Overview
- The United States has resumed transfers of Iraqi oil revenue held at the Federal Reserve in New York, a move that restores a major funding stream for Baghdad ahead of Prime Minister Ali al-Zaidi’s Washington visit.
- Zaidi arrives in Washington pitching a pro-business agenda and is expected to advance energy and infrastructure deals with US firms, including plans tied to Chevron, the Akkas gas field, and the Kirkuk-Baniyas pipeline.
- Zaidi set a September 30 deadline for militias to hand over heavy weapons to the state, but major Iran-aligned groups such as Kataib Hezbollah have publicly refused to disarm and experts say compliance has been largely cosmetic.
- Washington has used economic leverage before, including an April freeze of dollar shipments and public pressure on Iraq’s leadership choice, as part of a broader US effort to curb Tehran’s influence in Iraq and the Gulf.
- The Popular Mobilisation Forces include more than 150,000 fighters who are partially integrated into state payrolls and patronage networks; their size and state ties complicate disarmament and raise risks to Iraqi security and regional relations.