“The US Defense Act 2026”: Strict conditions on Iraq and a firmer presence in Syria

The text of the National Defense Authorization Act for fiscal year 2026 reveals a package of strategic decisions that reshape the American military presence in the Middle East, and establish new parameters for the relationship with the Baghdad government, while extending operations against ISIS.

The US House of Representatives passed the bill by an overwhelming majority (312 votes to 112), and it now heads to the Senate for final ratification.

Officially ending the “state of war” with Iraq

In a long-awaited historic move, Congress formally repealed two key authorizations used to launch military operations in Iraq: the 1991 resolution concerning the First Gulf War (the liberation of Kuwait), and the 2002 resolution that paved the way for the invasion of Iraq and the overthrow of Saddam Hussein’s regime.

This repeal ends the legal basis that US presidents have relied on for decades to launch military operations in Iraq without consulting Congress, thus closing the chapter on “open-ended wars”.

Freezing funds for “security cooperation” and conditions for “disarming militias”

Despite the repeal of the war authorization, Congress tightened its grip on security assistance to Iraq, with legislation freezing 50% of the Office of Security Cooperation in Iraq (OSC-I) budget for 2026.

Her release was contingent upon the Minister of Defense providing a “certification” that the Iraqi government had taken credible steps to “reduce the influence of pro-Iranian militias” through a public and verifiable Disarmament, Demobilization and Reintegration (DDR) process, and to enforce state sovereignty by strengthening the authority of the Prime Minister as Commander-in-Chief of the Armed Forces.

The US Secretary of Defense was given the authority to suspend this freeze for 180 days if national security interests so required.

Congress stressed the need to investigate and hold accountable security elements or “militias” operating outside the official chain of command and involved in attacks against U.S. or Iraqi forces.

Syria: Preventing withdrawal and securing detention camps

On the Syrian issue, Congress adopted a hardline stance against any sudden military withdrawal and prohibited the reduction of bases. The law also prohibited the use of any funds to reduce the number or merge US military bases in Syria unless the Secretary of Defense and CENTCOM provided certification confirming that the new situation would not affect the ability to combat terrorism, along with a plan to close any security gaps.

Securing the Al-Hol and Roj camps

The law (Section 1216) obliges the US Department of Defense to take urgent measures to support the protection of detention camps for ISIS members and their families (Al-Hol and Roj), and to support local partners (SDF) to prevent the escape of detainees or the return of extremism, while submitting a detailed annual report on plans to return detainees to their countries.

Extending counter-ISIS operations and supporting partners

The law affirmed the continuation of the war on terror by extending the following legal authorities until December 31, 2026: providing assistance to vetted Syrian groups and individuals, providing support for operations against ISIS, and compensating coalition countries that support U.S. military operations.

Shafaq.com

Today, Sunni forces are holding an “important” meeting to decide on the nomination of the Speaker of Parliament.

The “National Political” Council, which unites the Sunni forces that won the 2025 parliamentary elections, intends to hold an “important” meeting on Thursday to decide on the nomination of the Speaker of the Iraqi Parliament.

A senior official in the council told Shafaq News Agency that “the leaders of the National Political Council will hold an important meeting this evening, Thursday, at the home of the leader of the Azm Alliance, Muthanna al-Samarrai, in the presence of all the council’s leaders, to decide on the nomination of the next Speaker of Parliament in a consensual manner among all the Sunni political forces.”

The source, who asked not to be named, added that “the most prominent candidates for the presidency of the House of Representatives are (Mohammed al-Halbousi, Muthanna al-Samarrai, Thabit al-Abbasi) and perhaps new names will be put forward during today’s meeting, including (Haiba al-Halbousi, Mahmoud al-Qaisi).”

He pointed out that “the leaders of the council are in contact with the leaders of the Shiite Coordination Framework to coordinate positions and prevent any veto on the name of any figure that the Sunni political leaders may agree on, in order to prevent opposition to them and to ensure a vote in favor of whoever is chosen in the first session of the new parliament.”

