THE EARLY PHOENIX
September 5, 2024
★ IRAQ
Iraq Faces Economic Challenges, Energy Reforms, Sanctions, Reduced Exports
Iraq’s economic stability is at risk as oil exports to the U.S. dropped to 153,000 barrels daily, 13,000 barrels lower than the previous week. Falling oil prices threaten Iraq’s government revenues, potentially leading to funding shortages. These shortages could cause delays in public services and essential government programs. To address these risks, Iraq plans to offer 10 new gas exploration areas to U.S. companies during an upcoming visit. These efforts aim to diversify Iraq’s energy sources and reduce its reliance on Iranian gas imports. Iraq’s gas investment rates are projected to increase to 70% by the end of 2024. Meanwhile, a high-level delegation from Iraq’s central bank visited the U.S. to discuss easing sanctions on 18 Iraqi banks. The sanctions, tied to money laundering and connections to Iran, have destabilized Iraq’s banking system and weakened the dinar’s value.
Iraq’s Security at Risk: ISIS, Drug Trafficking, and U.S. Withdrawal
The joint U.S.-Iraqi raid on August 29, which killed 15 ISIS fighters, underlines ongoing efforts against ISIS. However, Iraq’s reliance on U.S. intelligence and military support remains critical for containing the terrorist threat. The expanding drug trafficking networks, now transitioning Iraq from a transit point to a producer, present an even greater internal risk. Without U.S. assistance in counter-narcotics and border security, these networks could destabilize Iraq further. Political factions are divided on the U.S. troop withdrawal, with some leaders expressing concerns over national security. Regional tensions are also increasing, highlighted by Iraqi drone attacks on Israel. These growing security challenges threaten Iraq’s stability and its regional role.
U.S. Urged to Investigate Iraq’s Oil Sanctions Evasion
A letter to President Biden raises concerns about Iraqi Oil Minister Hayyan Abdul-Ghani’s involvement in sanctions evasion benefiting Iran. Reports suggest Iraqi officials facilitate illegal oil sales, allowing Iran-aligned militias and the IRGC to finance terrorism. The letter highlights how Iranian crude is disguised as Iraqi oil and sold on the global market, violating U.S. sanctions. The Biden administration is urged to investigate Abdul-Ghani’s potential complicity and prevent his entry into the U.S. until these allegations are fully reviewed. Iraq’s role in circumventing U.S. sanctions remains a critical concern.
Iraq-Turkey Trade Thrives Despite Tensions, Joint Anti-Terrorism Efforts
Despite ongoing conflicts, Iraq remains Turkey’s top importer, ranking fourth in overall trade volume. Economic measures against Turkey, such as land occupation and water disputes, have proven ineffective, partly due to poor coordination between Iraq’s central government and the Kurdistan Region, which controls the borders. Alongside trade, Iraq and Turkey are also collaborating on anti-terrorism efforts. Both nations are investigating the downing of a Turkish drone in Kirkuk and are committed to strengthening security measures. This partnership extends to the “Development Road” project, aiming to enhance regional stability and support global economic development. Meanwhile, Iraq’s customs also reported a 138% increase in imports from Iran over the past five months of 2024.
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