
Iraqi PM al-Zaidi meets Trump in Washington today, seeking US investment and vowing to disarm pro-Iran militias by September. Oil exports and regional stability hang in the balance.
Iraqi Prime Minister Ali al-Zaidi meets US President Donald Trump in Washington on 14 July, his first international trip since taking office in April. The visit comes as the US administration piles pressure on Baghdad to curb Iranian influence. The US-Iran conflict has escalated in recent weeks, AFP reported.
Al-Zaidi has already met US Special Presidential Envoy to Iraq Tom Barrack, discussing stronger bilateral ties and economic cooperation, according to an official statement.
The prime minister comes to Washington bearing a list of economic priorities. He hopes to attract US investment after significant revenue losses from halted oil exports caused by the Iran war and the closure of the Strait of Hormuz, Al Jazeera reported. Oil exports account for about 90% of Iraq's budget revenue, and most crude passes through the disputed strait.
Several memorandums of understanding in the oil and gas sector are expected to be signed, government spokesman Haider al-Aboudi said on 13 July. Al-Zaidi also plans to establish a fund that would deposit half a million barrels of oil per day in exchange for help boosting Iraq's electricity supply.
Security is the other big agenda item. Al-Zaidi's government has given pro-Iran armed groups, which Washington designates as terrorist organizations, until September 30 to disarm. That date coincides with the end of the US-led anti-jihadist coalition's mission, AFP said. In an op-ed in the Washington Post ahead of his visit, al-Zaidi wrote that he leads "a government committed to ensuring that the state possesses the legitimate monopoly on the use of force."
The balancing act is delicate. A senior Iraqi politician told AFP on condition of anonymity that even if the current government adopts a more US-friendly path, "it doesn't mean that Iraq is turning against Iran." Iraq "must maintain the long-standing balance" between its two powerful allies.
The US-Iran proxy rivalry has long turned Iraq into a battleground. Last week, Iraq's holy cities hosted a massive funeral procession for Iran's late supreme leader Ali Khamenei, who was killed in a US-Israeli strike on Tehran.
Trump formally informed lawmakers that the US is "once again at war with Iran," giving his administration 60 days to use the military in the region without congressional approval. That timeline overlaps with Iraq's disarmament deadline.
Al-Zaidi's relationship with Trump started on a positive note. Trump congratulated him when he became prime minister in April and expressed hope for closer cooperation. Since April, Iraq has signed several oil-sector deals with US companies, and the US has resumed cash shipments for Iraq's oil revenue, handled by the Federal Reserve Bank of New York since 2003.
In his WaPo op-ed, al-Zaidi said his message to the US is that Iraq "stands apart from regional alignments and conflicts, and chooses instead the path of development." He wants "leading American companies to consider opportunities in developing Iraq's infrastructure."
The risks are significant. Any misstep could reignite violence from pro-Iran militias or strain Iraq's ties with Tehran. The oil market remains on edge: Iraq is a founding OPEC member, and any disruption to its exports would tighten global supply. The Strait of Hormuz closure has already cut Iraq's export capacity.
The September 30 deadline for armed groups to disarm will test al-Zaidi's pledge to make the state the sole holder of force. Iraq's oil revenue and security hang on the outcome.
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