AGP Executive Report

Kurdistan-Baghdad Financial Talks: A KRG delegation led by Omed Sabah is set to visit Baghdad within 48 hours to discuss Erbil’s customs and trade disputes, including ASYCUDA implementation and the dollar embargo on Kurdish businessmen—while Baghdad is also expected to send its own team to Erbil. World Cup Entry Scrutiny: Iraq’s striker Aymen Hussein was detained and questioned for nearly seven hours at Chicago O’Hare before being allowed in; the team’s photographer Talal Salah was held over 10 hours and denied entry, with phones searched amid heightened US-Iran tensions. Oil Transit Denial: Baghdad rejected claims it paid Iran for oil tankers to pass through the Strait of Hormuz, saying exports continue under legal routes and warning against unverified market rumors. Regional Security & Media Clash: Gulf and Saudi-linked outlets frame the US-Iran crisis around energy and shipping risks, while Israeli and Iran-aligned media emphasize escalation and leverage—highlighting how the same conflict is being sold in sharply different political narratives. Safety Crackdown: Iraq’s civil defense says it closed about 11,000 buildings over the past year for fire and safety violations, with Anbar among the hardest hit.

Iraq’s Solar Pivot: With blackouts and generator costs rising, Iraqis are increasingly looking at home solar as grid power can be as low as 8–12 hours a day, especially after Iran cut gas supplies. World Cup Focus: Iraq’s return to the FIFA World Cup after 1986 is highlighted in Group I previews alongside France, Senegal and Norway, with Iraq training in West Virginia ahead of matches in Boston, Philadelphia and Toronto. Iran-US Money Standoff: Iran’s Khamenei adviser says a potential deal depends on the Trump administration releasing $24 billion in frozen Iranian assets, warning talks are at a deadlock. Sanctions Pressure on Fuel Trade: OFAC sanctioned a network smuggling Iranian LPG disguised as Omani fuel, using UAE/China front firms and shadow fleet tactics to evade US sanctions. Kurdistan-Turkey Talks: Kurdistan Region President Barzani met Turkey’s ambassador to stress Erbil-Baghdad dialogue, security stability, and regional de-escalation. Regional Security Claims: Reports say Israel deployed special military and intelligence units in Azerbaijan during the Iran war, with alleged links to covert hubs also including Iraq.

PMF Reorganization: Iraq’s Popular Mobilization Forces chief Faleh al-Fayyadh says a new committee has started work to achieve “complete disengagement” of the PMF from political factions, as Iraq moves to place weapons under state control. Fuel Crisis Oversight: Iraq’s Integrity Commission launched surprise field teams in Baghdad to monitor gasoline distribution, check depot deliveries against sales, and curb smuggling amid shortages. Regional Security & Travel: The U.S. Embassy in Jerusalem issued a security alert, keeping Iraq at Level 4 travel advisory due to “high tensions,” while warning Americans to know bomb-shelter locations. Iran-US Asset Standoff: Iran’s adviser to Supreme Leader Khamenei says talks are deadlocked unless Washington releases $24 billion in frozen assets, warning of a “dark corridor” if fighting resumes. Nuclear Safety Alarm: Qatar condemned the reported drone attack on the UAE’s Barakah nuclear plant, calling it a violation of international law and nuclear safety principles. World Bank Roads Deal: The World Bank approved a $900m package to upgrade Iraq and Kurdistan Region road corridors linking Baghdad to Turkey and Syria/Jordan. Diplomatic/Arms Control Debate: A Baghdad preacher backed restricting weapons to the state, echoing government steps to integrate armed groups into official structures.

Iraq’s Arms-Under-State Push: Iraq’s government is moving to centralize control of weapons under state authority, with coordination frameworks and committees aimed at integrating armed groups and managing disarmament—though hardliners warn the process could stall. Kurdistan–Baghdad Oil Talks: Erbil and Baghdad are pressing ahead on oil export arrangements and broader coordination, including efforts to keep production moving through regional routes. Regional Security Fallout: The wider Iran–US confrontation keeps tightening the screws across the Gulf, with shipping and energy disruptions feeding into regional instability that Iraq cannot ignore. Oil and Trade Pressure: Iran’s crude exports reportedly hit a six-year low amid blockade and Strait of Hormuz risks, underscoring how quickly regional conflict reshapes energy flows. World Cup Spotlight on Iraq: Iraq’s World Cup build-up continues after a notable Spain draw in a warm-up, keeping attention on Iraq’s return to the tournament after decades. Diplomacy and Legal Cases: A renewed look at Iraq travel-ban issues follows the continued restrictions on Robert Pether after his release.

