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Welcome to This Week in Iraq, your one-stop source for all of the most important Iraq news, curated by the editors of Iraq Oil Report. To sign up and receive this free newsletter in your inbox every week click here.
Top Stories
Iraq's nationwide crude production increased in January by just over 50,000 barrels per day (bpd), according to an Iraq Oil Report analysis based on data gathered independently from each field. The output growth came despite a significant reduction at Rumaila, Iraq's most prolific field, where a gas separation station had to be shut down for about 10 days for periodic maintenance. The temporary dip at Rumaila was more than offset by state-operated fields in Basra, which have functioned as the primary swing capacity within the Oil Ministry's portfolio as it seeks to manage compliance with OPEC-plus quotas. Read the full story here.
Iraq is making progress toward a goal of starting LNG imports in time for summertime spikes in electricity demand, that head of the country's ports company said. Farhan al-Fartousi, the director general of the General Company for Ports of Iraq (GCPI), the state-run company that oversees an array of operations that are integral to the country's oil sector, trade, and commerce, said the floating LNG terminal will be ready in early June. Read Fartousi's full interview with Iraq Oil Report here.
Politics
Iraqi politicians are still weighing the risks of U.S. opposition to Nouri al-Maliki's bid to return as prime minister. Several Iraqi and regional outlets report that U.S. officials have privately warned Iraqi politicians that Maliki's election as premier could trigger punitive economic measures targeting key Iraqi institutions. In a televised interview with Dijla TV, Hoshyar Zebari said Washington signaled possible sanctions affecting the Central Bank of Iraq (CBI), the state oil marketing company (SOMO), dollar inflows, and some segments of the banking sector. An unnamed Iraqi government adviser told Alhurra that similar warnings were conveyed to factions within the Coordination Framework. Shafaq News separately reported that an unnamed U.S. State Department official reaffirmed that Washington would reassess its relationship with Iraq if Maliki becomes prime minister. 964Media reports a senior figure affiliated with Asaib Ahl al-Haq Al-Mada, Middle East Online, and 964Media suggest at least one-third of the Shia Islamist coalition is now opposing his return. Some blocs are reportedly exploring fallback options while others continue regional outreach. The New Arab reports that Hamid Rashid Faleh Al-Shatri, the head of Iraq’s National Intelligence Service (INIS) since December 2024, has risen in Iraqi political discussions as a potential consensus candidate. He's known as a low-profile technocrat with a background in security and intelligence, and is reportedly being considered by factions within the Coordination Framework. That said, there does not appear to be anything close to an agreement on a consensus candidate within the Coordination Framework.
Political figures within the Coordination Framework are making competing efforts to shape the narrative around Maliki's nomination, even as they have reportedly agreed in private to limit their use of the media to elevate internal disputes to the public forum. A lawmaker from Kataib Hezbollah’s political bloc described what he called “softening” in recent U.S. rhetoric and suggested that objections inside the framework are tied to negotiations over ministerial shares. A State of Law member claimed regional actors, including the UAE, had engaged Washington and that U.S. interlocutors signaled no formal obstruction, while asserting al-Maliki intends to form an inclusive government. Meanwhile, commentary linked to the Badr Organization portrayed Maliki’s nomination as gaining momentum and suggested additional U.S. messaging could follow. In contrast, a senior figure from the Hikma movement reiterated opposition, arguing the candidacy risks internal fragmentation, currency volatility, and external complications.
Iraq's Parliament is seeking clarification from the courts amid an ongoing deadlock over the presidency. Asharq Al-Awsat reports that the Parliament has asked the Federal Supreme Court to clarify whether Parliament can continue holding sessions without electing a president, after repeated quorum failures. Lawmakers warned that the delay risks paralyzing state institutions while the government remains in a caretaker role.
Energy
Turkey's state oil company is deepening its Iraq ties through a partnership deal with BP. The Turkish Petroleum Corporation (TPAO) and BP have signed a memorandum of understanding on oil and gas cooperation covering multiple geographic regions, with Turkish officials identifying Iraq — particularly Kirkuk — as a priority area for potential joint development and exploration, Daily Sabah reports. "Our most fundamental priority project is cooperation in Iraq. We are looking at cooperation in Iraq, especially in the Kirkuk fields," said Turkish Energy and Natural Resources Minister Alparslan Bayraktar.
The Karbala gas power plant is getting closer to test operations, part of a move to increase electricity production capacity. Attaqa reports the gas power station is being upgraded to combined-cycle and is moving toward trial production in summer 2026.
