Iraq: Al-Zaidi Government, Oil Policy and Defense Realignment

Context & Background

Iraq has entered a pivotal phase under Prime Minister Ali Al-Zaidi's government, confirmed in May 2026, with an agenda that now spans energy policy, export diversification and defense realignment. This topic page tracks new Oil Minister Bassim Mohammad Khudair and Iraq's outreach to IOCs and SOMO, Baghdad's plan to lift crude capacity toward 7 million bpd and press for a larger OPEC+ quota, the US-backed Iraq-Syria pipeline revival and the Kirkuk-Ceyhan export file surfaced during Tom Barrack's Erbil talks with the Barzanis, and Foreign Minister Fuad Hussein's proposal for Iraq to host an Iran-GCC summit alongside Araghchi's Baghdad visit.

On security, it covers Al-Zaidi's Washington talks with US envoy Tom Barrack on the roadmap for after the 30 September 2026 withdrawal of US forces, the convergence of Saudi, Emirati, Kuwaiti, Jordanian and Bahraini discussions on a coalition to strike IRGC-backed militias, the integration of Shiite factions into the armed forces, MBS's estimations on the militia file, and the Iraq-France Rafale F4 deal complicated by Israeli, Kurdish and US objections. Built for Iraq-focused defense exporters, Kurdistan policy analysts, GCC security planners, energy desks and Iran sanctions desks.