A liquidity crisis is putting pressure on Iraq’s finances; a government advisor proposes two options.

The financial advisor to the Iraqi government, Mazhar Muhammad Saleh, confirmed on Monday that the country’s public finances are facing a liquidity crisis as a result of declining oil revenues due to the repercussions of the Strait of Hormuz crisis, revealing two main options to address the revenue gap and ensure the continuation of government spending.

Saleh told Shafaq News Agency that public revenues may not exceed 4 trillion dinars per month, compared to operating expenses estimated at about 8 trillion dinars, including salaries, pensions and social welfare.

He explained that the current crisis represents a short-term liquidity crisis resulting from an imbalance between incoming cash flows and fixed financial obligations, rather than a structural crisis in the state’s financial capacity.

He explained that the first option is to resort to internal financing through the issuance of short-term government debt instruments and the activation of open market operations in coordination with the central bank, to provide urgent liquidity that enables the state to meet its obligations, warning of potential inflationary pressures and risks to the exchange rate if these measures are not managed carefully.

He added that the second option is to borrow externally through international financial institutions or global capital markets by issuing international bonds or loans with sovereign guarantees, noting that this path supports foreign reserves and enhances the stability of the dinar, but it may be linked to reform conditions.

Saleh suggested adopting a mix of rapid domestic financing to cover immediate needs, and external borrowing later to enhance financial stability in the medium term.

He stressed that the success of this approach depends on controlling public spending, improving non-oil revenues, maintaining exchange rate stability, and restoring optimal oil export capacities.

He concluded by saying that the Strait of Hormuz crisis has once again highlighted the fragility of Iraq’s dependence on oil revenues, and the need to build more flexible and sustainable financial instruments.

Shafaq.com

United States: Iraqi government-linked entities support militias that threaten Americans

The US Embassy in Baghdad warned its citizens on Monday of continued security risks in Iraq, despite the reopening of airspace and the resumption of limited commercial flights, urging Americans not to travel to Iraq and to leave immediately if they are already there. It also accused parties linked to the Iraqi government of providing political, financial and operational cover to “Iranian-linked militias.”

The embassy said in a new security alert issued today, which was seen by Shafaq News Agency, that Iraqi airspace has been reopened, but air travelers through Iraq should be aware of the ongoing risks associated with missiles, drones and projectiles.

The embassy added that what it described as “Iraqi terrorist militias allied with Iran” continue to plan additional attacks against American citizens and US-related targets throughout Iraq, including the Kurdistan Region.

The US embassy accused “entities linked to the Iraqi government of providing political, financial, and operational cover to Iraqi militias allied with Iran,” and said they continue to plan attacks against US citizens and US-linked targets.

The embassy confirmed that the US mission in Iraq would continue to operate despite the mandatory departure order, noting that its services were limited to assisting American citizens, while warning against going to the embassy in Baghdad or the consulate in Erbil due to security risks.

The embassy renewed its Level 4 travel warning, which states “Do not travel to Iraq for any reason,” urging American citizens currently in the country to leave immediately.

Regarding exit options, the embassy noted that land routes to Jordan, Kuwait, Saudi Arabia and Turkey remain open, with long delays and local entry and exit procedures expected, as well as the possibility of higher airfares or cancellations at short notice.

The embassy also announced the suspension of all routine consular services in Iraq, including visa services, urging American citizens to communicate via email only in emergencies.

Shafaq.com

“Within days”… Iraq to resume pumping its oil through the “Kirkuk-Ceyhan” pipeline

On Monday, an official source at the North Oil Company revealed that the work of connecting all secondary pumping stations linked to the (K1) and (AT1) stations in Kirkuk has been completed, in a preliminary step to restart the oil pumping system in the next few days via the “Kirkuk-Ceyhan” pipeline.

The source told Shafaq News Agency that “the technical and engineering staff were able to complete the connection of all secondary pumping stations within the system linked to the K1 and AT1 stations,” indicating that “actual pumping operations will begin within days, preceded by a trial pumping phase to ensure the network’s readiness and operational efficiency.”

