Iraq Oil Report

Rep. Edward Markey has demanded answers to 12 questions from Secretary of State Condoleezza Rice. In a letter Tuesday, he said the Hunt Oil-Kurdistan Regional Government deal is sketchy and hurts the U.S. agenda in Iraq.

Bob Davis, Chip Cummins and Neil King Jr. report for the Wall Street Journal that Hunt CEO Ray Hunt denies any discussions on the deal with the U.S. government, despite claims by State it advised Hunt not to sign a deal with the KRG.

Meanwhile both the State Department and White House maintain U.S. efforts are at pressing Baghdad to pass national legislation.

Bob Fryklund of the global consulting firm IHS – owner of CERA – says the earlier firms sign with the KRG, the better the fields they’ll get. He says the independent firms are the ones mostly courting the KRG, while the bigger firms – national and international oil companies – are waiting for Baghdad.

Iraq’s Economy

John Dizard reports for the Financial Times that Iraq’s bonds market may be a bright light for a struggling economy.

Society, Security and Politics

In Iraq’s south, where intra-Shiite violence has so far taken a back seat to Sunni-Shiite fighting in the rest of the country (minus the KRG), the oil-rich area could be the next big problem for U.S. forces there. Ken Fireman reports for Bloomberg military and private analysts differ on the extent of the problem. But it is real, and will be a further drain both on coalition troops and on Baghdad’s ability to govern.

The U.S. military tactic of bringing Sunnis tribesman into the security forces fold is putting them at odds with the Shiite majority. Joshua Partlow reports for the Washington Post they are accused of allegiances to al-Qaida in Iraq.