Iraq Economic News and Points To Ponder Thursday Evening 8-27-26
Al-Zaydi And Al-Hakim Discuss Completing The Government Formation And Unifying Positions To Support Reform And Development - 8/27/2026
Baghdad - One News - 8/27/2026 Prime Minister Ali Faleh al-Zaidi met on Thursday with Ammar al-Hakim, head of the National Wisdom Movement, to discuss developments in the country and the challenges facing Iraq at the present time. Both sides stressed the importance of unifying positions among political forces and completing the formation of the government.
The Prime Minister’s Media Office stated that Al-Zaydi received Al-Hakim, and during the meeting they discussed the overall political situation and current challenges, and ways to enhance cooperation between national forces in a way that supports stability.
Both sides stressed the need to unify positions and coordinate between the various political forces, in order to consolidate stability and move forward with reform and development.
The meeting also witnessed an emphasis on the importance of unifying visions and positions on key issues, and agreeing on completing the government formation, in order to enable the government to implement its program and development plans.
The meeting stressed that completing the cabinet is a crucial step to enhance the government's ability to implement its priorities and fulfill citizens' aspirations. https://1news-iq.net/الزيدي-والحكيم-يبحثان-استكمال-التشكي/
Expected US Sanctions On Iraqi Companies And Banks For Dealing With Iran
US sanctions are looming over Iraq... Banks and companies are on the list!
August 27, 2026Last updated: August 27, 2026 The Independent - In the coming days, attention will turn to new American moves that may target Iraqi companies, individuals, and financial institutions, against the backdrop of dealings linked to Iran, at a time when Washington is escalating its economic campaign to isolate Tehran from the global financial system.
According to recent reports, the US administration has warned countries and companies that continue to do business with Iran that they could face secondary sanctions, including the risk of losing access to the US financial system. US Treasury Secretary Scott Bissent confirmed that Washington is moving to expand pressure on Iran's trading partners, including Iraq.
Why is Iraq in danger?
Iraq is considered one of the most sensitive countries to these measures due to the size of its economic relations with Iran, as the volume of trade between the two countries exceeded $10 billion during 2025, while Iraq pays billions of dollars annually for Iranian energy imports.
Concerns are growing for the banking sector, especially since the United States has already imposed sanctions on Iraqi banks for transactions linked to Iran, while Washington continues to monitor the movement of dollars and Iraqi financial transfers.
Who might be targeted by the sanctions?
If Washington moves from the warning phase to implementation, the focus may be on:
Companies or businessmen who are proven to have direct dealings with Iranian entities subject to sanctions.
Banks or financial institutions that facilitate transfers to sanctioned Iranian entities.
Companies linked to the oil trade or Iranian oil smuggling operations under Iraqi cover.
Shipping and transport companies are used to conceal the source of goods or money.
Individuals suspected of involvement in money laundering networks or sanctions evasion.
This is not a new scenario; the US Treasury has previously targeted networks operating from Iraq in smuggling Iranian oil and imposed sanctions on companies and individuals it said helped Tehran circumvent sanctions.
The biggest danger: the dollar
Iraqi concerns are not only about the sanctions on specific individuals, but also about their repercussions on the ability of banks and companies to access the international financial system.
Iraq is heavily dependent on the US financial system for managing a key portion of its oil revenues and foreign reserves, so the inclusion of an Iraqi bank or company on sanctions lists could lead to difficulties in conducting dollar transfers, higher trade costs, and stricter banking audit procedures.
Reuters notes that more than $100 billion of Iraq’s reserves are in the United States, making Baghdad extremely sensitive to any US financial escalation.
Will Baghdad be punished in its entirety?
So far, there is no confirmed information about the issuance of a new American list of specific Iraqi names in the coming days, and therefore a distinction must be made between American warnings and expectations and the sanctions that have actually been issued.
However, current indicators suggest that Washington wants to put pressure on networks dealing with Iran without necessarily resorting to measures that would lead to the collapse of the Iraqi financial sector or completely disrupt the Iraqi economy.
On August 24, the US Treasury launched Operation Economic Outcast to tighten the economic noose around Iran and its networks, targeting dozens of entities, individuals and ships, and warning that those who help Iran could face US action.
What does this mean for the Iraqi market?
If the sanctions are expanded to include Iraqi institutions or companies, several consequences may arise:
First: Tightening control over foreign transfers and dollar purchases.
