gold were recovered, with legal steps ongoing against other suspects. Safety Enforcement in Kurdistan: Erbil says it has shut 900 non-compliant commercial buildings since the start of 2026 for failing fire and safety standards, citing flammable materials and electrical short-circuit risks. Regional Energy Pressure: With Hormuz under strain, Türkiye says Ceyhan could be turned into a “Rotterdam,” highlighting the Kirkuk–Ceyhan route and renewed transit arrangements to move Iraqi crude. Hormuz Standoff: Iran rejects Trump’s claim it will declare Hormuz U.S. territory, saying the strait “will remain Iranian,” as shipping risks keep rising.

Hormuz Flashpoint: Iran rejected Donald Trump’s claim it will soon declare the Strait of Hormuz a U.S. territory, saying the waterway “will remain Iranian,” as the U.S. and Iran’s 60-day ceasefire deadline nears and CENTCOM redirected more than 60 ships amid continued tanker incidents. UAE Blames Tehran: The UAE said an ADNOC-linked vessel was attacked in Hormuz and called it “piracy” by Iran’s Revolutionary Guard Corps, while Iran keeps signaling it won’t reopen the strait without sanctions relief and an end to attacks. Iraq Power Plan: Iraq’s Prime Minister Ali al-Zaidi ordered a push to double electricity production and distribution capacity in 2027, targeting 30,000MW domestic capacity plus imports, as demand peaks near 55,000MW. Oil & Trade Pressure: Kuwait warned Hormuz disruptions are the toughest hit to its oil sector since 1990, highlighting how the region’s shipping bottleneck keeps raising costs and uncertainty for Gulf crude exports. Defense Budget Talk: U.S. Defense Secretary Pete Hegseth urged Congress to approve a $1.5tn 2027 military budget, underscoring how the wider conflict climate is shaping spending priorities.