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Iraq's PM Goes to Washington: Can He Get Money and Keep the Peace?

Elena MarquezPublished 3w ago4 min readBased on 3 sources
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Iraq's PM Goes to Washington: Can He Get Money and Keep the Peace?

Iraqi Prime Minister Ali al-Zaidi traveled to Washington this week for his first major trip since taking office in May 2026. He brought 70 officials with him—ministers, business leaders, and advisers Al Jazeera. The visit is about building a stronger partnership between Iraq and the United States.

Iraqi government spokesman Haider al-Aboudi said the trip would shift how Iraq and the US work together "from crisis management to a strategic economic partnership" Al Jazeera. In other words: Baghdad wants something that lasts, not just quick deals. Oil and gas are expected to be the main topic Reuters.

Oil is Iraq's biggest money source. Right now, Iraq exports 3.4 million barrels of oil per day, and about 90 percent of that oil travels through the Strait of Hormuz, a narrow waterway between countries Al Jazeera. This is a problem because if that waterway closes—like it did briefly during a recent war between the US, Israel, and Iran—Iraq loses its income.

Baghdad wants to pump more oil and find new routes to sell it, so it doesn't depend on that one waterway. The government proposed a joint energy fund with the US: starting with 500,000 barrels per day, then growing to two million Al Jazeera. Al-Zaidi also wants to triple Iraq's total oil output within three years Al Jazeera. Iraq is also asking the International Monetary Fund for an $8 billion loan—a large sum of money with strict rules attached Al Jazeera.

Bringing 70 officials shows Baghdad wants real contracts signed, not just friendly talk. If both the US and Iraq make money from the same oil partnership, both countries will want to keep it going, no matter who is in charge.

But there is another issue underneath all this: weapons and militias. The US wants Iraq to make sure only the Iraqi government controls guns and weapons Al Jazeera. Al-Zaidi promised this in June, saying Iraq's state would have total control Al Jazeera.

The problem: powerful militia groups linked to Iran refuse to give up their weapons Al Jazeera. These groups fought against US forces during the recent war. The Islamic Resistance in Iraq, a coalition of these militias, issued a rejection statement just hours before al-Zaidi left for Washington Al Jazeera. The timing sent a clear message.

Here is the core problem: Iraq needs American money and investment to grow its economy. But Iraq also needs Iran to accept whatever the government does, because Iran has influence through these militia groups. You cannot have both. If al-Zaidi takes America's money and builds an oil partnership, the Iranian-backed militias become less powerful. If he protects those militias to keep Iran happy, the US deal might fall apart.

The IMF loan adds another wrinkle. The International Monetary Fund demands strict budgets and financial reform before it hands over money. This might conflict with the oil deal the US is offering Al Jazeera.

By the end of the week, watch for three things: Does the oil fund actually get signed? Does Iraq get IMF money? And does anyone say out loud that militias need to disarm? The answers will show whether Baghdad can really build the partnership it wants.