Iraq Economic News and Points To Ponder Late Wednesday Evening 7-8-26

Al-Mustaqilla Reveals: 3 Key Issues In Al-Zaidi's Visit To Washington

July 8, 2026Last updated: July 8, 2026   Al-Mustaqilla - As attention turns to Iraqi Prime Minister Ali al-Zubaidi's visit to Washington on July 15, information obtained by Al-Mustaqilla reveals that the economic agenda will be at the forefront of the talks, with an American focus on financial files related to Iran, while the file of combating corruption is absent from the visit's agenda.

According to an informed source, the talks will focus on three main axes,

The first of which is the issue of weapons and restricting them to the state, while the second

and third axes will be purely economic, relating to monitoring the movement of the dollar and Iranian economic interests inside Iraq.

The source indicates that Washington will discuss with the Iraqi side mechanisms to curb dollar smuggling to Iran and tighten oversight of the Iraqi financial system to prevent hard currency from reaching entities subject to US sanctions. This comes amid continued US pressure on Baghdad to reform the banking sector and strengthen financial compliance.  

The third axis relates to Iranian economic influence within Iraq, whether through companies or trade and financial transfer networks. This is an issue that the United States believes is directly linked to the effectiveness of the sanctions imposed on Tehran and to the stability of the Iraqi financial system.

According to the source, the visit's agenda does not include any item related to combating corruption or opening major corruption files, despite the campaign announced by the government during the past period. This raises questions about the priorities of the talks with the American administration, which seem to be focused on financial security, the movement of the dollar, and economic relations with Iran more than on internal reform files.

Observers believe that the nature of these files reflects Washington’s interest in securing the Iraqi financial system and preventing its use as a loophole to circumvent sanctions, at a time when Baghdad is seeking to maintain the stability of the dinar’s exchange rate and ensure the continued flow of dollars through official channels, amid escalating financial and regional challenges. https://mustaqila.com/المستقلة-تكشف-3-ملفات-رئيسية-بزيارة-الز/

Zaidi In Front Of The "Big Whales" Test .. Washington Is Waiting To Prove Seriousness In The Files Of Corruption And Weapons Nearly $300 Billion Has Fled Out Of Iraq

Baghdad / Tamim al-Hassan  Before Prime Minister Ali al-Zaidi landed in Washington in mid-July, Baghdad seems to have found itself in front of a sensitive political test, entitled the funeral of former Iranian leader Ayatollah Ali Khamenei and a number of his family members in Iraq.

The event, which is supposed to fall within the framework of religious ceremonies, quickly turned into a political file where the calculations of Baghdad, Tehran and Washington intersect, to become one of the first decades before the upcoming meeting between Zaidi and US President Donald Trump.

Although the visit to the White House comes amid signs of improved relations between Baghdad and Washington, it still faces serious questions about Zaidi’s ability to implement the commitments contained in the understandings concluded between the two sides in what has become known as the “June settlement.”

On the other hand, observers believe that the prime minister has made significant progress over the past week towards the US administration, after launching a wide campaign to prosecute officials accused of corruption, in a move seen as an attempt to prove the seriousness of the implementation of the pledges made to Washington.

Iranian Pressure. Iraqi Hesitation

A political source familiar with the agreement to hold the funeral of Khamenei in Iraq on Wednesday was not an easy decision within the government, but was preceded by hesitant discussions, before tilting the scales under Iranian pressure, supported by positions of forces in the coordination framework and armed factions.

The source, a deputy in one of the large Shiite parties, told Al-Mada, on condition of anonymity, that “Zaidi is aware that this file may put him in an embarrassing position in front of Trump during his upcoming visit to Washington.”

According to information circulating in the political circles, the funeral program has witnessed a remarkable amendment, as Baghdad was excluded from the schedule of the ceremony, after it was scheduled to hold a ceremony in the city of Al-Kadhimiya, to limit the visit to Najaf and Karbala, with the possibility of receiving the body of the guide at Najaf airport.

It is estimated that a large funeral ceremony in the capital may have turned into anti-American demonstrations, punctuated by chants and slogans targeting the US president, similar to the scenes that accompanied the funeral ceremony inside Iran.

US President Donald Trump has shown a clear interest in the funeral ceremony that began over the weekend in Iran.

Trump said in a press statement, commenting on the scenes that showed thousands of participants crying during the ceremony, that he was surprised by the size of the popular interaction, before adding: "Maybe those are fake tears."

Iranian Foreign Minister Abbas Araqchi arrived in Baghdad, in his first visit since the end of the last war in the region, in conjunction with the launch of what has become known as the "Dawn Campaign", which targeted deputies and officials accused of corruption last week.

According to the leak after the visit, Araqchi discussed with Iraqi officials the details of the funeral ceremony, while preliminary information indicated that Baghdad will be one of the main stations of the event.

But the Iraqi committee to organize the visit later quickly denied that information, before the features of the new program, which was limited to Najaf and Karbala, were later clarified.

Religious Rituals. No Political Calculations

On the other hand, former diplomat Ghazi Faisal provides a different reading of the file, as he believes that Washington, including President Trump, realizes that the funeral of the former Iranian leader does not fall within the official work of the Iraqi government, but falls within the framework of religious and sectarian rituals.

Faisal told Al-Mada that "Zaidi is concerned with running the government, while Khamenei's funeral is part of the religious traditions," adding that Baghdad's approval of the funeral ceremony in Najaf and Karbala "does not exceed being a response to religious traditions followed with religious or official figures or even ordinary citizens."