Kurdistan–Turkey Diplomacy: KRG President Nechirvan Barzani and Prime Minister Masrour Barzani met Turkey’s Ambassador Anıl Bora İnan, stressing stronger Erbil–Ankara ties, dialogue to ease internal disputes, and continued oil exports via Turkey’s Ceyhan port. Federal–Erbil Relations: Barzani said Baghdad wants to “turn a new page,” with talks focused on constitutional rights, financial entitlements, and boosting production to cushion Iraq’s economic strain. Arms Control Politics: Iraq’s drive to centralize weapons under state authority is gaining momentum as some Iran-linked factions move toward state control, but hardliners warn they won’t disarm unless foreign troops leave—raising uncertainty for Prime Minister Ali al-Zaidi’s plan. Security & Travel Fallout: A U.S. embassy alert urged Americans across the region to stay cautious as tensions with Iran persist, while Bahrain ordered travel agencies to halt promotions to Iran and Iraq. Infrastructure Push: Iraq is set to begin implementing the $17bn Development Road project, aiming to connect Basra to Turkey and position Iraq as a transit hub.

Arms Control Showdown in Baghdad: Iraqi factions are signaling they may resist the government’s push to place weapons under state control, even as PM Ali al-Zaidi moves to restructure the Popular Mobilization Forces and form a joint committee with pro-Iran groups to implement disarmament steps. U.S. Diplomatic Backing: U.S. envoy Tom Barrack publicly praised Iraq’s efforts to integrate armed groups into state institutions and return weapons to the government. Security Reality Check: Observers in Baghdad warn the shift may be more about recalibrating militia power than ending parallel security structures. Regional Pressure and Fallout: The broader Iran-U.S. conflict continues to spill into Iraq’s neighborhood, with reports of missile and drone activity affecting Gulf states and raising stakes for Baghdad’s internal security agenda. Local Governance Angle: The debate over state control of arms is now tied directly to appointments and institutional authority inside Iraq’s security system.

Militia Disarmament Push: Iraqi PM Ali al-Zaidi moves to tighten state control over weapons, forming a joint committee to set procedures for disengaging from the PMF and consolidating arms under government authority within two days, as Iran-backed factions signal they may sever PMF ties. State Arms Conditions: Saraya Awliya al-Dam says it will not disarm unless Baghdad guarantees full sovereignty, ends foreign military presence, and cuts financial/economic dependence—adding demands for air-defense upgrades. Kurdistan Oil Restart: Baghdad orders oil companies in Iraqi Kurdistan to resume operations from Thursday after drone-linked disruptions, aiming to offset Hormuz-linked revenue losses. Ceyhan Export Expansion: The cabinet approves plans to more than triple crude exports via the Turkey pipeline to Ceyhan, from about 220,000 bpd to up to 770,000 bpd in two and a half months. Korek Telecom Legal Fight: Iraq’s CMC cancels Korek Telecom’s contract and suspends operations; the company’s CEO calls the decision “unlawful” and vows legal action. Diplomatic Fallout: Kuwait declares two Iranian diplomats persona non grata and cuts embassy staff after missile/drone attacks, while Iran warns of retaliation. Regional War Diplomacy: A senior Iranian lawmaker says any US deal must include an end to regional war, especially Lebanon.

Militia Integration in Iraq: Muqtada al-Sadr keeps reshaping his armed wing—freezing Peace Brigades activity in Basra and Wasit earlier this year, then reversing course—while new reporting frames the latest “dismantling” as a political recalibration rather than a true break. Arms Under State Control: Multiple pro-Iran Iraqi factions say they will hand weapons to authorities, but the process remains contested as Baghdad pushes for tighter state control. Regional Security Shock: Iran-linked missile and drone attacks across the Gulf have spilled into Iraq’s neighborhood, with reports of Iranian strikes hitting a Kurdish separatist base near Erbil. US-Iran Escalation Near Iraq: US CENTCOM says it carried out “self-defense” strikes after Iranian attacks, including action near Qeshm Island, as Kuwait and Bahrain faced missile alerts and oil prices jumped. Fatal Training Incident in Kurdistan: A joint US-British training accident at Erbil Airbase killed both soldiers, underscoring how quickly regional tensions can intersect with Iraq’s security cooperation. Anti-Corruption in Baghdad: Iraq seized $10m in cash and dozens of properties tied to corruption allegations involving the Oil Ministry.