This development comes at a time when stakeholders are seeking to reactivate the infrastructure of the oil sector in Kirkuk, following periods of shutdown and technical and security challenges that have affected the stability of transportation and export operations.

K1 station is one of the most important strategic stations in the oil transport system in northern Iraq, as it represents a key connection point for pipelines extending towards export, while AT1 station contributes to supporting pumping operations and enhancing the flexibility of the oil network.

According to experts, completing the connection works between the secondary stations represents an important technical step to ensure the stability of oil flow and reduce the rates of malfunctions or interruptions, as well as raising the operational efficiency of the system as a whole.

In this context, experts believe that resuming pumping operations would contribute to boosting oil revenues, especially given the Iraqi economy’s heavy reliance on oil exports as a primary source of income.

Positive indicators

For his part, Ali Khalil, an economic expert, told Shafaq News Agency that “the reactivation of pumping stations in Kirkuk represents an important step towards increasing Iraq’s export capacity, especially from the northern fields, which have large production capacities but have not been fully exploited in the past.”

He added that “improving the infrastructure of the oil transport sector will contribute to reducing technical bottlenecks and raising export efficiency, which will directly reflect on the size of the state’s financial revenues,” noting that “any increase in oil exports will provide additional support for the general budget, especially in light of the economic challenges facing the country.”

Khalil explained that “the stability of pumping and export operations from Kirkuk can enhance the confidence of foreign companies operating in the oil sector and open the door to new investments in field development and infrastructure,” noting that “this requires continued government support and the provision of a safe and stable working environment.”

Regarding local repercussions, the economist pointed out that “revitalizing the oil sector in Kirkuk may contribute to boosting the local economy by providing direct and indirect job opportunities and stimulating related sectors such as transportation and services.”

He also pointed out that “increased production and exports may give the government more financial space to improve basic services, especially in oil-producing provinces that suffer from a lack of infrastructure.”

Despite these positive indicators, Khalil stressed the need to “manage oil resources efficiently and transparently to ensure maximum economic benefit from them,” calling for “diversifying income sources and not relying entirely on oil to reduce the impact of global price fluctuations.”

Full readiness

Meanwhile, the source at the North Oil Company confirmed that “the next phase will witness close monitoring of the experimental pumping operations, to ensure that there are no technical obstacles,” noting that “the technical staff are ready to deal with any emergency that may occur during the operation phase.”

The resumption of pumping operations from Kirkuk stations is expected to contribute to strengthening Iraq’s position in the energy markets, especially with the increasing global demand for oil, giving the country an opportunity to maximize its revenues and achieve greater economic stability in the coming period.

Shafaq.com

Parliamentary Finance Committee: The 2026 budget is linked to the formation of a new government.

The Finance Committee in the Iraqi Parliament confirmed on Monday that voting on the 2026 budget law is linked to the formation of the next government, the government program, and the speed with which it is sent to the Council.

Committee member Ribwar Karim told Shafaq News Agency that the committee received information from the government indicating that “there is no liquidity crisis, and that employees’ salaries are fully secured for the coming months.”

Karim added that the parliament is still waiting for the formation of the next government with full powers, so that it can present projects to confront any economic crisis in the next stage.

He noted that if the new government is determined to send the federal budget law to parliament, the finance committee is ready to read, discuss and vote on the law in record time.

Shafaq.com

Following the “cloud theft” controversy, an Iraqi MP calls for discussions on climate warfare with experts.

MP Abdullah Al-Khaigani commented on Monday on the controversy sparked by his previous statements regarding “cloud theft,” announcing his intention to discuss what he described as “climate wars” with specialists and experts in this field.

Al-Khaigani told Shafaq News Agency that there would be discussions with climate experts regarding what he called “geological engineering” and “atmospheric modification weapons,” which necessitated a note, according to him.