Second: Increased risks of dealing with companies and individuals linked to Iran.
Third: The possibility of increased demand for the dollar in the parallel market if concerns about banking restrictions increase.
Fourth: The high cost of imports and financial transfers for some traders.
Fifth: Increase pressure on the government and the central bank to prove Iraq’s commitment to anti-money laundering and sanctions financing rules. https://mustaqila.com/عقوبات-أمريكية-مرتقبة-على-شركات-ومصار/
Al-Fariji: Iraq Is Facing A Liquidity Crisis, And The Proposed Solutions Are “Emergency” Measures
Information/Baghdad... Crisis management expert Ali al-Fariji explained on Thursday that Iraq is facing a genuine liquidity crisis following the recent events in the region, particularly in the Strait of Hormuz. He added that the solutions currently being proposed are merely stopgap measures.Al-Fariji told Al-Maalouma, "The delay in paying state employees' salaries should not be viewed as simply an administrative delay in funding procedures, because the problem is much deeper. Iraq is facing a real liquidity crisis directly linked to the decline in oil revenues, especially after the repercussions of the Strait of Hormuz crisis and the decrease in the amount of oil that Iraq can export and convert into cash revenues."
He added, "The government is not without solutions, but the problem is that most of the solutions currently being proposed are stopgap measures.
Salaries can be secured through liquidity management, reprioritizing spending, making limited and carefully considered use of domestic borrowing, and postponing some unnecessary expenditures. However, these measures only address the current month's problem and do not address the root cause if the decline in oil revenues continues."
He explained that "the crisis in the Strait of Hormuz has caused a significant decrease in oil exports and cash revenues since March. In some months, oil revenues have fallen to approximately $2-2.5 billion per month, compared to levels exceeding $6 billion under normal circumstances.
This means that Iraq has lost billions of dollars monthly in cash flow, and with the continuation of the crisis, the accumulated losses have reached tens of billions compared to normal export levels."
He pointed out that "the salary crisis is a consequence, not the root cause of the problem, and a quick solution is possible. The government can, within a week, put in place an emergency liquidity plan that guarantees salaries and basic services, halts or postpones unnecessary spending, and reorders government obligations according to priority.
However, within a month, we must move from managing the crisis to addressing its source by increasing the quantities of oil that can be exported through outlets and routes that do not depend on the Strait of Hormuz, and expediting export alternatives, in parallel with concrete measures to increase non-oil revenues." End 25N
Al-Zaydi Before The Integrity Committee: Corruption Is The Most Serious Threat Facing The State, And We Are Waging A Fierce Battle To Dry Up Its Sources - 8/27/2026
Baghdad - One News - 8/27/2026 Prime Minister Ali Faleh al-Zaidi affirmed on Thursday that corruption represents the most serious threat facing the state at the present stage, stressing that the government is waging a “fierce battle” to combat it and dry up its sources, while calling for a review of government contracts and an audit of project costs to reduce waste and protect public funds.
This came during Al-Zaydi’s reception of the head of the Parliamentary Integrity Committee, Taha Hatif Al-Difai, and members of the committee, where the meeting discussed strengthening cooperation between the executive and legislative authorities in the files of combating corruption and prosecuting those involved in it. Al-Zaydi said that the state is based on two fundamental pillars: law and integrity, stressing the need to unify the efforts of state institutions and enhance coordination between them to confront corruption and prevent the depletion of public funds.
He pointed out that one of the most prominent avenues for corruption is the exaggeration of project costs, explaining that the government is working on adopting pre- and post-audit of government contracts, according to the principle of “prevention is better than cure,” with the aim of uncovering cost exaggerations before they turn into actual waste of public money.
The Prime Minister stressed the importance of the oversight role played by the Parliamentary Integrity Committee in following up on corruption cases and supporting government measures aimed at reducing its manifestations and addressing its causes.
For their part, the chairman and members of the Parliamentary Integrity Committee affirmed their support for efforts to combat corruption and prosecute corrupt individuals, stressing the importance of passing the Internal Control Authority Law, the first reading of which has been completed in the House of Representatives.
The committee members called for a review of previous government contracts suspected of corruption or involving inflated costs, as well as for ministries and state institutions to expedite their response to the committee's requests and provide it with the necessary documents and information regarding priority contracts and files.
https://1news-iq.net/الزيدي-أمام-لجنة-النزاهة-الفساد-أخطر-م/