On Wednesday, Azam Al-Hamdani, a leader in the Al-Azm Alliance, revealed that the date for the third session of the National Political Council had been set, and indicated that it would be dedicated to discussing the candidate for the presidency of the Iraqi parliament.

Al-Hamdani told Shafaq News Agency that “the National Political Council will resume its sessions that it held last week at the home of the head of the Progress Party, Muhammad al-Halbousi,” indicating that “the next session will be the third and will be held at the home of the head of the Azm Party, Muthanna al-Samarrai, and the meeting is expected to be held tomorrow, Thursday, or next Sunday.”

He explained that “the third session will be held to resolve the issue of entitlements within the Sunni bloc, and what is related to the presidency of the House of Representatives and the rest of the other positions within the government formation, in addition to completing the process of building the state through building the Iraqi government with the participation of everyone.”

Last month, the Sunni alliances and parties that won the elections announced the establishment of the “National Political Council”.

This came during an expanded meeting held at the initiative and invitation of the head of the Sovereignty Alliance, Khamis al-Khanjar, in Baghdad, with the aim of unifying visions and positions regarding major national issues and strengthening joint work between political leaders and blocs, according to a statement issued at the time.

According to the final election results, Sunni forces won 77 seats, making the reshaping of alliances a crucial factor in the negotiations to form the next government.

Last Monday, the Independent High Electoral Commission sent the final results of the sixth parliamentary elections to the Federal Supreme Court (the highest judicial authority in Iraq) for ratification.

Shafaq.com

Iraq achieves a significant leap in its oil exports to America, surpassing Saudi Arabia.

The U.S. Energy Information Administration announced on Thursday that Iraq’s oil exports to the United States totaled more than 7 million barrels during November, an increase of more than 2.5 million barrels over the previous month.

The administration stated in a table seen by Shafaq News Agency that “Iraq exported 7.920 million barrels of crude oil to America during the month of November, up from the month of October, in which Iraqi oil exports amounted to 4.495 million barrels.”

She added that “Iraq exported an average of 149,000 barrels per day of crude oil to America during the first week of November, while it exported an average of 92,000 barrels per day in the second week, an average of 397,000 barrels per day in the third week, and an average of 435,000 barrels per day in the fourth week.”

The U.S. Energy Information Administration explained that “Iraq ranked third in its exports to America last month, after Canada, which ranked first as the country exporting the most oil to America, followed by Mexico.”

The administration noted that “Iraq came in first place among Arab countries as the largest exporter of oil to America, ahead of Saudi Arabia, which came in second with exports of 7.380 million barrels, and Libya came in third with exports of 1.440 million barrels.”

Shafaq.com

The Iraqi embassy welcomes the cancellation of the US authorizations for the use of military force against Iraq.

The Iraqi Embassy in Washington welcomed the US House of Representatives’ vote to repeal the two authorizations for the use of military force against Iraq. A statement from the Iraqi Embassy said, “The Embassy of the Republic of Iraq in Washington welcomes the US House of Representatives’ vote to repeal the 1991 and 2002 authorizations for the use of military force against Iraq and to repeal the war laws, in a step that strengthens the partnership between Iraq and the United States and supports the bilateral relationship on the basis of dialogue and cooperation.”

The US House of Representatives voted on the National Defense Authorization Act (which includes repealing the authorizations for the use of military force against Iraq), with a result of 312 in favor of the bill and 212 against it.

Burathanews.com

Multiple exchange rates

In the heart of Baghdad, amidst the constant monitoring of currency exchange rates, the Iraqi economy breathes with every fluctuation in the dollar’s value. With each rise or fall, voices of anxiety rise, or the pulse of the markets slows, reflecting the fragility of an economic structure still reliant on a single resource. Today, with expectations of increased global oil supply and falling crude prices, crucial questions arise: How can Iraq safeguard its economy? And can a selective exchange rate policy be part of the solution?