He added that among these techniques is “cloud seeding” or influencing clouds through the use of chemical compounds released by aircraft or other means, noting that some accusations speak of raining clouds before they reach other areas, which leads to a decrease in the chances of rainfall in those areas.

Al-Khaigani had previously sparked widespread reaction after televised statements in which he said that the United States was “stealing clouds” from Turkish and Iranian skies, and that its preoccupation with the war with Iran had contributed to the return of rain to the region.

He also mentioned that Iran and Turkey had filed complaints in this regard, which sparked widespread reactions on social media.

Shafaq.com

Deputy: The framework is determined to hold a meeting on Monday, and if it is postponed, it will be the last one.

MP Ahmed Salem Al-Saadi, from the Al-Hikma bloc, said on Sunday that the coordinating framework is determined to hold the next meeting to decide on the candidate for prime minister, and if it is postponed, “it will be the final postponement.”

Al-Saadi told Shafaq News Agency that “the next 72 hours will be crucial for agreeing on a candidate for the position of Prime Minister, and time is starting to put pressure on the leadership of the framework to resolve the matter.”

He added that “the coordination framework is more concerned than others with respecting the constitutional timeframe, and it is not possible to tolerate or ignore the remaining constitutional timeframe being disregarded.”

Al-Saadi stressed that “there is a framework of will to hold the meeting on Monday as scheduled, and it will be decisive. If the meeting is postponed, it will be the last one.”

Earlier today, the General Secretariat of the Coordination Framework called on the forces of the framework to hold a meeting tomorrow, Monday, at the office of the leader of the Wisdom Movement, Ammar al-Hakim, stressing that the agenda is limited to deciding on the candidate for the premiership.

The coordinating framework that includes the ruling Shiite political forces in Iraq failed to hold a “crucial” meeting yesterday, Saturday, and it was postponed until tomorrow, Monday.

These developments come at a time when the government formation process has entered a critical phase, following the election of Nizar Amidi as President of the Republic. This places the largest bloc before a constitutional deadline ending on April 26 to officially present its candidate, amid fears of returning to square one of political deadlock.

The Islamic Dawa Party confirmed on Sunday afternoon that its leader, Nouri al-Maliki, remains the sole candidate for prime minister, while denying that any alternative to him had been presented.

The party said in a statement received by Shafaq News Agency, “Al-Maliki has not withdrawn his candidacy until this moment, and the decision to withdraw the candidacy is solely up to the framework, as it is the body that nominated him by majority vote, and therefore the withdrawal of the candidacy must be done by the same mechanism by which he was nominated.”

The party denied the validity of what is being circulated about al-Maliki nominating any alternative to himself, adding: “There is a clear difference between al-Maliki endorsing the nomination of a specific person from among the names, and him adhering to the nomination of the framework and abiding by it.”

The Reconstruction and Development Coalition, led by Mohammed Shia al-Sudani, responded to the Dawa Party’s statement. Khalid Walid, a leader in the coalition, told Shafaq News Agency that “the Dawa Party’s statement today, which confirms al-Maliki’s nomination through the framework, faces clear opposition after the Reconstruction and Development Coalition withdrew its support for al-Maliki and confirmed its sole candidate, al-Sudani.”

He added that “going with the Maliki option will put us in front of a more complicated crisis, and we emphasize that the support of eight parties within the framework, in addition to the support of the national space, represents the decisive element,” explaining that “the assignment of Al-Sudani lacks the decision to be taken unanimously or by majority vote and the completion of the process of forming the government, which will face great and complex challenges.”

Shafaq.com

Bloomberg: Commercial shipping traffic in the Strait of Hormuz has completely stopped.

Bloomberg reported on Sunday that tracking data showed commercial shipping traffic through the Strait of Hormuz had completely stopped.

The agency stated that the halt came after the slight increase witnessed on Saturday.

Tehran, through statements by senior officials, confirmed earlier on Sunday that there is a new system governing the Strait of Hormuz, and that the imposition of security is “over”.