Faisal pointed out that Trump himself announced that Iran was given a week to complete the funeral ceremony, out of respect for this occasion, without exerting pressure related to negotiations between the two parties.

He believes that what happened represents a "temporary truce" to allow for the end of the ceremony, before the resumption of the negotiating track between Washington and Tehran.

The former diplomat concludes that the United States, as a multi-religious and multicultural country, usually respectfully views religious and sectarian diversity and associated rituals, making it unlikely that the funeral ceremony, in itself, will turn into a crisis in official relations between Baghdad and Washington, unless it is accompanied by messages or political positions beyond its religious dimension.

How Is Zaidi Being Seen In Washington Now?

On the image of Zaidi in the United States, the researcher on the American issue, Kato Saadullah, believes that Washington still gives Zaidi an important political opportunity, but at the same time links the continuation of this support to the extent of its ability to implement real reforms.

Saadullah told Al-Mada that the Prime Minister's visit comes at the invitation of US President Donald Trump, and coincides with the celebrations of the 250th anniversary of the founding of the United States, adding that Trump will be before that at the NATO conference in Ankara, to meet Zaidi after his return to Washington.

He points out that Trump has already announced his support for Zaidi and the current government, a position that has given Baghdad an important political margin, but this support, according to Saad Allah, will not be open or unconditional.

He adds that the US president, through his envoy Tom Barrack, informed the Iraqi government of a set of priorities that should be worked on if Baghdad wants to preserve the American cover.

Three American Priorities

Saadullah puts these priorities in three main files.

First, to end the phenomenon of weapons outside the framework of the state, and to dissolve militias and armed factions, thus restoring the state’s monopoly on force.

The second file is to fight corruption, which, according to the researcher, is the issue that Trump focuses on more than any other file, based on the conviction that corruption represents the gateway from which the rest of the Iraqi crises branch out.

The third file is the cessation of the smuggling of hard currency, and the closure of channels that drain the Iraqi financial reserves and feed financial networks linked abroad.
Is the Dawn Campaign enough?

Saadullah believes that the recent campaign launched by Zaidi against a number of those accused of corruption is an important step, but it still needs more evidence.

Will this campaign be enough paper that Zaidi carries to Washington to convince the US administration, Congress, and American institutions that he has already started the battle against corruption, or will it be read as late measures that do not live up to the challenges?

He believes that the answer to this question will largely determine the nature of the US position on the Iraqi government during the next phase.

Congress Calls Zaidi’s Actions A “Smug”!

Despite the initial U.S. welcome of recent moves, Saadullah points to the presence of powerful voices in Congress that continue to view with skepticism what is going on in Baghdad.

He cites the position of Congressman Joe Wilson, who criticized the Zaidi campaign, calling it a “joke” and considering it not a real confrontation with the system of corruption.

Saadullah recalls that Wilson went further when he published the names of prominent political figures, saying that any serious campaign should start from "big whales", and mentioned in his tweet Nouri al-Maliki, Hadi al-Amiri, and Qais al-Khazali.

Washington Exam

Saadullah believes that the task awaiting Zaidi in Washington will not be easy.

If he only presents the measures taken over the past week, he will likely not get a full American conviction.
If he succeeds in convincing the US administration that he will return to Baghdad to complete a broad campaign targeting senior corruption suspects, in parallel with practical steps to limit arms to the state, the chances of continued US support will increase significantly.

He added that the visit comes at a very sensitive economic time, as Iraq is facing a financial crisis as a result of the suspension of oil exports during the recent war with Iran, which made Baghdad more in need of loans and international financial support.

He stressed that obtaining funding from the World Bank or major financial institutions would be more difficult without US political cover, which gives the visit more importance than its diplomatic dimension.
Is the Syrian experience a repeat?

Saadullah argues that the nature of U.S. support will become clearer after the visit, questioning whether Trump will deal with Zaidi in the same way he treated Syrian President Ahmed al-Sharaa by linking support to a series of conditions and procedures.

He adds that if US support is already conditional, Baghdad will be required to show more decisive steps in the files of anti-corruption and disarmament, because these two files will remain the basic criterion for judging the performance of the government.

Observers view the visit as the culmination of the understandings reached by Zaidi with US envoy Tom Barrack during his visit to Baghdad last month, which became politically known as the "June settlement", which includes besieging Iranian influence and creating a wider environment for US investment inside Iraq.

The battle of corruption. Figures follow Zaidi to Washington

On the other hand, the former diplomat and head of the Iraqi Center for Strategic Studies, Ghazi Faisal, believes that the real battle facing the government of Ali al-Zaidi is the fight against corruption, stressing that the government has begun to pursue money laundering, smuggling and corruption networks, especially in the oil and electricity sectors, in addition to tracking financial networks in neighboring countries and Europe, including more than 264 defendants and their money.

Faisal pointed out that the World Bank has already talked about smuggling more than $ 300 billion out of Iraq, considering that dismantling these networks and recovering funds may take seven years or more, because of their association with banks and external companies and the merger of part of the money in the economies of other countries.

Faisal calls for a comprehensive audit of state institutions through international audit companies.
Faisal concludes that Washington is aware of the complexities of confronting corruption in Iraq, but it will look at any real progress in this file as the most important card that Zaidi can carry to the White House, because the success of the government will be measured by its actual results in combating corruption and recovering money, not just by launching campaigns    https://almadapaper.net/442372/

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