Iraq stands at a historic turning point, with Prime Minister Ali al-Zaidi's government facing mounting pressure from Washington to dismantle the "deep state" and ensure that all weapons remain under state control.

International Pressure and Its Impact on Investment

The issue of disarming armed groups in Iraq is no longer solely an internal matter; it has become Washington's primary condition for helping Baghdad avoid isolation.

Missile and drone attacks carried out by these groups against energy infrastructure have alarmed major international companies and contributed to a decline in foreign investment.

This situation has negatively affected the Kurdistan Region, Baghdad, and the companies themselves.

U.S. Sanctions and Their Effect on Iraq’s Banking Sector

Due to the involvement of armed groups in dollar-smuggling operations, the U.S. Department of the Treasury has imposed strict sanctions on Iraq’s banking sector.

These measures have directly contributed to the depreciation of the Iraqi dinar against the U.S. dollar and caused significant financial instability in the markets.

Growing Tensions with Gulf Countries

On the diplomatic front, attacks carried out by armed groups against neighboring countries have strained Iraq’s relations with Gulf states to an unprecedented degree.

These countries have officially protested attacks launched from Iraqi territory against their lands.

Human and Economic Costs in the Kurdistan Region

The Kurdistan Region has been among the primary victims of these attacks. In addition to the repeated targeting of energy infrastructure, the assaults have resulted in the martyrdom and injury of a number of citizens and continue to pose a threat to the Region’s stability.

Political Developments and the Future of the Government

Muqtada al-Sadr’s initiative to distance himself from armed groups has prompted swift reactions from factions within the Coordination Framework, with many of them withdrawing their support for those groups.

This development opens the door to Washington’s approval of al-Zaidi’s government and could help pave the way for greater stability and the return of international investment.

A Defining Moment for Al-Zaidi’s Government

Iraq’s political landscape has reached a decisive stage. While most political factions have shown flexibility, some groups continue to reject the disarmament process.

The coming days will determine whether al-Zaidi’s government can capitalize on this opportunity to strengthen state authority or whether armed groups will succeed in disrupting the governing process.