These developments coincide with the announcement yesterday by the military spokesman for the Iranian “Khatam al-Anbiya” headquarters that the Strait of Hormuz would be closed again, as it was during the 40-day military conflict in the region.

The spokesman stressed that the strait would remain under the control of the armed forces and under strict surveillance, noting that the continuation of this situation depended on the United States not committing to guaranteeing the freedom of movement of ships to and from Iran.

Shafaq.com

Trump: We hope Iran will accept our offer or we will destroy all power plants and bridges 

US President Donald Trump confirmed on Sunday that an agreement with Iran will happen one way or another.

Trump said in brief remarks to ABC News: “The agreement with Iran will happen one way or another, in a friendly way or a hard way.”

He added: Iran has committed a serious violation of the ceasefire, but we believe we are capable of reaching an agreement.

He added: We are making a fair and acceptable offer to Iran and we hope that they will accept it. If they do not, we will destroy all power stations and bridges.

He continued: Our representatives will head to Islamabad tomorrow evening for negotiations, explaining: It is time to end the Iranian killing machine.

He continued: Iran decided to open fire yesterday in the Strait of Hormuz in flagrant violation of the ceasefire agreement, and it is losing $500 million a day from closing the strait, while we are not losing anything.

Trump’s remarks come after the Iranian military spokesman for the Khatam al-Anbiya headquarters announced yesterday the re-closure of the Strait of Hormuz, as was the case during the 40-day military conflict in the region .

The spokesman stressed that the strait would remain under the control of the armed forces and under strict surveillance, noting that the continuation of this situation depended on the United States not committing to guaranteeing the freedom of movement of ships to and from Iran.

Shafaq.com

The President told the Iranian Ambassador: The importance of continuing dialogue and sparing the region the dangers of war.

President Nizar Amidi affirmed to the Iranian Ambassador to Iraq, Mohammad Kazem Al-Sadeq, on Sunday the importance of continuing dialogue and sparing the region the dangers of wars. The Presidential Media Office stated in a statement that “President Nizar Amidi received at Baghdad Palace the Iranian Ambassador to Iraq, Mohammad Kazem Al-Sadeq, who offered his congratulations on assuming his duties, wishing him success in carrying out his responsibilities.”

During the meeting, according to the statement, “bilateral relations between the two countries and ways to strengthen them in various fields in a way that serves common interests were discussed, and developments in the security situation in the region were also discussed,” where the President stressed “the importance of continuing the dialogue and defusing the crisis, and sparing the region the dangers of wars, in a way that contributes to consolidating international peace and security.”

Burathanews.com

A deputy reveals the map of the division within the Coordination Framework between the Sudanese and Maliki factions.

Member of Parliament Murtada Al-Ibrahimi revealed today, Thursday, the map of alliances and political changes within the coordination framework regarding the file of naming the candidate of the largest bloc, stressing the existence of a division between three fronts that support Al-Maliki and Al-Sudani and another that takes a neutral position.

In a televised statement monitored by Al-Maalomah News Agency, Al-Ibrahimi said, “The Coordination Framework map has been divided into three sections as of Wednesday night. The first section includes six leaders who support renewing the mandate of Mohammed Shia al-Sudani, while three leaders support the head of the State of Law Coalition, Nouri al-Maliki, and three others are adopting a neutral stance.”

He added, “The bloc supporting al-Sudani includes the Reconstruction and Development Bloc, the Badr Organization, the Wisdom Movement, the Sanad Movement, and the Sadiqun Movement.” He explained that “those supporting Nouri al-Maliki are the Dawa Party, the Supreme Council, and the Asas Gathering.”

Al-Ibrahimi indicated that “the section that remains neutral includes the Victory Coalition, the Determination Bloc, and the Virtue Party,” noting that “these figures reflect the nature of the ongoing movement within the framework’s forces to resolve the issue of the next prime minister.”

Almaalomah.me