Iraq is still moving forward with work to connect its power system to the Gulf grid. Iraq's Electricity Ministry says the project to link Iraq’s grid with the Gulf Cooperation Council (GCC) interconnection network is now more than 90% complete and expected to be operational in the first half of 2026, Iraqi News reports. The interconnection is designed to allow Iraq to import electricity from Gulf states, initially around 500 MW, and eventually higher capacities as subsequent phases are completed. The project involves high-voltage transmission lines from Kuwait’s Al-Wafrah station to Basra’s Al-Faw station.
Anbar province is suffering from fuel shortages because of cuts to gasoline allocations, Sotal Iraq reports. Fallujah, Ramadi, and other Anbari cities have experienced a gasoline shortage with some fuel stations running low or closing due to reduced deliveries. Local oil distribution officials said the province’s gasoline quota was reduced from 1.4 million to 1.2 million liters per day, raising concerns about longer queues and widening scarcity if the cut continues. The provincial fuel distributor denied an actual supply crisis.
Economy
Iraq's "structural" economic crisis is putting a strain on major state banks, Shafaq News reports. The government has withdrawn more than 20 trillion IQD (about $14.2 billion) from Rafidain Bank and 8 trillion IQD (about $5.7 billion) from Rasheed Bank, along with around $7 billion from other financial institutions, to meet public salary obligations. Those measures that have reportedly weakened state banks’ liquidity and credit capacity. The cause is Iraq's continued heavy reliance on oil revenues and lack of comprehensive budget reforms. The figures have not been independently confirmed by official banking disclosures. Despite the risks raised in the report, S&P Global Ratings recently affirmed Iraq's B- rating.
Iraq increased purchases of U.S. Treasury bonds. Shafaq News reports Iraq added $1.1 billion in December 2025, bringing its total foreign reserve investment in U.S. government debt to about $40.8 billion. This reflects a significant rise compared with earlier in 2025, when Iraq’s Treasury holdings stood near $23.4 billion. Regionally, Iraq remains below Gulf peers such as Saudi Arabia and the UAE.
Iraq has added new customs tariffs, risking additional pushback from traders. There were limited protests earlier this month after Iraq began tightening border controls to capture lost customs revenue. The Iraqi Council of Ministers added tariffs on a range of imported goods as part of efforts to increase non-oil revenues, according to Shafaq News. The decision introduces revised duties across multiple product categories under updated customs regulations, prompting concern among traders about higher import costs and potential price increases in local markets. Economist Nabil al-Marsoumi argues in 964Media that if the Kurdistan region implements the new tariffs, it would increase monthly transfers to Baghdad by more than 200 billion IQD ($142 million).
Iraq has rejected calls to stop using a UN-backed platform for managing customs payments. The New Arab reports that Iraq’s Ministry of Trade has rejected external demands to terminate the use of the ASYCUDA (Automated System for Customs Data) platform, insisting that it remains the country’s official customs processing system despite calls from some traders and protests to replace it. The system is central to Iraq’s customs clearance and trade bottlenecks, and the ministry framed the rejection as necessary to preserve trade continuity and revenue flows, despite complaints from business groups about inefficiencies and delays.
Security
Nouri al-Maliki has called for weapons controls and consolidating paramilitary and other factions solely into the Iraqi Army, a statement likely aimed at appeasing Washington's concerns about Iranian influence and sectarianism if he were to return as premier. The statements by Maliki, who heads the State of Law Coalition in addition to being the Coordination Framework’s candidate for prime minister, were reported by Sky News Artabia and reported across Iraqi and regional media.
Iraq has formally proposed to host a meeting of the Global Coalition Against ISIS, according to a statement from the Iraqi Foreign Ministry reported by Iraqi News. The proposal reflects Baghdad’s desire to play a central role in shaping the future direction of the coalition and in coordinating international efforts against ISIS as the U.S. and partners discuss the future mandate of forces in Iraq and Syria.
A transfer of ISIS detainees from Syria to Iraqi prisons has been completed. Asharq Al-Awsat reports that the U.S. Central Command has finished the 23-day operation to transfer more than 5,700 detainees accused of ties to the Islamic State militant group from northeastern Syria into Iraqi custody. Iraq says it will not be a “permanent repository” for foreign detainees after receiving suspects from Syria, BBC Arabic reports. Iraq’s Joint Operations Command reports that trials of those transferred have already begun, with some 1,387 cases now in the judicial system. More than 150 minors are among ISIS detainees transferred from Syria to Iraq, Iraq's Supreme Judicial Council has said, The National News reports. The council said minors will be kept separate from adult detainees, placed in rehabilitation centers, and later referred to a juvenile investigation court.
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