Iraq: ISHM: July 24 - 31, 2025

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Country: Iraq Source: Enabling Peace in Iraq Center Please refer to the attached file. Key Takeaways:POLITICS: KRG Signals Commitment to Recent Oil and Revenue Deal with Baghdad – On July 30, the Kurdistan regional government (KRG) cabinet announced that a portion of its oil production will soon be handed over to Iraq’s Oil Marketing Company (SOMO) for export through the Turkish port of Ceyhan. The announcement followed a cabinet meeting to discuss implementation of the July 16 agreement with the federal government on oil exports and public sector salaries. The statement did not specify the volume or timing of the deliveries, but a federal Oil Ministry delegation is expected to visit Kurdistan soon to assess production levels and set a delivery date, according to industry sources. The KRG also urged Baghdad to release funds for June and July salaries. Both sides have taken goodwill steps that suggest a positive outlook for the deal. Last week, after months of delay, Iraq’s Finance Ministry released funds for May salaries, while the KRG transferred IQD 120 billion (~$91 million) to the federal government as its share of May’s non-oil revenues—a significant increase over previous contributions. In other developments, on July 27, the Baghdad provincial council elected Atwan al-Atwani as the new governor, following its vote the previous week to dismiss Abdulmuttalib al-Alawi for exceeding the legal retirement age. Both Atwani and Alawi belong to the State of Law bloc. On July 28, Iraq’s national security adviser, Qasim al-Araji, said from Erbil that federal and KRG authorities were close to identifying the groups behind recent drone attacks on oil fields in the Kurdistan region. more…SECURITY & HUMANITARIAN: Kataib Hezbollah Clashes with Police in Baghdad; More Drones Target Kurdistan Region – On July 27, intense clashes broke out between Kataib Hezbollah (KH) militiamen and Iraqi police in Baghdad’s Dora district, leaving at least two dead and 12 wounded. The violence stemmed from a dispute over the leadership of the Karkh Agriculture Directorate, a post seen as strategic for its control over farmland near the capital. The incident began when the recently dismissed director—a KH affiliate—returned to the office with around 20 KH fighters to forcibly remove his successor, who is reportedly backed by a rival militia, Kataib al-Imam Ali. The militiamen opened fire on police responding to the attack. Iraq’s Joint Operations Command said 14 gunmen, identified as members of PMF brigades 45 and 46 (KH), were arrested. The two militias have reportedly been vying for control over lucrative farmland through appointments to the directorate. At an emergency security meeting, PM Sudani instructed security chiefs “not to be lenient in upholding the law and protecting state institutions,” emphasizing that “no one is above the law.” He also ordered an investigation into reports of illegal land seizures by the directorate. The U.S. Embassy in Baghdad condemned the violence and urged the Iraqi government to “bring these perpetrators and their leaders to justice without delay.” Between July 28–30, four explosive and surveillance drones crashed into buildings and open areas in and around Erbil. There were no casualties, and no group has claimed responsibility. In other news, on July 31, Iraqi authorities began repatriating 812 Iraqi nationals from the al-Hol camp in northeastern Syria, according to camp officials. more…ECONOMY & CLIMATE: Iraq’s First Major Solar Project to Come Online This Year; Turkey Pushes for Maximizing Oil Pipeline Utilization – On July 24, Iraq’s Electricity Minister said that the first phase of a solar power project in Basra will add 250 megawatts to the national grid by the end of the year. The “Shams al-Basra” (Basra Sun) project will ultimately generate 1,000 megawatts. It is part of a broader energy deal with TotalEnergies, the Gas Growth Integrated Project (GGIP), which also includes seawater processing, gas capture, and oil field development. On July 28, Turkey’s Energy Minister Alparslan Bayraktar said Ankara wants a revised pipeline agreement with Iraq that ensures full utilization of the Kirkuk-Ceyhan pipeline. The current agreement, signed in 1973 and extended in 2010, expires in July 2026. Bayraktar said the existing deal is inadequate from legal and commercial standpoints and that Turkey’s proposal—sent to Baghdad last week—seeks to avoid legal disputes and includes the possibility of extending the pipeline to Iraq’s prolific southern oil fields around Basra. Bayraktar noted that the pipeline “has a capacity of almost 1.5 million barrels per day. There’s no flow at the moment. Even when it did flow, it was never at full capacity.” The Turkish minister said that the deadline to renew the pipeline agreement was July 2026. In other developments, on July 25, Iraq’s Oil Ministry reported that crude oil exports in June averaged 3.296 million bpd—an increase of about 18,000 bpd from May. On July 27, Iraq’s Deputy Agriculture Minister said wheat and rice production declined significantly this year due to below-average rainfall. more…For more background on most of the institutions, key actors, political parties, and locations mentioned in our takeaways or in the stories that follow, see the ISHM Reference Guide.