Expert readings indicate that this policy, if implemented as part of a comprehensive reform package, could constitute a smart mechanism for adapting to international storms and protecting the citizen at the same time.

The Iraqi currency market is currently experiencing relative stability, with the dinar’s exchange rate against the dollar recently rising in the parallel market. In Baghdad, it reached 1420 dinars for selling and 1415 dinars for buying. Experts attribute this stability to several factors, most notably the trend of traders using the official Central Bank platform to purchase dollars, improved confidence resulting from relative security and the success of the recent elections, and the effectiveness of the Central Bank’s oversight measures in curbing smuggling.

However, this calm may be temporary. The international landscape suggests the possibility of an oil crisis with the potential return of oil supplies from countries like Iran, Venezuela, and Russia should geopolitical conditions shift. Such a scenario, while hypothetical in the short term, could lead to an unprecedented global oversupply and a sharp drop in prices, placing the Iraqi economy, which relies on oil for approximately 90% of its budget, on the brink of an existential crisis.

In the face of these challenges, the idea of ​​adopting a selective or multi-level exchange rate system emerges. This idea is based on a simple but profound economic principle of directing the state’s limited resources to protect the citizen and stimulate local production, instead of paying the bill for importing luxuries.

How does this policy work?

A subsidized exchange rate is granted for the import of basic and vital goods that are part of the citizen’s daily life, such as wheat, medicines, raw materials for local production, and agricultural machinery.

• An intermediary exchange rate may be applied to intermediate sectors or to specific strategic sectors that need reconstruction.

A free or high exchange rate is applied to the import of luxury goods, such as luxury cars, modern electronics, perfumes and luxury products.

• Potential benefits:

Protecting the poor and middle class by securing basic goods at reasonable prices, thus limiting imported inflation in essential goods.

Encouraging local production makes importing raw materials for production cheaper, while imported luxury goods become expensive, thus stimulating demand for local products.

Rationalizing government spending and hard currency: Directing precious oil dollar reserves towards what is truly necessary for the economy and the citizen.

• Increased government revenues: through the price difference achieved from selling dollars to import luxury goods at a higher price.

However, many economists warn against viewing any exchange rate adjustment, including multiple exchange rates, as a magic bullet or a one-off solution. Economist Mahmoud Dagher emphasizes that “changing the exchange rate cannot be the sole cure for the crisis, as long as it is not accompanied by a set of complementary measures.”

The idea of ​​multiple exchange rates in Iraq is not mere economic fantasy; it is a difficult strategic choice that requires political courage and administrative acumen. It is not a magic wand to rescue an economy suffering from chronic structural problems, but it could be a smart defense mechanism that protects vulnerable segments of society and preserves the country’s resources in the lean years that may lie ahead. The decision now is one of will: Will Iraq begin, now, to build a productive and resilient economy, or will it remain captive to rent-seeking and the dominance of a single revenue stream? The answer will be determined by the decisive measures the next government takes on the path to genuine and comprehensive reform.

Alsabaah.iq

Advisor to the Prime Minister: Iraq’s reserves protect the dinar from current fluctuations

Iraqi Dinar-Dollar auctionsThe economic advisor to the Prime Minister, Mazhar Muhammad Saleh, confirmed that there is no direct link in the short term between current financial developments and monetary stability.

Saleh told Al-Furat News Agency that: “The monetary authority still has sufficient foreign reserves that enable it to protect macroeconomic stability and finance the deficit in the current account of the balance of payments.”

He added, “These reserves have high efficiency standards that ensure the Central Bank’s continued ability to enforce discipline in the money market, particularly in the exchange market, in order to maintain the stability of the currency’s value and the movement of external liquidity.”

Saleh affirmed that “the monetary fundamentals remain strong and capable of absorbing any potential fluctuations.”

Alforatnews.iq

Branches of Rafidain Bank outside Iraq face the risk of closure due to “financial problems and violations”.