Militia Disarmament Push: Two Iran-backed Iraqi militias, Asaib Ahl al-Haq and the Imam Ali Brigades, announced they will begin handing weapons to the state and leaving the PMF, echoing Muqtada al-Sadr’s earlier move and aligning with Prime Minister Ali al-Zaidi’s push for a state monopoly on arms. Anti-Corruption Drive: Iraq’s Federal Integrity Commission says it uncovered nearly 2 billion dinars in embezzlement in Diyala’s electricity directorate, dismissing four senior officials. US-Iran-Iraq Maritime Tensions: Iran’s IRGC claimed it hit a ship linked to the US/Israel near Iraq’s Umm Qasr, while Iraqi investigators questioned whether it was a deliberate strike, after UKMTO reported a major explosion. Regional Security Measures: Bahrain banned citizens from traveling to Iran and Iraq amid ongoing regional tensions. Diplomacy Under Strain: Trump said US-Iran talks are continuing “at a rapid pace” despite reports of pauses tied to Lebanon, as Israel-Hezbollah fighting continues. Christian Leadership: A new Chaldean Catholic patriarch installed in Baghdad pledged to strengthen Iraq’s Christian community. Training Fatalities: US and British authorities confirmed two soldiers died during a training exercise at Erbil air base.

Armed Groups & State Authority: Iraq’s Coordination Framework backed a push to restrict weapons to the state and cut the PMF’s ties to political and social frameworks, as Prime Minister Ali al-Zaidi’s government presses for tighter control of armed actors. Border & Trade: Iran’s Jilat border crossing with Iraq’s Maysan province has entered an operational phase, with infrastructure work underway and partial opening possible during Arbaeen, aiming to boost trade and pilgrim movement. Security & Military Deaths: One U.S. soldier and one British service member died in a training accident at Erbil Air Base; investigations are ongoing and identities are being withheld pending next-of-kin notification. Regional War Fallout: Satellite-based reporting says Iranian strikes damaged or destroyed dozens of U.S. assets across multiple countries including Iraq, while U.S.-Iran talks remain fragile amid Lebanon-linked escalation. Local Economy & Cash Use: Exchange and money-transfer offices continue expanding as most of Iraq’s money supply stays outside banks, highlighting persistent cash reliance despite rising financial inclusion. World Cup Spotlight: Iraq’s World Cup return after 40 years keeps momentum, with Ali Al Hamadi highlighted as a key figure in qualification.

Iraq’s Militia Integration: Muqtada al-Sadr announced the dissolution of Saraya al-Salam and ordered its full attachment to the Iraqi state, with a handover process aimed to be completed by Eid al-Ghadir (June 4), as Baghdad weighs how to integrate armed factions under government authority. Anti-Corruption Push: Iraq’s prime minister moved to form an anti-corruption council after revealing he was offered a $200 million bribe, while lawmakers and officials debate whether the new body is legal and how it will refer cases to court. Regional Security Shockwaves: Iran says it has halted indirect talks with the U.S. over Israel’s Lebanon offensive, warning ceasefire violations could open “new fronts,” while U.S. strikes on Iranian radar/drone sites and missile/drone exchanges involving Kuwait and incidents near Iraq’s Umm Qasr keep regional tensions high. Trade and Infrastructure: TMG secured an investment licence for a major $18.8bn Baghdad mixed-use community with tens of thousands of homes, and a cargo incident in the Gulf near Iraq’s coast highlights how shipping routes remain exposed amid the Iran-Israel-U.S. standoff. UK-Iraq Security Presence: The UK confirmed a British Army soldier died in a northern Iraq training accident, underscoring ongoing coalition training and advisory operations.

Armed Factions vs. State Control: Iraq’s PM Ali Al-Zaidi received a US message warning that armed factions should not take part in the next government even if they surrender weapons, raising fresh friction inside cabinet-formation talks. Shiite Disarmament Pressure: Political analyst Rafid Al-Atwani says Muqtada al-Sadr dissolved ties with Saraya Al-Salam to ease international pressure, with discussion of eventually integrating remaining members into state security structures. Anti-Corruption Clash: A new Iraqi anti-corruption council was branded “illegal” by an MP, who argues it violates constitutional rules for independent oversight bodies and blurs roles by placing the PM at the top. US Veto on Cabinet Seats: Another report says Washington is effectively blocking armed figures from ministerial or senior posts, creating a “new US veto” dynamic. Public Health Measures: Wasit Governor Ali Salimoun ordered border closures to livestock unless veterinary requirements are met to curb CCHF spread. Legal Probe of Online Giveaways: A Nineveh content creator was arrested over alleged financing behind social media prizes. Fuel Quality Complaints: Mechanics across Iraq link poor gasoline quality to rising vehicle malfunctions and repair costs.

