TNT Friday Iraq News Posted by Tishwash

TNT:

Tishwash:  Why hasn’t an oil and gas law been enacted? A former minister reveals the reasons.

Former MP and Minister Zuhair al-Jalabi revealed on Thursday the reasons why political parties have not moved forward with enacting the oil and gas law, despite nearly two decades having passed since attempts to pass this crucial legislation.

Al-Jalabi told Al-Maalouma, “The issue of annexing land from Nineveh Governorate to the Kurdistan Region is practically over, especially since the administrative boundaries of the governorates are defined within the Ministry of Planning and cannot be changed except by a decision from the Council of Representatives through a vote on a new administrative map of the governorates.”

He added, “Regarding the oil and gas law, despite talk of obstacles related to shared lands and the ownership of oil fields, whether by Baghdad or the region, the problem is much larger because many countries are working to prevent the passage of such a law.”

He explained that “the countries seeking to prevent the law’s passage benefit from oil smuggling, the rampant corruption in the relevant ministry, and the chaos associated with this issue. Some countries are striving to ensure the continuation of this scenario to guarantee their own interests.” ink

Tishwash:  Romanowski: The end of the “coalition” in Iraq does not mean Washington’s absence from the security file.

A former US diplomat who served as her country’s ambassador to Baghdad warned of the dangers of leaving a security vacuum in Iraq as the international coalition’s military mission nears its end, calling for the establishment of alternative security arrangements to preserve stability in the country and the region.

Alina Romanowski, speaking at a panel discussion hosted by the Atlantic Council in Washington, said that the commitment to completing the mission by the end of September was a pre-agreed step, stressing that Washington’s priority was and remains ensuring an orderly transition that allows for building a bilateral security relationship with Baghdad, away from an improved withdrawal.

The former ambassador considered that the most challenges facing the Iraqi government lie in the issue of armed factions, as efforts to restrict weapons to the state are met with the prominent refusal of some of these parties to engage in any reform of the security system.

She warned that the expansion of these factions’ attacks to include neighboring countries strikes at the heart of Baghdad’s declared desire to stay away from regional tension issues, making the security file directly linked to broader regional stability.

Romanowski stressed that reducing the American military presence does not mean a decline in the American commitment to Iraq, but rather a redirection of it towards intelligence support, training and counter-terrorism, considering that the stability of the security environment is a prerequisite for attracting investments and expanding economic cooperation between the two countries.

It is worth noting that Iraq and Washington agreed in September 2024 to end the mission of the international coalition within a phased plan, the first phase of which was completed in September 2025 with forces remaining in the Kurdistan Region to support operations in Syria, with the final phase to be completed by the end of September 2026.  link

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Tishwash:  US-led coalition forces have begun withdrawing from northern Iraq.

A minister in the Kurdistan region reported on Thursday that US-led international coalition forces have begun withdrawing from northern Iraq as the deadline for the end of their mission across the country approaches.

These forces had already completed their withdrawal from bases in other parts of Iraq in January, and their deployment is now limited to the autonomous Kurdistan region.

These forces are scheduled to complete their withdrawal from the entire country by September 30, under an agreement concluded between Baghdad and Washington in 2024.

Kurdistan Interior Minister Reber Ahmed told reporters, “Regarding the issue of the withdrawal of coalition forces from the Kurdistan Region or from Iraq in general, based on the existing agreement, these forces must leave by the end of September, and they have already begun doing so in earnest.”

He added, “They have also started in the Kurdistan Region, and those forces are being moved daily to other locations outside of Iraq.”

An Iraqi official confirmed to AFP that coalition forces have begun withdrawing from the region, and that their deployment is now limited to Erbil International Airport.

Coalition forces had left Syria earlier this year.  link

Tishwash:  No loans or advances… Government banks have no liquidity.

An informed source revealed on Thursday that most government banks have stopped granting loans and advances of all kinds, attributing this to the lack of financial allocations and the lack of sufficient liquidity in those banks .

The source told Shafaq News Agency that the decrease in the volume of deposits and the decline in liquidity levels have directly affected the ability of government banks to provide loans and advances, as well as investment loans allocated to finance projects and residential complexes in Baghdad and the provinces .

He added that the decline in banking liquidity has reduced the ability of banks to continue financing various credit and investment activities, which may affect the flow of financing and support for housing and development projects  link

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Tishwash:  US pressure mounts on Baghdad: Iraqi banks face the test of sanctions and Iranian funding.

The United States has placed Iraq before a new financial and political obligation, with escalating American pressure aimed at narrowing funding channels linked to Iran, at a time when Baghdad faces a double challenge of protecting its financial system from the repercussions of sanctions and maintaining its economic relationship with Washington.

According to Shafaq News Agency, the US State Department threatened a broad economic campaign to cut off funding lines to Tehran, demanding that the Iraqi government fully engage in pursuing illicit financial activities and preventing the use of the Iraqi financial system in transactions that may be subject to US sanctions.

The American position came in response to questions posed by Shafaq News to the State Department regarding the measures required to spare Iraq the repercussions of the sanctions, especially in light of Iraqi political warnings that the country is entering a sensitive financial situation that may be affected by any additional restrictions on foreign transfers or dollar flows.

According to what the agency quoted from a spokesman for the US State Department, Washington views the current stage as a new path in the relationship with Baghdad, based on strengthening the economic and security partnership, in parallel with demanding that Iraq prevent the use of its territory or financial institutions in activities that conflict with US policy towards Iran.

But the American message carried a more sensitive aspect on the financial level, as the spokesman linked the continuation of support and partnership with Iraq to the need to cooperate in confronting regional financing networks that Washington says contribute to providing financial resources to Tehran.

The report noted that the United States has begun a campaign called “Operation Economic Paragon” targeting individuals and entities accused of engaging in illegal financial transactions linked to Iran, including those who deal with Iranian banks or help transfer funds through external channels.

These developments reflect the magnitude of the pressures that the Iraqi banking sector may face in the coming period, especially since any expansion of US sanctions or restrictions may directly affect the ability of some banks and companies to carry out international transfers and obtain dollars, which makes the financial compliance file one of the most sensitive files facing the Central Bank of Iraq and the government.

According to Shafaq News, the US State Department called on the Iraqi government and the international community to support the new measures and hold accountable those involved in illicit financial operations, in a clear indication that Washington wants Baghdad to take practical steps to separate the movement of funds within Iraq from any networks subject to sanctions.

This comes at a time when political and banking concerns are growing within Iraq that continued violations or weak oversight procedures could lead to the expansion of US restrictions to include additional financial institutions, potentially putting the Iraqi economy under new pressure in the exchange market, foreign trade, and international transfers.

According to the report, the US Treasury Department announced the launch of a new campaign against Iran at the direction of US President Donald Trump, while Treasury Secretary Scott Bessent described the measures as a campaign targeting Iran and the entities that provide it with financial support and enabling power.

These messages present Baghdad with a delicate equation: tightening control over the movement of funds and transfers to ensure continued access to the global financial system, while at the same time avoiding any internal disturbances that may result from tightening restrictions on banks or trade.

As US pressure on Iran’s funding sources widens, the Iraqi banking system appears to be at the heart of the next phase, and Baghdad’s ability to demonstrate the effectiveness of its compliance, anti-money laundering, and sanctions financing systems will largely determine the extent of the pressure Iraq may face in the future  link