Informed sources revealed on Monday that the branch of the Iraqi state-owned Rafidain Bank in the UAE capital, Abu Dhabi, is facing the risk of closure due to administrative and financial problems and violations that were detected during the past period.

The sources told Shafaq News Agency that “there are concerns about the repercussions of these continued violations on the bank’s operations and its external reputation.”

She added that the problems are not limited to the Abu Dhabi branch alone, but extend to a number of the bank’s branches abroad, which also suffer from varying administrative and financial violations.

The sources also indicated that regulatory authorities are required to open extensive investigations to determine the extent of the violations and hold those responsible accountable in order to protect the bank’s funds and prevent the exacerbation of financial and administrative crises in its foreign branches.

The Yemeni Minister of Information, Culture and Tourism, Muammar Al-Iryani, announced at the beginning of October 2025 the closure of the Iraqi state-owned Rafidain Bank branches in Sana’a.

Al-Iryani said in a post on the “X” website that “the decision by the Iraqi Rafidain Bank to close its branch in Sana’a and end its financial and banking activity is a step in the right direction, and a direct result of international efforts aimed at drying up the sources of funding for the Houthi group.”

He pointed out that this measure “reflects a positive response to governmental warnings and American and international pressure, and sends a clear message to the rest of the regional and international financial institutions, about the need to review their activities, and to ensure that they do not fall into the circle of exploitation or employment to serve the agendas of the Iranian regime and its terrorist arms in the region.”

Al-Iryani stressed that “the Houthis have turned the financial and banking institutions operating in the areas under their control into tools for plundering the money of Yemenis and financing their cross-border terrorist activities.”

Last August, US Congressman Joe Wilson accused the state-owned Rafidain Bank of conducting financial transactions with the Houthi group in Yemen, threatening to cut off US funding to Iraq as a result.

Wilson wrote in a post on the “X-formerly Twitter” platform that “the Iraqi state-owned Rafidain Bank is conducting financial transactions on behalf of the Houthis, a terrorist organization,” adding, “We have a name for these countries: state sponsors of terrorism.”

He added, “I will work to cut off funding to Iraq during the next appropriations legislation” in the United States budget.

Wilson also urged the US Treasury Department to “punish” Rafidain Bank.

Shafaq.com

The Federal Court receives the final election results for the purpose of ratifying them.

The Independent High Electoral Commission sent the final results of the sixth parliamentary elections to the Federal Supreme Court (the highest judicial authority in Iraq) on Monday for ratification.

This came according to what was announced by the Commission’s spokesperson, Jumana Al-Ghalai, in a brief audio statement that she circulated to the media, including Shafaq News Agency.

The Iraqi electoral judiciary resolved all 853 appeals against the election results on Sunday.

The political scene in Iraq has been in a state of anticipation for days, awaiting the Electoral Commission’s decision on the last appeals submitted regarding the results of the 2025 parliamentary elections.

The commission conducted the general and special voting on November 9 and 11, as part of the sixth Iraqi parliamentary session, within the framework of the political process that was formed after 2003. The Shiite lists won 187 seats, the Sunni lists won 77 seats, and the Kurdish lists won 56 seats.

The commission announced that the “Reconstruction and Development” alliance, led by Mohammed Shia al-Sudani, made significant progress, achieving 1,317,346 votes in 12 governorates, followed by the Progress Party, headed by Mohammed al-Halbousi, and then the State of Law coalition, led by Nouri al-Maliki.

Shafaq.com

Officially, Chevron is negotiating with Baghdad to fill the void left by Lukoil in the West Qurna 2 oil field.

On Monday, the Minister of Oil discussed the development of the oil sector with the American company Chevron, while an informed source revealed that the negotiations were for the company to take over the West Qurna 2 field instead of the Russian company.