US-Iraq Diplomacy: Iraqi PM Ali Al-Zaidi met US Chargé d’Affaires Joshua Harris, reaffirming the Strategic Framework Agreement and cooperation on security, trade, energy, and education as Washington also pressed Baghdad over armed factions’ role in the next government. US Envoy Overhaul: President Trump named Tom Barrack—still US ambassador to Türkiye—as Special Presidential Envoy for both Iraq and Syria, expanding his diplomatic mandate after his Syria envoy term ended. Anti-Corruption Push: In Karbala, a provincial council member alleged financial and legal corruption tied to public projects and state land allocations, urging an investigation; meanwhile the PM ordered a new Supreme Sovereign Council for Integrity, Oversight, and Recovery of Public Funds. Press Freedom Under Pressure: Iraq’s CMC suspended TV programs, fined outlets, and restricted media figures, with a press freedom group calling the actions unconstitutional and urging safeguards for CMC independence. Security & Justice: A Dhi Qar court sentenced an Al-Hout prison employee to 15 years for aiding terrorist inmates by smuggling prohibited items, while Iraqi forces arrested four in an international Lyrica trafficking operation. Health & Services: Mosul’s Specialized Oncology and Nuclear Medicine Hospital began receiving cancer patients, with 100 beds and advanced treatment equipment. Trade Disruption: A shipment of 44,000 tons of US rice reached Jordan’s Aqaba Port for Iraq despite regional shipping disruptions tied to the Iran war.

State-Armed Forces Integration: Iraqi PM Ali al-Zaidi met Muqtada al-Sadr’s representatives to set up a committee to integrate Saraya al-Salam into Iraq’s security forces and move its weapons under state control, with the handover process tied to Eid al-Ghadir. Militia Standoff With US Pressure: Kataib Hezbollah vowed to keep its “militant action” despite Baghdad’s push to restrict arms to the state, while offering to help other groups transfer and store weapons—without agreeing to disarm under foreign pressure. UN Nuclear Safety Warning: UN atomic chief Rafael Grossi warned that attacks on nuclear power plants are becoming a dangerous “pattern,” citing a drone strike from Iraq that hit a generator at Abu Dhabi’s Barakah plant and urging stronger protection for nuclear sites. US-Iran Financial Pressure: The US said it seized about $1 billion in Iranian-linked crypto as part of a wider campaign to cut Tehran’s funding channels, including actions tied to Iraqi officials and Iran-backed militias operating in Iraq. Diplomatic Personnel Shift: US Secretary of State Marco Rubio said special envoy Tom Barrack’s formal Syria mandate is expiring, but he will keep a leading role covering Syria and Iraq policy. Iraq World Cup Prep: Iraq opened its 2026 World Cup warm-up with a 1-0 win over Andorra, with Ali Yusuf scoring, as the team prepares for travel to the US and a final friendly vs Spain.

Armed Factions Under Pressure: Muqtada al-Sadr’s move to place Saraya al-Salam units under the armed forces commander-in-chief is boosting Baghdad’s push to bring weapons under state control, with Prime Minister Ali al-Zaidi urging other armed wings to dissolve and integrate into official institutions. State Authority & Restructuring: A PSM committee began implementing Saraya al-Salam’s separation process within Sadr’s one-week deadline, while the government links the overhaul to wider efforts to consolidate security decisions and curb partisan military assets. US-Iraq Filekeeping: US Secretary of State Marco Rubio confirmed that envoy Tom Barrack will keep overseeing key Iraq and Syria files even as his Syria envoy title expires. Budget Strain From Strait Closures: Iraq’s 2026 budget planning is getting harder as oil export volumes fall sharply due to Strait of Hormuz restrictions, forcing Baghdad to scramble for alternative routes and manage internal financial stability. Security Concerns: The Pentagon warned senators that adversaries may exploit commercial location data to target US service members in the Middle East. Church Leadership in Baghdad: A new head of the Chaldean Catholic Church took office in Baghdad, marking another political-religious milestone.

Iraq Oil Leadership: Iraq’s parliament approved oil industry veteran Bassim Mohammed Khudair as the new Minister of Oil, replacing Hayan Abdul Ghani, as Baghdad tries to manage export pressure amid Strait of Hormuz disruptions. Militias Under State Control: Prime Minister Ali al-Zaidi urged armed factions to disarm and join state institutions, following moves tied to Muqtada al-Sadr’s integration of Saraya al-Salam into Iraqi state forces. Kurdish Diplomacy Push: American Friends of Kurdistan founder Diliman Abdulkader urged the US to appoint a special envoy for Kurdish affairs to coordinate policy across Iraq, Syria, Turkey and Iran. Regional Ceasefire Watch: US-Iran talks are reportedly advancing a 60-day ceasefire extension tied to Strait of Hormuz access and nuclear negotiations, though details and confirmation remain contested. Human Toll in the Region: UNICEF said Israeli attacks in Lebanon have killed or injured an average of 11 children per day over the past week, underscoring the wider humanitarian strain affecting Iraq’s neighborhood. Cross-border Worker Deaths: Bangladesh’s foreign ministry officials received the body of a Bangladeshi migrant worker killed in an Iraq missile strike, with condolences and financial assistance delivered to the family.