The Ministry of Oil said in a statement received by Shafaq News Agency that “Deputy Prime Minister for Energy Affairs and Minister of Oil, Hayyan Abdul Ghani, received a delegation from the American company Chevron.”

She added, “During the meeting, topics related to the development of the gas and oil sectors were discussed.”

For its part, an informed source revealed to Shafaq News Agency that “the meeting witnessed negotiations between the ministry and the company, for the latter to take over the West Qurna 2 field instead of the Russian Lukoil.”

Last Monday, the Iraqi Ministry of Oil invited several American oil companies to enter into negotiations regarding control of the West Qurna-2 field, and to seek to transfer the operation of the field to one of the companies through competitive bids .

It is worth noting that the Russian company Lukoil declared force majeure at the West Qurna-2 field on November 19th, after its operations were disrupted due to Western sanctions imposed on it, as it sent an official letter to the Iraqi Ministry of Oil stating that there were force majeure circumstances preventing it from continuing operations .

The West Qurna 2 field is one of the huge oil fields in southern Iraq. It was discovered in 1973, and its operating agreement includes the Russian company Lukoil with a 75% stake and the Iraqi South Oil Company. The field forms a key pillar of the Iraqi economy through its contribution to increasing oil production.

Reuters revealed last week that ExxonMobil had contacted the Iraqi Oil Ministry to express its interest in buying the majority stake held by Russia’s Lukoil in the giant West Qurna-2 oil field.

Shafaq.com

The Iraqi government is surprised by the recent statements of the US envoy regarding the internal situation in Iraq.

The Iraqi government expressed surprise at the recent statements made by the US envoy regarding the internal situation in Iraq.

A statement from the Iraqi Ministry of Foreign Affairs said that “Deputy Prime Minister and Minister of Foreign Affairs, Fuad Hussein, met Sunday, December 7, 2025, with the US President’s Special Envoy for the Syrian file, Thomas Barak, on the sidelines of the Doha Forum. They reviewed the stages that Iraq went through to consolidate its democratic approach after 2003, and the complex challenges that accompanied these transformations, stressing that Iraq remains committed to its democratic choice and to building its institutions, and rejecting any form of dictatorship from which it suffered for decades.”

In a related context, the minister pointed to the challenges facing Syria, the efforts being made on the political track, and the role of the US envoy in this matter.

Fuad Hussein also expressed the Iraqi government’s “surprise at the recent statements of the US envoy regarding the internal situation in Iraq, explaining that it was important to clarify the vision in a different way and in a way that reflects the reality of what has been achieved in Iraq in terms of political development and relative stability, stressing that the choices of the Iraqi people are respected, and that democracy and the federal system are established in the constitution, and have become a firm path that has no alternative despite the challenges.”

The minister stressed “the importance of joint cooperation between Iraq and the United States of America, and strengthening the strategic partnership between the two countries, praising the role played by the United States within the international coalition to fight the terrorist organization ISIS.”

He also stressed “the need to represent all components of the Syrian people in the political process, and to begin a comprehensive national dialogue, while affirming the readiness of the Iraqi government to provide support and advice and to benefit from the Iraqi experience in dealing with political and security crises.”

For his part, Thomas Barrack expressed his “thanks and gratitude to the Minister for the historical and political vision he presented regarding Iraq and what it witnessed before 2003, stressing that the American administration views the Iraqi experience with respect and that what he stated pertains to the aspect of the American experience in Iraq.”

The US envoy also touched on “the current situation in Syria, stressing the importance of dealing fairly with all Syrian components and supporting efforts to find solutions to the situation, and this is a matter for the Syrian people to decide.”

The US special envoy to Syria, Tom Barrack, had criticized the policy pursued by previous US administrations in Iraq.

Barak said in an interview with The National that “Iran stepped in and filled the vacuum in Iraq because we created a crazy structure that gave Iranian militias more influence than the parliament.”

Barak considered Iraq a clear example of mistakes that the United States should not repeat, according to what Al Arabiya Net reported.

Burathanews.com